Advocating for a Dedicated Agency to Drive National Palm Oil Development

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Palm oil plantation. Photo by: Sawit Fest 2021 / Achmad Dadang Hidayah

PALMOILMAGAZINE, BANDUNG – Malaysia has solidified its position as a key player in the palm oil sector by generating over 260 derivative products from crude palm oil (CPO), including direct extracts like tocotrienols and tocopherols derived from palm oil trees. This success has been attributed to advanced technology, as well as secure and well-defined regulatory roles.

Contrastingly, Indonesia, despite having significant potential in the industry, faces hurdles due to regulatory uncertainties and frequent changes in regulations. Despite having a larger potential for palm oil plantations than Malaysia, the ambiguity in regulations and the involvement of multiple ministries have impeded the industry’s progress.

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Knowing the progress, Chairman in duty of Indonesian Palm Oil Board, Sahat Sinage proposed to get more approach approaches and be efficient by establishing one agency that would deliver direct report to President. The related ministries would be only as supporters.

Also Read: Bungaran Saragih: CPO is more economical, but non-price competition will be more stringent

“We need conducive markets, stable regulation. By having one agency that focuses and be consistent, palm oil downstream industries would be developing well,” Sinaga told at Workshop Jurnalis Industri Hilir Sawit in Bandung that attended, Thursday (1/2/204).

He also told that palm oil industries would be much more developing with the supports of regulation and should be consistent. The regulations should not be substituted to help Indonesia get its position back in palm oil industries.

Head of Sustainability Asosiasi Produsen Biofuel Indonesia (Aprobi), Rapolo Hutabarat told new dimension in the discussion. He thought it needs material source diversification to support biofuel development. Hutabarat also told that depending on palm oil would not be enough. Indonesia needs to cooperate with same kind vegetable oil (producers).

“We should not depend on palm oil only to develop biofuel. We would reach the goal by taking other vegetable oil producers,” he said.

Hutabarat also reminded that in 2024, it would need 2 million tons more to fulfill biodiesel 40 percent (B40) needs. It is important to maintain material supplies so that industrial investment would always go on.

By solving the obstacle of regulation, but focusing on innovation and sustainability, and also material source diversification, Indonesia would reinforce its position in palm oil industries and support to develop biofuel for more sustainable future. (T2)

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