Indonesia plays an important role in the palm oil industry, Mill Capacity Reached 84,8 Million Tons

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PALMOILMAGAZINE, JAKARTA – According to Khadikin, the Policy Analysis Associate Coordinator at the Ministry of Economy, there are a total of 2,511 palm oil plantation companies operating in Indonesia across 26 provinces. These companies have a combined production capacity of 84.8 million tons. However, their utilization rate stands at approximately 55%, resulting in the production of 47 million tons of Crude Palm Oil (CPO).

“Indonesia is the number one palm oil producer in the world within its markets 55% in the globe,” he said in Focus Group Discussion (FGD) SAWIT BERKELANJUTAN VOL. 14, with the theme “Mengintegrasikan Industri Hulu Hingga Hilir Sawit Berkelanjutan”, that InfoSAWIT conducted with the supports from Palm Oil Plantation Fund Management Agency (PFMA), Wednesday (7/6/2023) in Jakarta.

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He also said, about 60% palm oil products in Indonesia were for the exports, which means, Indonesia contributed to provide consumption goods, food, and energy for the world. “With the prediction of the world population about 9,8 billion in 2050, the crowd people in urbans, as it is predicted, would get additional needs on vegetable oil up to 200 million tons in the future. Palm oil can supply the numbers because it is the most efficient and productive vegetable oil of all,” Khadikin said.

Within average production 5 tons per hectare, palm oil plantations can be planted in a four million – hectare of agricultural areas, save hundreds million areas to plant other needs (commodities). Khadikin also said, plantation industries play important roles for agro – industries. In the first semester of 2022, of the total agro-industries export that reached US$ 25,12 billion, 56,6% were dominated by plantation industries.

This is the same with the vision of Visi Hilirisasi 2045: Indonesia would become the producers and consumers’ center of palm oil derivative products in the world to become CPO price setter in the world through palm oil downstream industrial roadmap nationally by implementing productivity enhancement, downstream program (oleofood, oleochemical, biofuels), improving ecosystem, governance, and capacity building. (T2)

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