PALMOILMAGAZINE, SERDANG BEDAGAI – Commission VII of the Indonesian House of Representatives (DPR RI) has voiced strong support for community-based palm oil downstreaming initiatives. This was expressed during the Commission’s recess working visit to North Sumatra, which included witnessing the signing of a Cooperation Agreement between PalmCo and Koperasi Geral Nusantara at the Adolina Palm Oil Mill in Serdang Bedagai Regency on Thursday, April 10, 2025.
The agreement marks an innovative step in utilizing old palm trunks from replanting programs as raw materials for palm sugar production. Lamhot Sinaga, Vice Chairman of Commission VII, emphasized that this initiative not only adds economic value to plantation waste but also opens up new income opportunities for local communities.
“This is a clear example of downstreaming that truly benefits the people. We appreciate initiatives like this that allow communities to take part in the palm oil value chain—not just as farmers, but also as industry players,” Lamhot stated, as quoted by Palmoilmagazine.com via Parlementaria on Friday, April 11, 2025.
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Lamhot underlined that palm oil is a key national commodity that significantly contributes to economic growth, job creation, and farmer welfare. However, the industry is currently under heavy pressure, especially following the U.S. decision to impose up to 32% tariffs on palm oil derivatives.
“Labor-intensive industries like palm oil now face double threats—from non-tariff barriers to negative campaigns often laced with double standards from other countries. This puts the industry’s sustainability and millions of jobs at risk,” said the Golkar Party politician.
Given these challenges, Lamhot urged the government to consider reciprocal measures—fair counter-policies against countries that implement discriminatory actions against Indonesian products. Such steps, he added, are crucial to strengthen Indonesia’s bargaining position in international trade forums.
Commission VII also extended appreciation to all parties involved in realizing the partnership initiative. They hope this collaborative model can be replicated in other regions to strengthen a community-based national palm oil sector.
“This is not just a local project—it’s a powerful example of how downstreaming can directly empower people. If scaled up, Indonesia won’t just be a palm oil producer but also a leading player in its derivative industries,” Lamhot concluded. (P2)
