Call for Leadership Reform: Overhauling Palm Oil Governance in Indonesia

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Danang Girindrawardana, an Expert Board member of the National Winning Team (TPN) Ganjar-Mahfud and Chairman of SPKS, Sabarudin. Photo by: Palmoilmagazine

PALMOILMAGAZINE, JAKARTA – Danang Girindrawardana, an Expert Board member of the National Winning Team (TPN) Ganjar-Mahfud, emphasized the significant role of palm oil in Indonesia’s economy. It serves as the primary export, encompassing crude palm oil (CPO) and its derivative products. Despite its substantial potential, challenges related to plantation productivity, sustainability, smallholders’ rights, and large plantations persist, requiring comprehensive solutions.

Currently, 40 percent of palm oil plantations are managed by smallholders, while the remainder is handled by prominent private companies and the government. Palm oil production faces a decline, and the productivity of smallholders’ plantations remains low. The controversial and complex policy surrounding palm cooking oil further complicates the situation.

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Girindrawardana stressed that resolving these issues demands holistic solutions involving relevant ministries, governmental bodies, and stakeholders. He suggested that one effective proposal could be the implementation of tax amnesty, contingent upon political will.

Also Read: Numerous Reasons Why Palm Oil Smallholders Would Choose Ganjar-Mahfud

“It is important to involve the leaders that would determine policy reformation in palm oil industries. Candidate leaders – Ganjar-Mahfud would play key roles to formulate the policy that would improve credibility of Indonesia and escalate the smallholders’ welfare,” he said in press conference of Petani Sawit Rakyat Dukung Ganjar-Mahfud, that InfoSAWIT and Serikat Petani Kelapa Sawit (SPKS) conducted, Thursday (1/2/224) in Jakarta.

He also told the plan to reinforce Palm Oil Plantation Fund Management Agency by escalating the credibility namely in upstream and medium sector by having synergy with related ministries.

“Ganjar-Mahfud offers clear and smart vision in reforming palm oil governance. With the supports from the stakeholders and government, and attention to legal enforcement, Indonesia would improve palm oil situation. By having these, Indonesia is hoped to maintain its dominant roles in palm oil industries in the globe and escalate the smallholders, stakeholders’ welfare in production supply chain,” he said. (T2)

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