PALMOILMAGAZINE, JAKARTA – Chairman of Rumah Sawit Indonesia (RSI), Kacuk Sumarto, stressed the need to continue the moratorium on palm oil expansion and prioritize intensification through replanting programs. This perspective was shared during a recent discussion on the future of Indonesia’s palm oil industry.
Kacuk highlighted that the productivity of smallholder oil palm plantations remains suboptimal, averaging just 2.5 tons per hectare annually, compared to a potential yield of 5 tons per hectare. “Through successful intensification, we could boost production capacity to 18–20 million tons per year without expanding into new land,” he stated during an interview with Palmoilmagazine.com on Monday (18/11/2024) in Jakarta.
He emphasized that intensification hinges on crop rejuvenation efforts, which require enabling regulations. These include mapping plantation areas and resolving the status of farmers’ lands still classified as forest zones. “Many lands, despite having property rights certifications, are still listed as forest areas. Resolving this issue is crucial to empowering farmers to enhance productivity,” he added.
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Kacuk also encouraged partnerships between companies and farmers in the replanting program. He is optimistic that in the next three years, this partnership can produce significant results. However, he admitted that oil palm plantations need time to return to normal productivity, given the long cycle of oil palm crops.
Palm Price Stability
In addition to productivity, Kacuk highlighted the importance of maintaining palm oil price stability. He proposed an export open-close policy as one solution to maintain market balance. “When prices are high, exports can be reduced. Conversely, when prices are low, exports can be increased to maintain farmers’ income,” he explained.
He emphasized the need for more integrative and less fragmented policy recommendations. “Policies so far are often fragmented and do not touch the root of the problem. We need policies that involve all parties, especially farmers, to produce a comprehensive solution,” Kacuk said.
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As an organization that focuses on the development of sustainable palm oil, RSI is committed to helping the government formulate policies that support farmers and the industry as a whole. “We will continue to encourage strategic steps so that Indonesian palm oil can compete in the global market, while improving the welfare of farmers,” Kacuk concluded.
With a focus on replanting, intensification, and market stability, RSI hopes that the Indonesian palm oil industry can develop more optimally, sustainably, and inclusively. (P2)
