PALMOILMAGAZINE, PEKANBARU – A team from the Indonesian Legislature’s Commission VI, led by Jon Erizal, visited PTPN IV Region III in Pekanbaru, Riau Province. The purpose of the visit was to directly review the development of palm oil plantations and industry in the province, identify the challenges faced, and explore potential solutions.
As palm oil is a key export commodity for Indonesia, it was the main focus of the meeting. Jon Erizal emphasized the importance of enterprises, particularly PalmCo, in supporting the country’s export economy.
“PalmCo is the holding company for enterprises in the palm oil plantation sector. We discussed various strategies for PalmCo to enhance its contribution to national revenue. In the future, Indonesia’s economy is expected to grow and must be supported by strong and sustainable revenue sources,” he said, as quoted by Palmoilmagazine.com from Parlementaria on Saturday, June 22, 2024.
Jon also said that PalmCo would get big potential in land ownership that could be more than 700 thousand hectares, and 586 thousand hectares would be for palm oil plantations. Nevertheless, he emphasized PalmCo needs to develop its ability to develop downstream sectors, that other private companies have operated.
“The better downstream sectors would significantly deliver multiplier effects for our economy nationally. PalmCo just operated palm cooking oil. There are big potentials to get other higher downstream sectors, including cosmetic industries,” he said.
He also mentioned, it would be significant to get supporting regulations to accelerate downstream industries, it needs massive investment to develop such industries. “We would encourage that PalmCo would get reinforcement and leeway of regulation to support the profitable downstream sectors. This would massively deliver additional values for our palm oil industries,” he said.
As the conclusion in the visit, he said that Indonesian Legislators would keep monitoring everything and innovation that PalmCo promised. “We do hope the right innovations, our Enterprises, particularly in palm oil sector would develop and contribute significantly for our economy nationally,” Jon said.
It is hoped the visit would deliver valuable inputs for the government’s policies to reinforce palm oil sector, as the main pillar for economic progress in Indonesia. (P2)
