InfoSAWIT, JAKARTA — The issuance of Directorate General of Plantations Circular No. 1598/SE/KB.410/E/11/2025 marks a significant turning point in Indonesia’s palm oil governance. More than a technical guide, this regulation is a regulatory breakthrough designed to resolve long-standing bottlenecks in implementing the Fasilitasi Pembangunan Kebun Masyarakat Sekitar (FPKMS).
For years, FPKMS implementation has been hindered by two major structural issues, Limited availability of community land around plantation concessions, and High livestock production costs, primarily due to feed needs. The new circular presents a logical and realistic solution to both.
Productivity-Based Partnerships
The longstanding 20% FPKMS obligation often reaches deadlock as surrounding communities lack sufficient land. Attempts to force physical land allocation risk tenure conflicts and frequently stall progress.
The new policy provides a legal foundation to convert land-based obligations into productive ventures using the Sawit–Sapi Integration System (SISKA). This shift transforms the concept of land distribution into economically empowered, asset-based rural development.
By intensifying the use of existing plantation land—through palm-cattle integration—value creation is achieved without opening new areas.
Feed Supply Certainty
A critical factor in smallholder livestock success is access to affordable feed. Circular 1598/2025 explicitly requires plantation companies and mills to supply Palm Kernel Cake (BIS) within the SISKA scheme. As a widely available protein source within the palm oil ecosystem, BIS can significantly reduce feed logistics costs.
This model enables a circular economy: palm industry by-products become animal feed, and livestock manure enhances soil fertility.
Standardized Economic Valuation
Concerns that converting FPKMS obligations into cattle might disadvantage communities are addressed through the mandated Nilai Optimum Produksi (NOP) calculation. This ensures that every partnership yields equal or higher economic value compared to physical plantation facilitation.
The standardized valuation guarantees transparency and accountability in converting “hectare obligations” into livestock units, supporting facilities, and long-term economic output.
For companies, the policy offers an elegant exit strategy amidst land constraints. For communities, it opens pathways toward more bankable and sustainable livestock enterprises, supported by an integrated industry ecosystem.
The main challenge ahead lies in implementation—precision farming SOPs and transparent partnership management will determine the success of large-scale palm–cattle integration. (*)
By: Wahyu Darsono — Secretary-General of GAPENSISKA
Disclaimer: The views expressed are the author’s own and do not represent InfoSAWIT.
