PALMOILMAGAZINE, PONTIANAK – The Governor of West Kalimantan, represented by Assistant II for Economy and Development, Ignatius IK, highlighted the importance of collaboration and innovation in palm oil development during his speech at the fourth Indonesian Palm Oil Smallholder Conference & Expo (IPOSC) 2024. He expressed his appreciation for all parties contributing to the growth of the palm oil sector in the province.
Ignatius emphasized that the plantation subsector, particularly palm oil, plays a strategic role in both the regional and national economies. “The plantation sector significantly contributes to GDP, revenue, and the supply of raw materials for industry,” he stated. However, he also pointed out the challenges the industry faces, including the global economic crisis, deforestation, and environmental degradation often linked to the palm oil industry.
West Kalimantan is Indonesia’s largest palm oil producer, with a total plantation area of approximately 2,140,155.55 hectares and a production output of 6,452,552.70 tons of crude palm oil (CPO) in 2023. Smallholders account for 29% of these plantations, with potential for further growth to meet rising demand.
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Ignatius stressed that sustainable palm oil production is crucial to remain competitive in global markets. He also reminded attendees that international scrutiny, especially from the European Union, is increasing. The EU’s Deforestation Regulation will require exporters to verify that their products are not sourced from deforested areas.
To deliver answer for the challenges, the Government of Indonesia, including West Kalimantan adopted ISPO (Indonesian Sustainable Palm Oil) certificate as sustainable standards. “West Kalimantan has regional action plans of sustainable palm oil that is regulated in the Regulation of Governor of West Kalimantan Number 3 / 2020,” Ignatius said when inaugurating the conference where Palmoilmagazine.com attended in Pontianak
Besides discussing sustainability issue, he also said about tenant conflicts that always happened in palm oil sectors. This, he continued, might happen for the area ownership gap, unclear borders of forest regions, and the lack of coordination to publish area permit. That is why Ignatius encouraged to get integrated area data system to cultivate palm oil plantation more sustainable.
Smallholders replanting program (SRP) would be the main priority of the government to increase smallholders’ plantation productivity. In the province, SRP had been realized up to 18.573 hectares by 2023 with the targets to go about 67.855 hectares.
Ignatius hoped by the 4th IPOSC 2024, every stakeholder would reinforce to cooperate, encourage sustainable palm oil development both in the province and many regions. “We are optimist with multi – party encouragement, this tough work would be running well,” he said.
Chairman of Persatuan Forum Petani Kelapa Sawit Jaya Indonesia (POPSI), Pahala Sibuea emphasized it would need innovation to escalate smallholders’ plantation production. Moreover, the smallholders faced complex issues. “We have to innovate and take advantages on every available facility. It needs to reinforce partnership among the smallholders, the government, and the private to encourage the sustainability of the industry,” he said.
He also mentioned there are many chances that the smallholders did not take for advantages, namely in technology and financing access.
The two day – conference, Sibuea continued, would discuss many issues, for instance, to clarify partnership system between the smallholders and companies. He acknowledged that nowadays partnership was not clear yet and would need perfection to deliver more advantages for the smallholders.
One program that was discussed in the conference was SRP financing through Palm Oil Plantation Fund Management Agency (PO PFMA). It was officially got increased to be Rp 60 million/hectare from the previous Rp 30 million/hectare.
Sibuea took every smallholder to positively think and take advantages from every available chance. “We have to innovate and create to make palm oil sector go forward in Indonesia,” he said.
In the fourth Indonesian Palm Oil Smallholder Conference & Expo 2024 (IPOSC), abuot 600 smallholders from many regions attended, such as, from Jambi and Aceh. It was about to meet every smallholder, academy, and professional to discuss the related issues about palm oil governance in Indonesia. (P2)
