Special Dialogue CNBC People’s Palm Oil Rejuvenation Only 56%, This Is the Cause News – 1 hour ago

Jakarta, CNBC Indonesia – Chairman of the DPP Advisory Board of the Indonesian Palm Oil Farmers Association (APKASINDO) Moeldoko revealed that the realization of the implementation of smallholder oil palm rejuvenation is currently still low. On the other hand, he added, the downstreaming of the national palm oil industry is currently only 20-30% of the existing potential. It is still dominated by the medium level, namely refined oil.

For this reason, he emphasized, there are 3 challenges that must be resolved to develop the domestic palm oil industry. Namely, the productivity of smallholder palm oil is still low and this is related to the status of oil palm land because many farmers still enter forest areas. Also, regarding business sustainability.

“The productivity of fresh fruit bunches (FFB) from smallholder palm oil is currently still around 0.6-1.2 tonnes per hectare (ha) with a crude palm oil (CPO) content of 2.8-3.4 tonnes per hectare. “Meanwhile, the productivity of the company’s palm oil plantations produces 4.2-4.5 tons of CPO per hectare,” said Moeldoko in a CNBC Indonesia Special Dialogue, ‘Managing the Future of Indonesian Palm Oil’ in Jakarta, Thursday (16/11/2023).


“To encourage an increase in people’s productivity, the first effort that needs to be taken is rejuvenating old and unproductive plants, or what we know as replanting,” added Moeldoko.

He said that President Joko Widodo himself had special attention to this effort and launched a community palm oil rejuvenation program or PSR.

“However, until mid-2023, the PSR achievement will only be 280,620 hectares or only 56% of the stage 1 target of 500 thousand hectares,” he said.

“The biggest obstacle to implementing PSR is because there are still many smallholder oil palm plantations that are in forest areas. Because of this, the government then formed the Palm Oil Task Force,” said Moeldoko.

“He explained that the Palm Oil Task Force is tasked with improving and updating data, improving governance and verifying business permits as part of the efforts in the integrated integration program,” he said.

“And resolving the issue of palm oil in forest areas, efforts to improve data collection and resolve the legality of palm oil in forest areas, as well as guaranteeing the sustainability of the Indonesian palm oil industry in the future, which is marked by the issuance of Indonesia Sustainable Palm Oil (ISPO),” concluded Moeldoko.

[Gambas:Video CNBC]

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