PALMOILMAGAZINE, YOGYAKARTA – President Director of PTPN IV PalmCo, Jatmiko Santosa, has shed light on the major challenges confronting Indonesia’s palm oil industry. Speaking at an industry forum in mid-July 2025, Jatmiko emphasized that multi-stakeholder collaboration and digital transformation are critical to maintaining the sector’s competitiveness and long-term sustainability.
Despite palm oil being one of Indonesia’s key commodities and a major contributor to the national economy, Jatmiko noted that its productivity has stagnated over the past decade.
“If we look at the trend over the last 10 years, our annual production growth (CAGR) is only around 1%. There’s been no significant breakthrough. Meanwhile, competitors like rapeseed have shown sharp growth, with a CAGR of 6%,” he said, as quoted by Palmoilmagazine.com via PTPN IV PalmCo’s official Instagram account, Sunday (July 27, 2025).
He also pointed out that Indonesia’s palm oil prices are now higher than rapeseed, which previously had a more premium market value. This shift, according to Jatmiko, is a signal that the industry must undergo a thorough evaluation to stay competitive in global markets.
To address this, Jatmiko asserted that collaboration is essential. As a state-owned enterprise, PalmCo recognizes its responsibility to work hand-in-hand with all stakeholders.
“We cannot move forward alone. As a BUMN owned by the people, we must partner with everyone—from village cooperatives and independent farmers to digital solution providers,” he stressed.
Managing nearly 600,000 hectares of plantation land, Jatmiko believes that boosting productivity is impossible without embracing digital technologies. PalmCo is actively pursuing digitization across its supply chain and operational processes to drive efficiency and transparency.
Beyond productivity, PalmCo is also firmly committed to sustainability. Jatmiko revealed that the company’s dedication to Environmental, Social, and Governance (ESG) principles has gained international recognition.
“Today, we’re ranked as the second-lowest risk plantation company globally, according to an international body. That recognition comes from our strong ESG commitment,” he concluded.
By strengthening cross-sectoral partnerships and embracing technological innovation, PalmCo remains confident that Indonesia’s palm oil industry can thrive and adapt amid an increasingly dynamic global landscape. (P2)
