Slow Progress, the Selling of Palm oil Seed Producers Just Reached 63%

Slow Progress, the Selling of Palm oil Seed Producers Just Reached 63%

InfoSAWIT, JAKARTA - In the last five years, the new palm oil area enlargement nationally decreases. In 2012, the new enlargement reached 12,4%, but in 2016, it decreased to be about 3,1%.

The slow development of palm oil areas really influences the input industries, including superior seed industries. It is proved that since 2012, the seed demands keep decreasing. Based on Directorate of Germination, Ministry of Agriculture, superior palm oil seed markets keep decreasing. If in 2012 the seed markets reached 171 million which had been sold, in 2016 there were only 89,2 million seeds only sold to the markets.


So if the national palm oil seed production reached about 240 million seed, the utility just reached 63% only. This clearly presses palm oil seed industries nationally


In every year, the palm oil seed absorption decreases nationally. In 2012 to 2015, the average decreasing of palm oil seeds reached 24,3% or increased about 20 million seeds per year.


But it was different in 2016 for the palm oil seed absorption increased about 17%. This was the first increasing since 2012.


Head of Production and Biotechnology Division, PT SMART Tbk., Tony Liwang said, the decreasing palm oil seed demands were influenced by decreasing palm oil planting in the new areas, including the influence from the replanting program for the people’s areas which the central government had proposed through the fund from Palm oil Plantation Fund Management Agency (PFMA) in 2016. “Last year, there was few replanting program even though it was our hope,” he recently said in Jakarta.

The palm oil seed absorption in 2012 – 2016 was smaller than it in 2008. The palm oil seed demands in 2008 reached 170,6 million seeds and this surpassed the production. This was the reason to do palm oil seed imports. In the period, there were only 8 palm oil seed producer companies.


The demands kept running in 2009 and 2010, reaching 215 million seeds and 234 million seeds and there were 10 seed producer companies.


Chairman of ‘Forum Kerjasama Produsen Benih Sawit Indonesia, Dwi Asmono said, there were increasing demands for the palm oil areas developed too nationally. But the producers still paid attention to the quality of the seeds by testing them, and following the regulations about developing plantation material variety.


Unfortunately, palm oil seed absorption slowly decreased in 2011. The palm oil seed production was adjusted and decreased to be 233,2 million seeds nationally and the absorption just reached 146,3 million seeds.


The decreasing palm oil seed demands might happen for the peatland and the primer forest moratorium policy which officially run in the midst of 2011. This becomes the factor of decreasing palm oil seed demands though there might be other factors.(T2)

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