PALMOILMAGAZINE, KENDARI — In a move to enhance the productivity and welfare of smallholder palm oil farmers and MSMEs in Southeast Sulawesi, the Regional Board of the Indonesian Young Entrepreneurs Association (BPD HIPMI Sultra) and the Palm Oil Farmers Union (SPKS) have partnered with state-owned insurer PT Asuransi Jasindo to provide free personal accident insurance for local farmers.
This collaboration serves as a concrete effort to empower small-scale farmers and protect them from various risks. The insurance coverage includes accidental death, permanent disability, and medical expenses, valid for one year and specifically targeted at farmers who have not had access to adequate social protection.
Triawan Rizbar Taha, Chair of BPD HIPMI Sultra, highlighted the significant economic potential of the palm oil sector in the region, calling oil palm a profitable long-term commodity.
“Oil palm trees begin producing within four years and can remain productive for up to 30 years. There’s still a lot of underutilized land in Sulawesi that could be developed for palm cultivation,” he said on Saturday (26/7/2025).
11,000 Households Involved in Palm Oil in Southeast Sulawesi
Preliminary 2024 data from the SultraProv Simdata system indicates that approximately 11,337 households are engaged in palm oil cultivation across the province. Most of them are smallholders and MSMEs who have yet to receive consistent support or protection.
Triawan emphasized that strengthening the national palm oil industry must begin with empowering farmers and improving farmer institutions. Beyond upstream support such as seedling provision and plant care, HIPMI is committed to helping MSMEs develop innovative and value-added palm oil products.
“HIPMI wants to be a driver of grassroots economic growth. This is not just about business—it’s a social mission to improve the welfare of farmers,” he said.
The launch event was attended by several key stakeholders, including the Head of the Provincial Office for Plantations and Horticulture, Dr. La Ode Muhammad Rusdin Jaya; representatives from PT Bina Sawit Makmur, PT Bakrie Sumatra Plantation, the Palm Oil Research Center (PPKS), and the Kendari Branch Manager of PT Asuransi Jasindo.
In his remarks, Dr. La Ode underscored the vital role of farmers and their organizations in developing Indonesia’s palm oil industry.
“Farmers and farmer groups are not merely field workers—they are strategic actors within the palm oil value chain. Strengthening these institutions is key to enabling sustained access to government programs and support,” he noted.
SPKS Pushes for Stronger Human Resources in Palm Oil
Echoing this view, SPKS Indonesia Chair Sabarudin stated that over the past five years, the palm oil industry has become the economic backbone in many regions.
“We need to keep improving productivity, optimizing land use, and upgrading the quality of human resources among palm oil farmers. We thank all stakeholders for supporting this initiative, and we hope it brings real benefits to farmers and the future of Indonesia’s palm oil sector,” he said.
Beyond the insurance program, HIPMI and SPKS also launched a capacity-building initiative focused on small-scale seed production for MSMEs and cooperatives. This program aims to improve access to high-quality palm oil seedlings for farmers across Southeast Sulawesi.
These efforts further reinforce HIPMI’s role as a strategic partner to both the government and the community in developing an inclusive, productive, and sustainable palm oil sector. (P2)
