PALMOILMAGAZINE, SAMARINDA — East Kalimantan has reaffirmed its commitment to transforming the palm oil sector through the Regional Consultation Forum (Forum Konsultasi Daerah/FKD), the preparations for which took place in a coordination meeting held on Tuesday, at the Hevea Meeting Room, East Kalimantan Provincial Plantation Office (Disbun Kaltim). The forum is envisioned as the foundation for developing an inclusive and sustainable transformation roadmap for the region’s palm oil industry.
The meeting was opened by Acting Head of Disbun Kaltim, Andi Siddik, who emphasized the vital role of palm oil as the second-largest contributor to the province’s economy after mining. He highlighted that transformation must go beyond technical improvements and be built through cross-sectoral collaboration.
“We need to align the perspectives of government, businesses, farmers, and development partners so that this transformation not only takes place but also brings broad benefits to communities and the environment,” Andi stated, as quoted by Palmoilmagazine.com from Disbun Kaltim’s official site on Friday (July 11, 2025).
The FKD is designed as a strategic platform to forge mutual understanding and develop actionable steps to improve palm oil governance—particularly at the smallholder level, which continues to face challenges such as low productivity and limited access to sustainable markets.
Representatives from GIZ, including Ade Cahyat and Fajar Lizmawan, participated alongside Disbun Kaltim’s Echelon III officials and members of the Forum for Sustainable Plantation Communication (FKPB). GIZ, as a development partner, is actively supporting this process to strengthen governance and institutional frameworks in the palm oil sector.
According to Ade Cahyat, FKD will not only function as a dialogue space but will also serve as a joint platform to identify best practices, develop strategies for improving farmer livelihoods, and build stronger local institutions.
“We want to promote best practices in supply chains, farmer welfare, and institutional capacity building,” he said. The forum’s outcomes are expected to drive real action on the ground.
Fajar Lizmawan added that the FKD agenda will cover key areas such as production scale, labor, value-added potential, global market trends, and the challenges of maintaining both productivity and sustainability.
Disbun Kaltim data shows that palm oil is the second-largest contributor to the province’s GDP after mining, employing about 12% of the local workforce. However, challenges remain. Smallholder productivity is still below the national average, and only a small portion of plantations have achieved sustainability certification.
To tackle these challenges, the transformation approach will include NDPE principles (No Deforestation, No Peat, No Exploitation), strengthening extension services, enhancing farmer partnerships in the supply chain, and incentive mechanisms for companies committed to sustainable practices.
In closing, Ade reaffirmed GIZ’s commitment to supporting East Kalimantan’s palm oil transformation efforts through the FKD.
“Transformation will only succeed if all stakeholders come together, understand the challenges, and are willing to take real action,” he said.
Andi Siddik echoed the sentiment, expressing hope that FKD would produce concrete recommendations to address the pressing challenges of the palm oil sector.
“We want this transformation to go beyond numbers—to improve quality of life, protect the environment, and secure the future of smallholder plantations in East Kalimantan,” he concluded. (P2)
