InfoSAWIT, JAKARTA – Indonesia’s Agriculture Ministry has reaffirmed the importance of strengthening the upstream palm oil sector while accelerating downstream development to support national economic growth and energy security.
The priorities include accelerating smallholder replanting, ensuring access to certified high-quality planting materials, and strengthening farmers’ bargaining power across the palm oil value chain.
The message was delivered through remarks by the Agriculture Minister, read by Director of Oil Palm and Other Palms Iim Mucharam at the third Indonesian National Palm Oil Farmers Meeting (PENAS III) in Jakarta on Wednesday, attended by InfoSAWIT, October 28, 2026.
The government views palm oil as a strategic commodity that supports employment, sustains millions of families and contributes to the development of renewable energy.
However, the sector continues to face upstream challenges, including an ageing farmer population, increasingly old plantations and limited access to certified superior seeds.
Accelerating smallholder replanting is therefore considered essential to improving productivity, increasing farmers’ incomes and strengthening the competitiveness of Indonesia’s palm oil industry.
The programme needs to be supported by reliable planting materials, adequate technical assistance, stronger farmer organisations and better access to processing industries.
Downstream development is another priority, particularly as Indonesia advances its B50 biodiesel programme. A sustainable supply of palm oil feedstock will be crucial to supporting the country’s energy ambitions.
Smallholders play a central role in this strategy, accounting for more than 40% of Indonesia’s total oil palm plantation area.
The ministry emphasised the importance of cooperation among farmers, cooperatives, the Plantation Fund Management Agency (BPDP) and processing companies to strengthen supply chains and ensure that economic benefits are distributed more equitably.
Through closer collaboration and sustained investment in smallholder plantations, the government hopes to improve productivity, strengthen farmers’ independence and reinforce Indonesia’s position in the global food and energy markets. (T2)
