PALMOILMAGAZINE, KUBU RAYA – The opening of the 5th Indonesian Palm Oil Smallholder Conference (IPOSC) in Kubu Raya, West Kalimantan, on Wednesday (September 23, 2025), marked an important moment for smallholders from across Indonesia. Representing the Governor of West Kalimantan, Heronimus Hero, Head of the Provincial Livestock and Plantation Agency, underscored the strategic role of the plantation subsector—especially palm oil—in supporting both the national and regional economy.
“The plantation subsector, particularly palm oil, is highly dominant in West Kalimantan’s economy. More than 20% of the province’s GRDP comes from agriculture, with palm oil as the leading commodity. Around one million farmers in West Kalimantan depend on palm oil for their livelihoods,” Hero said in his opening remarks, attended by Palmoilmagazine.com.
Currently, West Kalimantan hosts 368 palm oil companies with a total plantation area of 3.9 million hectares. Of this, around 1.6–1.7 million hectares are already productive, while approximately 900,000 hectares remain available for future investment, provided development follows existing sustainability regulations.
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Hero stressed the importance of maintaining a balance between economic growth and compliance with sustainability standards. “Investment must operate within the rules. We should not allow only negative narratives about palm oil to dominate. The fact is, palm oil makes a tangible contribution—not only to West Kalimantan but also to the national economy,” he stated.
Provincial government data also shows palm oil’s contribution extends beyond plantations to downstream industries. In total, 32% of West Kalimantan’s GRDP is supported by palm oil and its derivatives. “More than 150,000 people are directly involved in the industry, and if we count their families, palm oil supports nearly 40% of the province’s population,” Hero explained.
At the same time, he cautioned that the industry faces significant challenges, particularly from stricter global market regulations such as those imposed by the European Union. For this reason, the 5th IPOSC is expected to serve as a platform for farmers, associations, and stakeholders to reinforce their commitment to sustainable palm oil.
“Our palm oil industry must adapt to sustainability demands. Dialogues like this are essential to ensure smallholders are not disadvantaged and remain part of the global supply chain,” Hero concluded. (P2)
