IPOA Identifies Four Key Issues for Production Boost in Indonesia

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Palm oil mill. Photo by: Sawit Fest 2021 / Arie Basuki

PALMOILMAGAZINE, JAKARTA – In order to boost palm oil production to meet domestic demands and for export purposes, several crucial considerations must be addressed.

According to Eddy Martono, Chairman of the Indonesian Palm Oil Association (IPOA), resolving palm oil plantation issues in forest regions is paramount. IPOA advocates for the recognition that palm oil plantations holding legitimate land rights, whether in the form of freehold titles or business rights, should not be classified as part of forested areas.

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“The solution to Chapter 110 B Undang-Undang Cipta Kerja should exist without significantly minimizing area with that can develop palm oil plantations. If the width gets narrower, this would reduce palm oil production,” he said in a press conference that  Palmoilmagazine.com attended by the late of February 2024 in Jakarta.

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He also told, it needs to smoothly implement smallholders replanting program (SRP) by having harmony, simplification, and permit governance reformation programs. Eddy thought, it needs to run the program as the target, that is, 180.000 hectares per year. Every obstacle that blocks SRP program should be solved to get it run well.

He continued it needs to solve every overlapping regulation namely when it has something to do with FPKM (Fasilitas Pengolahan Kelapa Sawit) program that reached 20%. “The chaos about it still occurs. This could bother palm oil plantation productivity and sustainable industries,” he said.

In the future, IPOA proposed a long term – program to consider which is to develop palm oil plantations, just for energy needs (dedicated areas) namely in the former areas of degradation. Eddy thought, this would be about to confirm palm oil needs for energy sector that would not have something to do with food needs both for domestic industries and exports.

“These are hoped to positively contribute in escalating palm oil production, fulfill the domestic needs, and maintain sustainability in palm oil industries in this country,” he said. (T2)

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