PALMOILMAGAZINE, JAKARTA – The Indonesian government plans to expand the Palm Oil Fund Management Agency (PFMA) into the Plantation Fund Management Agency to include other plantation commodities such as cocoa, coconut, and rubber. This move aims to boost competitiveness and productivity in these sectors, which have lagged behind palm oil.
Coordinating Minister for Economy, Airlangga Hartarto, stated that this expansion would help stimulate local economies, particularly in Sumatra and Kalimantan. “In Sumatra and Kalimantan, the plantation sector drives the local economy. Therefore, we aim to support the cocoa, coconut, and rubber industries so they can compete with palm oil,” he said during a press conference in Jakarta on Thursday, July 25, 2024.
Hartarto noted that the proposal to transform PFMA into Plantation Fund Management Agency was discussed in a coordination meeting with the Ministry of Trade. The government recognizes the need to enhance plantation industries to boost the economy and create new opportunities. The conversion is expected to improve productivity in these sectors and ensure they do not fall behind palm oil, which has dominated the industry for years.
Also Read: Ministry of Industry Initiates Cocoa and Coconut Agency to Improve Industry Support
“Cocoa, for instance, was developing in about 800 thousand hectares in its peak. But now cocoa plantations just laid on about less than 200 thousand hectares. This kind of industry is lack of material. Coconut, rubber, and cocoa are now left behind from palm oil but every commodity has the same potential. That is why PFMA would be in charge to revitalize the other commodities,” Airlangga said.
He also mentioned, there have been coconut seeds that would grow short in Thailand. This would ease the harvest process. “The coconut seeds in Thailand would grow short. It is easy to harvest, just like palm oil tree. While in food and drink industry, coconut, sugar palm, and others are needed the most,” he said.
The revitalization should escalate not only cocoa, coconut, and rubber production but also would reinforce economic security where the three commodities grew. This would be part of the government’s strategies to get economic diversity and escalate plantation commodity competition in the globe. (P2)
