North Sumatera Governor Urges Improvement in Palm Oil Industry Governance

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Palm Oil Fruit. Photo by:

PALMOILMAGAZINE, MEDAN – Governor in duty of North Sumatera Province, Hassanudin, has expressed a strong desire to enhance the governance of the palm oil industry for the future. He emphasized that this improvement is crucial, as the palm oil industry is a key driver of economic progress in the province.

In North Sumatera, palm oil plantations cover approximately 1.4 million hectares, producing about 24 million tons of fresh fruit bunches (FFB) annually. The province is home to around 237 companies operating in the palm oil sector, significantly contributing to employment.

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“Even though North Sumatera is not the biggest producer and largest plantations, the industries are massive here and deliver impacts to get employment. That is why we have to manage them better,” Hassanudin said after inaugurating a palm oil seminar in Medan, as quoted from KBRN RRI, Friday (31/5/2024).

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Besides palm oil production, the province is famously known to develop downstream sectors, such as, margarine, shampoo, lubricants, bio-gas, bio-ethanol, bio-plastic, and even power plants. One downstream sector which is being developed is red palm cooking oil.

“We would keep developing and managing the industries well to welfare our people,” he said. (T2)

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