InfoSAWIT, JAKARTA – Fresh fruit bunch (FFB) theft has emerged as one of the most pressing challenges facing Indonesia’s palm oil industry, yet discussions surrounding the issue continue to focus primarily on criminal law enforcement and plantation security. According to palm oil economist Dr. Veritia Sukarta, such an approach overlooks the deeper structural weaknesses that continue to fuel theft across plantation landscapes.

Writing in an opinion article, Dr. Veritia argues that FFB theft should not be viewed merely as a criminal act, but rather as a symptom of weak production governance, fragmented smallholder management, and fragile social relations between plantation companies and surrounding communities.

The scale of the economic loss is substantial.

Based on national estimates, if theft accounts for an average of just 2% of Indonesia’s total FFB production, annual losses could exceed Rp12.2 trillion. In areas with fragmented land ownership and open access, losses may reach 20–30%, while some plantations reportedly experience losses approaching 50% of their production potential.

Although large plantation companies absorb significant financial losses, Dr. Sukarta argues that independent smallholders ultimately bear the greatest burden because stolen harvests directly reduce household income.

The impact extends beyond lost volumes.

The theft of loose fruits and immature bunches also affects the quality of crude palm oil by reducing Oil Extraction Rate (OER) and encouraging premature harvesting, as growers rush to collect fruit before it is stolen.

Conventional security measures—including security guards, road barriers, drainage systems, administrative permits, and fruit stamping—remain necessary but have proven insufficient to eliminate the problem.

Instead, Dr. Sukarta proposes a broader governance approach centred on smallholder corporatisation, where independent farmers are organised into cooperatives, farmer groups, or village-owned enterprises capable of managing production collectively.

Such institutions would enable better implementation of Good Agricultural Practices (GAP), coordinated harvesting schedules, standardised labour management, traceable logistics, and transparent marketing channels.

Under this system, harvested fruit would move through a single marketing channel, making stolen produce significantly more difficult to enter the legal supply chain.

However, Dr. Sukarta argues that production governance alone will not solve the issue.

Long-term mitigation requires a fundamental shift in how plantation companies engage with surrounding communities.

Rather than treating neighbouring villages as potential security threats, companies should position local communities as strategic partners in protecting plantation assets. Employment opportunities, direct partnerships with smallholder organisations, support for local businesses, village infrastructure development, and respect for local customs all contribute to building trust and shared interests.

He also stresses the importance of strengthening employee engagement within plantation companies.

Workers who feel valued, fairly compensated, and emotionally connected to their employers are more likely to develop a strong sense of ownership, reducing the risk of insider involvement in theft while strengthening overall plantation security.

According to Dr. Sukarta, the future of plantation security lies not in more guards or stricter enforcement alone, but in stronger social infrastructure built upon collaboration, trust, and inclusive rural development.

The issue has also become increasingly relevant to international sustainability standards.

Frameworks such as ISPO, RSPO, NDPE, and the European Union Deforestation Regulation (EUDR) place growing emphasis not only on environmental performance but also on social responsibility and equitable relationships throughout the supply chain.

In that context, strengthening social governance and empowering organised smallholders should no longer be viewed solely as tools for reducing theft and conflict. Instead, they are becoming strategic prerequisites for maintaining the long-term competitiveness of Indonesia’s palm oil industry in increasingly sustainability-driven global markets. (T2)