Ganjar-Mahfud Promise to Solve Palm Oil Problem and Improve Ministry Coordination

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Palm oil plantation and forest area. Photo by: Sawit Fest 2021 / Anwarudin

PALMOILMAGAZINE, JAKARTA – To achieve the targeted 7% economic growth, Indonesia must focus on developing the agricultural sector, with palm oil plantations being a key pillar. Despite its potential, this sector faces intricate challenges that need resolution for Indonesia to lead the global vegetable oil industry.

Danang Girindrawardana, a member of the Expert Board of Tim Kampanye Nasional (TKN) Ganjar-Mahfud, highlighted a critical issue demanding serious attention—the uncertainty (legality) of areas. The palm oil industry grapples with challenges related to permits, land rights, and legal assurance.

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The sustainability of operations hinges on legal certainty, particularly concerning forest regulations that frequently introduce uncertainties for stakeholders.

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A second challenge lies in the coordination among various ministries and institutions with diverse interests in the palm oil industry. The coordination among the Ministry of Forestry, Trade, Industry, and Labor is not operating optimally.

Professor Mahfud, the Coordinator Minister in Politics, Law, and Security, is actively working to address conflicts and enhance synergy among these entities.

In this context, Coordinator Ministry in Economy has important roles as coordinator in the cabinet. But palm oil industrial complexity needs more integrated approach to solve conflicts of policy and interests.

But Danang said, Indonesia, as the vegetable oil producer in the world, is threatened in its domination. This rank could be no more available if there is no serious attention for palm oil industries. Malaysia as the second biggest palm oil producer has been very close to (replace) Indonesia.

“The issue is not only chaos that could be solved by simple approach. This involves more than 2 million direct and indirect workers in this industry. If there is no serious solution, Indonesia would potentially be not dominant in vegetable oil industries,” he said in Bincang Kompas that Palmoilmagazine.com saw, Friday (19/1/2024).

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He continued area legal would be the main focus. Smallholders replanting program (SRP) and bureaucracy reformation in Ministry of Agriculture should be the first thing to do to solve the issues. It also needs concrete thing to confirm the sustainability in this industry.

Bureaucracy reformation is the key to solve coordination among related ministries. The good synergy among the ministries would solve the conflicts of policy and make the industries go forward together.

Danang also mentioned, it is important to support downstream industries. Ministry of Trade, Ministry and Industry need to get synergy to confirm that palm oil downstream products would be having the markets well. “The balance between the upstream and downstream policies would deliver long-term advantages for the industries,” he said. (T2)

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