PALMOILMAGAZINE, MEDAN – North Sumatera Province has demonstrated its commitment to supporting strategic investments in the palm oil industry’s downstream sector (SID). The province boasts significant potential in plantations, forestry, and wood resources.
Arief S. Trinugroho, Secretary of North Sumatera Province, announced a coordination meeting at the Diamond Ballroom, Cambridge Hotel in Medan on Thursday, 18 July 2024, to further discuss SID support.
In 2023, North Sumatera’s palm oil plantations spanned approximately 1,353,515 hectares, producing 5,453,030 tons. The province ranks as the fourth largest palm oil producer in Indonesia, following Riau, Central Kalimantan, and West Kalimantan.
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“North Sumatera offers extensive palm oil plantations, numerous rivers suitable for hydropower, infrastructure, ports, and industrial zones. These comprehensive resources position North Sumatera as a leading player in Indonesia’s palm oil industry,” said Arief S. Trinugroho, as reported by Palmoilmagazine.com on Friday, 19 July 2024.
He also emphasized it would be important to get downstream investment to get new chances to escalate commodity additional values, create employment, and encourage economic development. Arief reminded palm oil industrial downstream development should be the same with the local participation and welfare to avoid every negative impact and social conflict.
Special Staff in Bureaucracy Reformation Ministry of Investment/Investment Coordination Board, Azhar Lubis said that the meeting would be about to get inputs from every regulation and socially impacts from downstream program. Lubis thought the downstream program could deliver impacts economically and welfare for the people.
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In 2023 North Sumatera was one biggest contributor for Indonesia in downstream sectors that reached Rp 39,1 trillion both from foreign investment and domestic investment.
In the meeting, there were Head of Central Bureau of Statistic, Asim Saputra; Head of Investment Agency and One Stop Service, Faisal Arif Nasution; Head of Labors, Ismael Parenus Sinaga; Asosiasi Petani Kelapa Sawit Indonesia (Apkasindo), Indonesian Palm Oil Association, Gabungan Industri Minyak Nabati and Himpunan Pengusaha Muda Indonesia (HIPMI) from North Sumatera Province. (P2)