PALMOILMAGAZINE, BANDUNG – The palm oil industry plays a crucial role in the Indonesian economy. However, ensuring sustainability and the welfare of smallholders requires establishing a business framework that involves plantations transitioning from ‘forest region status’ and obtaining certification to transform the industry into a ‘bankable asset.’
Currently, palm oil productivity at the smallholder level stands at 25 tons of fresh fruit bunch (FFB) per hectare per year, which is suboptimal. To enhance productivity, strategic measures such as the implementation of modern technology and intensive technical guidelines for smallholders are essential.
To achieve higher sustainability, there is a need to prioritize the utilization of biomass for higher-value products. This can be realized through leveraging current technology to produce low emissions while simultaneously improving the nutrient quality in FFB.
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Knowing palm oil industrial values in 2023, domestic supply totally reached 22,9 million tons or about US$ 21,4 billion. While palm oil exports reached 33,3 million tons with the values about US$ 38,4 billion. Biomass advantages reached 140,9 million tons with the value about US$ 3,1 billion. The total values from palm oil industries reached US$ 62,9 billion.
But Chairman in duty of Indonesian Palm Oil Board (IPOB), Sahat Sinaga said there would be bigger potential if the nowadays regulations would not postpone industrial development.
“The numbers could escalate in Indonesia if the regulations do not closely regulate,” Sinaga said in a Workshop Jurnalis Industri Hilir Sawit that Palmoilmagazine.com attended, Thursday (31/1/2024) in Bandung.
He also said it needs cooperation among the governments, industries, and the people to create supporting regulation in palm oil industries while noticing sustainability aspects and environmental conservation.
“By these, it is hoped palm oil industries in Indonesia would always be developing sustainably and delivering maximal advantages for every stakeholder,” Sinaga said. (T2)
