PALMOILMAGAZINE, JAKARTA – Successfully developing oil palm plantations help develop rural areas, providing sustainable socio-economic benefits. With a focus on sustainable development, this growth not only supports the company’s welfare but also creates a solid economic foundation for the surrounding community.
As part of the vision of inclusive development, the management of oil palm plantations will continue to be carried out by prioritizing the balance between economic growth and community welfare. The sustainability of the palm oil business in synergy with the community is a commitment to support a better and more prosperous rural economy.
Dedi Junaedi, Vice Chairman of the Indonesian Plantation Business Association or Gabungan Pengusaha Perkebunan Indonesia (GPPI), expressed the importance of collaboration between various parties to advance the palm oil sector and support the welfare of smallholders, especially in transmigration areas, and emphasized the role of palm oil as a significant regional economic driver.
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Dedi explained that the palm oil sector has become one of the main sources of income and employment in many regions, as well as the second largest foreign exchange earner after coal. However, despite its economic potential, the palm oil industry faces challenges in terms of productivity, legality, and energy security. The government is currently working to strengthen the sector through the implementation of the B50 biodiesel program as well as supporting the replanting of smallholder palm oil.
According to Dedi, one of the main obstacles faced by independent oil palm smallholders is the lack of access to superior seeds and sustainable cultivation facilities. “The quality of seeds greatly affects the yield, and unfortunately many smallholders use asphalt seeds or less quality seeds,” he said, when opening the Sustainable Palm Oil FGD Vol 16, entitled ‘Sustainable Oil Palm Plantations Growing the Economy of Rural Communities’, held by InfoSAWIT media supported by BPDPKS, Friday (1/11/2024) in Jakarta attended by Palmoilmagazine.com.
He also emphasized that the high initial investment in oil palm plantations can be a burden for oil palm smallholders, especially if the seeds planted are not productive.
GPPI also encourages sustainable certification such as RSPO and ISPO as standards to enter the export market and guarantee better selling prices. However, funding challenges still prevent independent smallholders from meeting these certification standards. Dedi said, “Currently, assistance from the government is very important to strengthen institutions and equip smallholders with knowledge and best cultivation practices.”
In addition, GPPI encourages the formation of cooperative institutions among oil palm smallholders so that they can have a better bargaining position in selling their crops. “Independent oil palm smallholders need to be upgraded, not only as sellers of fresh fruit bunches, but also to be able to produce processed palm oil products that have added value,” Dedi added.
In the future, GPPI plans to accelerate the implementation of a carbon certification program for palm oil plantations, which is expected to support the government’s target in reducing national carbon emissions. Dedi concluded his statement by emphasizing the importance of collaboration between the central and regional governments, as well as all stakeholders to ensure the sustainability of the palm oil sector. GPPI hopes that these efforts will improve the welfare of oil palm smallholders and make Indonesian palm oil a leading commodity that is globally competitive. (P3)
