PALMOILMAGAZINE, JAKARTA — Amid ongoing concerns over stagnant productivity in Indonesia’s palm oil plantations, two major players in the sector have agreed to strengthen their strategic collaboration. PT Agrinas Palma Nusantara (APN) and the Indonesian Palm Oil Association (GAPKI) recently met for an informal yet impactful discussion at APN’s headquarters in HK Tower, Cawang, Jakarta, to explore concrete measures aimed at enhancing the competitiveness of the national palm oil industry.
The meeting, held over coffee and light refreshments, was led by GAPKI Chairman Eddy Martono, accompanied by key members of GAPKI’s leadership and forestry team. They were warmly received by APN President Director Lt. Gen. (Ret.) Agus Sutomo, SE, and other senior executives, including Kusdi Sastro Kidjan.
The conversation centered around a longstanding concern shared by both parties: the stagnation of palm oil productivity. Both GAPKI and APN emphasized that this issue must be urgently addressed, given the palm oil sector’s vital role in supporting Indonesia’s economy, renewable energy supply, and national food security.
Kusdi reaffirmed that APN is not here to compete, but rather to serve as a strategic partner for palm oil businesses, including GAPKI members. He described APN as a “friend to palm oil entrepreneurs,” committed to building a stronger and more sustainable future for the industry.
“APN will remain a trusted partner to Indonesia’s palm oil entrepreneurs — moving forward together to build a more resilient and sustainable palm oil business,” Kusdi stated, as quoted by Palmoilmagazine.com from APN’s official site (Sunday, June 28, 2025).
As a state-owned enterprise under Indonesia’s food holding company, APN’s mandate is to strengthen the supply chains for food and energy derived from palm oil. In this context, partnership with GAPKI is seen as highly strategic and complementary.
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As a concrete outcome of the meeting, both parties agreed to establish a joint task force to formulate the technical groundwork for an Operational Cooperation Agreement (KSO) between APN and GAPKI members. This cooperation will focus on land development, the provision of high-quality seedlings, plantation rejuvenation, as well as logistics and downstream integration.
This initiative marks a new chapter in BUMN-private sector collaboration, shifting away from the traditionally fragmented approach and moving toward integrated, hands-on partnerships.
The meeting also reflects a paradigm shift in the development of Indonesia’s palm oil sector. Whereas past approaches often revolved around corporate or macro policy strategies, this partnership emphasizes practical, operational collaboration on the ground.
Both APN and GAPKI agreed that the future of Indonesia’s palm oil industry must be built on the foundations of collaboration, transparency, and sustainability. Facing increasing global pressure from regulatory changes, environmental scrutiny, and international market demands, the industry must reform from upstream to downstream to remain globally competitive. (P2)
