PALMOILMAGAZINE, BALI – Franky Oesman Widjaja, Chairman and CEO of Sinar Mas Agribusiness and Food, underscored the urgent need for a climate- and nature-positive transformation in agriculture during his speech at the 7th International Conference of Oil Palm and Environment (ICOPE) in Bali, on Wednesday (Feb 12, 2025). He emphasized that sustainability in the palm oil sector is a key factor benefiting both Indonesia and the world.
Franky highlighted that Indonesia’s palm oil industry plays a crucial role in both the national and global economy. In 2024, the sector contributed US$47 billion to Indonesia’s GDP and provided employment for approximately 70 million people.
“Palm oil not only supports global food security but also has broad industrial and energy applications,” he stated.
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He further noted that the Indonesian government has designated palm oil as a strategic sector, aligning with the President’s vision for economic growth. With sustainable and inclusive management, Franky expressed confidence that Indonesia could achieve 8% economic growth within the next five years.
“Indonesia has already become one of the world’s largest economies based on purchasing power parity. This is a positive signal for our future growth,” he added.
Palm Oil’s Competitive Edge and Sustainability Imperative
Franky reiterated that palm oil has a competitive advantage over other vegetable oils due to its high productivity and lower carbon footprint. He stressed the industry’s responsibility to continue adopting sustainable practices to ensure both food and energy security, not just for Indonesia but globally.
To address global sustainability challenges, Franky emphasized the importance of an inclusive growth model, which has been implemented since 2017 through partnerships between the private sector, government, and smallholder farmers.
“Smallholder farmers who follow best agricultural practices have demonstrated productivity levels comparable to large corporations,” he explained.
Call for Inclusive and Collaborative Growth
Franky urged all stakeholders—government, industry, academia, and civil society—to commit to inclusive growth, reinforcing both global food security and plant-based energy industries. He stressed that collaboration is key to achieving a balance between economic development, environmental sustainability, and social well-being.
“We must show the world that Indonesia is part of the solution to global sustainability challenges. Through strong cooperation, we can drive economic growth that aligns with environmental preservation and social equity,” he concluded. (P2)
