GAPKI Highlights Legal Uncertainty and Policy Overlap as Challenges for the Palm Oil Industry

PALMOILMAGAZINE, BOGOR – The national palm oil industry faces a range of complex challenges, including legal uncertainty, overlapping policies between ministries, and potential reductions in plantation areas that could impact national palm oil exports.

According to Fenny Sofyan, Head of Communications at the Indonesian Palm Oil Association (GAPKI), regulatory uncertainty often hinders industry growth despite the increasing global demand for palm oil. She pointed out inconsistencies between government agencies, particularly in policies related to forest and plantation land allocation.

One of the critical issues is the potential return of 2.6 million hectares of palm plantations to state control if land-use planning revisions are enforced. “This could reduce productivity and have wider economic impacts, particularly on exports,” Fenny stated at the Palm Oil Downstream Industry Journalist Workshop, attended by Palmoilmagazine.com in Bogor on Saturday (22/2/2025).

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Policy Overlaps Hinder Global Adaptation

Fenny also noted that regulatory inconsistencies slow down businesses’ ability to adapt to global standards, particularly in environmental and sustainability issues. GAPKI, she emphasized, is actively coordinating with the government to develop strategies in response to shifting policies. “We are compiling industry feedback to align with ongoing policy developments, including preparing for changes in export regulations,” she added.

While conflicts between industry expansion and environmental protection are inevitable, Fenny stressed the need for multi-stakeholder collaboration to create balanced policies. “The government must ensure that regulations do not contradict each other while still prioritizing national interests,” she asserted.

In closing, Fenny reaffirmed GAPKI’s commitment to monitoring policy developments and continuing discussions with key stakeholders. “We hope concrete solutions will be implemented soon to keep Indonesia’s palm oil industry competitive amid global market challenges,” she concluded. (P2)