PALMOILMAGAZINE, BANDUNG – Despite facing challenges in pricing throughout 2023, palm oil continued to significantly contribute to Indonesia’s economy. Data from the Central Bureau of Statistics revealed that Indonesia’s economic growth for the period stood at 5.05%. Notably, the transportation and warehousing sectors experienced the highest growth at 13.96%.
However, the agricultural, forestry, and fishery sectors, including palm oil production, also positively contributed to the economic progress, growing by 1.30%.
Kabul Wijayanto, Director of Fund Management and Planning at the Palm Oil Plantation Fund Management Agency (PFMA), emphasized that palm oil remains the largest contributor to non-oil exports in Indonesia. In 2023, non-oil and gas exports reached US$242.87 billion, with approximately US$28.45 billion coming from fats and animal/vegetable oils, including palm oil.
Also Read: Reached US$ 36,55 Billion, Palm Oil Contributed 81 Percent of Total Export Values
Crude palm oil (CPO) price tended to be stable in 2023, not significantly got more expensive than it in the previous year. CPO price at CIF Rotterdam was about at US$ 905/metric ton (MT) – US$ 1.019/MT with the average at US$ 964/MT. meanwhile, CPO export reference price that was decided by Ministry of Trade was at about US$ 723,45 – US$ 955,53/MT with the average at US$ 832,26/MT. Fresh fruit bunch (FFB) was relatively stable in price as the governor’s decision at about Rp 2.180 – Rp 2.718/Kg or Rp 2.425/Kg in average.
The government, Kabul continued, keeps doing its best to develop palm oil sustainably as same as the President’s Instruction Number 6 / 2019 about Rencana Aksi Nasional Kelapa Sawit Berkelanjutan.
“But there are challenges to solve, such as, area legal, low plantation productivity, namely in smallholders’ plantations. The smallholders’ plantation productivity in 2023 just reached 2,58 tons/Hectare, much less than big private and the governmetn’s plantations,” he said when inaugurating focus group discussion (FGD) with the theme Membangun Kelapa Sawit Indonesia yang Berkelanjutan that Palmoilmagazine.com attended in Bandung, Thursday (7/3/2024).
To escalate plantation productivity, the government launched smallholders replanting program (SRP) and infrastructure program. Though SRP realization was not reaching the targets, the government keeps trying to escalate the program to be more effective.
“Infrastructure program would be always increased with the fund allocation decided to deliver helps, such as, seeds, fertilizers, pesticides, agricultural tools, and others for the smallholders,” Kabul said.
“By these, it is hoped that palm oil sector would keep developing sustainably, contributing bigger for the economy of Indonesia, and escalating the smallholders’ welfare in this country. (T2)
