Imbalance of Development – The Source of Palm Oil Issues

Imbalance of Development – The Source of Palm Oil Issues

Palmoilmagazine, YOGYAKARTA – Chairman of Masyarakat Perkelapasawitan Indonesia (MAKSI), Darmono Taniwiryono said, palm oil in Indonesia has been developing for about 174 years, starting from 4 palm oil seeds were planted in Indonesia; 111 years from mills in industrial scale was developed to produce crude palm oil (CPO), and its derivative; and 36 years from smallholders’ plantations started developing fast.

“Palm oil is now developed and cultivated by the country, the private, and the people. But as it keeps growing, imbalance of development occurs among the three sides,” Darmono said at Symposium and Focus Group Discussion Perkelapasawitan Indonesia 2022 in Yogyakarta, Saturday (14/5/2022), which Palmoilmagazine attended. 

The impact of imbalance of development, as he continued, now happens in Indonesia. At least, there are two impacts, the first, the imbalance of palm oil plantation ownership. It is clearly seen that the government’s plantations do not develop well. The power of the country to manage palm oil business in national scale needs dominant plantation ownership. It is undeniable that Indonesia is the agrarian country.

The second, he continued, the imbalance of production technology. CPO production technology belongs to the big private plantations and the downstream technology (biodiesel and palm cooking oil) 100% belong to the private companies.

“The facts showed, if crude palm oil, palm kernel oil, and other derivative products were birthday cake in the 174th anniversary, the cake owners are totally the private sectors. 100%. They who should and cut the cake into pieces are the cake owners who get 50 million tons,” Darmono said.

It is normal if in the late days, imbalance of power was recently said and happened in palm oil plantations in Indonesia. eventually Indonesia where palm oil plantations develop vast and the biggest CPO producer in the world can be defeated by Malaysia which plays its role as the super power in palm oil sector.

Darmono continued, the complicated issues in palm cooking oil in Indonesia, the export ban are the impacts of imbalance of palm oil plantation ownership and technology.

“The smallholders’ fresh fruit bunch production is useless because many mills cannot buy it. This is also the impact of unprepared CPO production technology which fixes to the people (smallholders) since 36 years ago whose having two hectare – palm oil plantation in average,” he said.  (T2)


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