Dominated by Private Sector, Palm Oil Plantation in 2022 Barely Growing Stagnant

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Illustration of oil palm plantation. Photo by: Sawit Fest 2021 / Yayan Saputra

PALMOILMAGAZINE, JAKARTA – Data from the Central Bureau of Statistics (CBS) indicates a significant escalation in palm oil plantations’ land use and crude palm oil (CPO) production in 2028 compared to preceding years.

This surge is attributed to the growing number of palm oil plantation companies expanding their operations, resulting in a total land area of 14.33 million hectares.

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Contrary to the stagnant growth observed from 2019 to 2022, palm oil plantations in land use experienced a noteworthy increase, reaching approximately 15.34 million hectares in 2022.

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This expansion occurred across 26 provinces, including Sumatra, Kalimantan, West Java, Banten, Central Sulawesi, South Sulawesi, Southeast Sulawesi, West Sulawesi, Gorontalo, Maluku, North Maluku, Papua, and West Papua.

In 2022, Riau Province was the biggest palm oil producer with the plantations laying on about 2,87 million hectares or 18,70 percent of total palm oil plantations in di Indonesia. Of the numbers, Riau produced 8,74 million tons CPO according to the provincial plantation and production in 2022.

As quoted from the official page of CBS, palm oil plantation width according to business status in 2023 did not significantly changed. Just like the previous years, land mastery was dominated by big private companies that laid on about 8,58 million hectares or 56% of the plantations in national scale, then smallholders’ plantations that mastered 6,21 million hectares or 40,51 percent, and the rests 0,55 million hectares or 3,57 percent by government’s companies. (T2)

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