InfoSAWIT, JAKARTA – PT Agrinas Palma Nusantara reaffirmed its commitment to promoting cooperative-based downstreaming of smallholder palm oil as a key strategy to strengthen the people’s economy while optimizing the use of state-controlled land following forest area enforcement.
Quoting InfoSAWIT from official statement, on Monday, April 20, 2026, President Director Mohammad Abdul Ghani delivered the statement during a Focus Group Discussion themed “Strategy for Developing Smallholder Palm Oil Downstreaming: Synergy of Cooperatives, Businesses, and State Finance” held in Jakarta.
He emphasized that current government policies, particularly those related to forest area enforcement, must be followed by concrete steps to generate added economic value for communities.
“Land that has been reclaimed by the state must be utilized as much as possible for public welfare. One way is through cooperative-based downstreaming so farmers are not only raw material producers but also key players in the value chain,” he said.
Data presented in the forum showed Indonesia’s oil palm plantation area reaches around 16–17 million hectares, with approximately 41% managed by smallholders. However, their contribution to added value remains limited.
The palm oil sector employs around 11 million workers and is one of Indonesia’s largest foreign exchange contributors. Still, land inequality and illegal practices remain systemic challenges.
According to Ghani, downstreaming is crucial to strengthening Indonesia’s bargaining position as the world’s largest palm oil producer.
“Production is our strength, but control over pricing and value addition is still weak. Cooperative-based downstreaming is the solution,” he added.
The model positions cooperatives as key actors managing production up to initial processing stages such as crude palm oil (CPO), while also opening access to financing for processing facilities.
He expressed optimism that collaboration among government, cooperatives, and businesses will drive a more inclusive and sustainable palm oil industry transformation. (T2)
