PALMOILMAGAZINE, JAKARTA — PT Perkebunan Nusantara IV PalmCo, a subholding of PTPN III (Persero), welcomed dozens of oil palm farmers from across Indonesia to its Jakarta headquarters earlier this week. A total of 42 farmers, representing 38 grower organizations, attended the event alongside leaders of the Association of Smallholder Oil Palm Plantations (ASPEKPIR). They were received by PalmCo’s President Director, Jatmiko Santosa, and Director of Institutional Relations, Irwan Perangin-angin.
“We are grateful that in this month of independence we can meet with representatives of farmers from across the archipelago. You are the modern-day heroes, contributing greatly to the nation through your plantations,” Jatmiko said in his remarks on Sunday (August 17, 2025).
The participants came from Aceh, North Sumatra, Riau, Jambi, South Sumatra, West Java, as well as various regions in Kalimantan and Sulawesi. Over the course of two days, they engaged in direct discussions with the board of directors, explored PalmCo’s digitalization system in Jakarta, and joined technical training and capacity-building sessions in Bandung.
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Jatmiko emphasized the importance of collaboration in tackling challenges within the global vegetable oil industry. He noted that Indonesia’s crude palm oil (CPO) production growth over the past five years averaged only 1.04% annually, trailing behind soybean (2.98%) and rapeseed (6.25%).
“Palm oil’s position as the world’s most productive vegetable oil is at risk. That’s why we must manage palm oil more sustainably to ensure its long-term benefits,” he stressed.
According to him, the key to improving productivity lies in accelerating the national Smallholder Palm Oil Replanting Program (PSR). Many smallholder plantations are dominated by aging trees, limiting yields to just 2–3 tons of CPO per hectare annually.
“Unfortunately, the national PSR realization rate remains low, averaging under 50% per year. PalmCo is committed to expanding and accelerating PSR through various partnership models—from single management systems and the provision of superior seedlings to offtaker schemes supported by company mentoring,” Jatmiko explained.
Several farmers shared success stories from their partnerships with PalmCo. Dista Khoesnul from KUD Tunas Muda said his livelihood has greatly improved. “My income used to be barely enough, but now I can send my children to university,” he shared.
Meanwhile, Hadianto, Chairman of the Makarti Jaya Producers Cooperative, praised PalmCo’s single management model, calling it a national benchmark. He highlighted how his plantation’s yields have consistently surpassed the national average: “In the first year we produced 18 tons per hectare, in the second year 21 tons, and in the third year 23 tons. The company’s promise to guarantee production has proven true,” he said.
Similar expectations were voiced by M. Nur, a smallholder farmer from Aceh, and Andi Akmal from North Luwu. Both hope that productivity among independent farmers working under the offtaker model will also continue to rise. “With PalmCo, partnerships know no boundaries,” they remarked. (P2)
