PALMOILMAGAZINE, KUTAI TIMUR — The palm oil industry continues to drive economic growth in northern East Kalimantan, as highlighted during Governor Dr. H. Rudy Mas’ud’s (Harum) visit to Sinar Mas Group’s plantation in Wahau District, East Kutai Regency, on Saturday (Sept 6).
Governor Harum underscored the importance of strong partnerships between major corporations and local farmers. He expressed hope that Sinar Mas would further support surrounding communities by distributing high-quality palm seedlings through its Corporate Social Responsibility (CSR) programs to farmer groups and cooperatives.
“If each farmer manages an average of five hectares with an income of IDR 4 million per hectare, that means they could earn up to IDR 20 million per month. If this becomes a reality, poverty will no longer exist here,” he said optimistically, as reported by Palmoilmagazine.com citing BerauPost on Thursday (Sept 11, 2025).
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Sinar Mas Region East Kalimantan, operating through PT Kresna Duta Agroindo and PT Tapian Nadenggan, currently manages a total of 42,742 hectares of land. Of this, 25,158 hectares are nucleus estates, while 17,710 hectares are cultivated under plasma and independent partnership schemes.
According to Sinar Mas Region Controller, Hendra Oldy Charli Mapasa, the company is working with seven plasma cooperatives covering 6,888 hectares and involving 3,215 farmers. Additionally, 17 independent cooperatives cultivate 10,822 hectares, representing more than 5,000 farmers.
“These partnerships deliver tangible results. Plasma farmers earn around IDR 3 million per hectare per month, while independent farmers reach up to IDR 4 million. Every month, financial circulation in local banks surpasses IDR 100 billion, not including transactions in traditional markets and local shops,” Hendra explained.
These figures illustrate how the palm oil sector not only serves as a major export driver but also acts as a powerful engine for regional economies. The circulation of billions of rupiah monthly boosts household purchasing power, creates jobs, and improves farmer welfare.
Governor Harum’s visit was also attended by Member of Parliament Hj. Sarifah Suraidah Harum, East Kalimantan Regional Secretary Sri Wahyuni, members of the provincial legislature, local government officials, and the management of Sinar Mas Region East Kalimantan. Their presence underscored the synergy between government, business, and communities in advancing palm oil–based agribusiness development. (P2)
