IPOSC Advocates Increased Productivity for Smallholder Plantations

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From left: POPSI Chairman Pahala Sibuea, POPSI Founder Gamal Nasir presented souvenirs to the Vice Governor of Jambi Abdullah Sani at the third IPOSC event in Jambi. Photo by: palmoilmagazine.com

PALMOILMAGAZINE, JAMBI – Gamal Nasir, the Chairman of the Persatuan Organisasi Petani Sawit Indonesia (POPSI) Developer, emphasized the significance of fostering synergy to enhance the development of smallholders, given the expansive nature of their plantations.

Out of the total palm oil plantations spanning approximately 16.3 million hectares, smallholders, comprising both plasma and independent farmers, cultivate around 6.1 million hectares. This substantial contribution has the potential to stimulate the national economy.

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Data from the Central Bureau of Statistics in 2021 indicates a noteworthy surge in the exports of crude palm oil (CPO) and its derivatives, reaching USD 27.6 billion. This marked a remarkable 58.79 percent increase compared to the preceding year, reflecting substantial growth over the past five years.

Also Read : Pahala Sibuea : Strengthening Smallholders Institutions for Sustainable Palm Oil Production

“In this case, the smallholders also contributed to the revenue,” he said in the 3rd Indonesia Palm Oil Smallholder Conference and Expo (IPOSC) with the theme “Optimalisasi Sawit Rakyat Sebagai Penghasil Devisa di Pusaran Tata Kelola Sawit Berkelanjutan”, that Palmoilmagazine.com attended, Tuesday (28/11/2023) in Jambi.

On the other hand, he hoped that the smallholders would focus on escalating fresh fruit bunch (FFB) productivity to increase their income and would have shares in palm oil mill. This is important so that the smallholders have sense of belonging in the mill (company) and would have motivation to maintain the supply – just like what the company wants. “The smallholders would be difficult to develop mill,” Gamal said.

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Not only that, having good partnership with the company, they could escalate their plantation productivity. For information, cultivation that runs between company and smallholders would be different and the plantation productivity would be too.

“As we know, smallholders’ plantation productivity reaches 10 tons FFB per hectare per year but the companies can produce 18 to 20 tons FFB per hectare per year. By having good partnership, the smallholders could escalate their plantation productivity which eventually escalates their welfare,” Gamal said.

Chairman of POPSI, Pahala Sibuea said that escalating plantation productivity would be the same with escalating smallholders’ economy. That is why it needs good cooperation between both parties with the support from (regional) governments. (T2)

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