Non – Plantation Mill – Not Solution to Solve Palm Cooking Oil and FFB

Dok. InfoSAWIT/Ilustration of palm oil mill
Non – Plantation Mill – Not Solution to Solve Palm Cooking Oil and FFB

InfoSAWIT, JAKARTA – Chairman of Gapoktan Tanjung Sehati in Merangin, Jambi Province, Jalal Sayuti said, non – palm oil plantation mill is not the right solution because it would make the smallholders in misery and the smallholders themselves would always be fresh fruit bunch (FFB) traders only.

Per 2 August 2022, Minister of Trade, Zulkifli Hasan attended the ground-breaking of palm oil mill of PT Nusantara Green Energy in Simpang Jelutih, Batin XXIV, District of Batanghari, Jambi Province. It was attended by the Governor of Jambi, Al-Haris and Vice Regent of Batanghari, H. Bahtiar.

The operational of the mill, as a matter of fact, would welfare the smallholders, namely the independent ones. But knowing nowadays condition, non-palm oil plantation mill could not guarantee that the smallholders would be able to sell their FFB production to the mill in person.

The independent smallholders mostly sold their FFB through the middlemen (let us say, agent). It means, the existence of non-palm oil plantation mill would not impact to the smallholders’ welfare, namely the independent ones because they could be only FFB suppliers only.

In District of Batanghari, palm oil plantations laid about 133.000 hectares in total. 52.351 hectares were cultivated by the smallholders. There have been 12 mills. According to Vice Regent of Batanghari, it needs 8 (eight) mills to process every FFB well. Actually, the smallholders’ cooperation should get the opportunity to construct or manage mills so that the smallholders take the advantages by its price.

“The government should actually start to mobilize the smallholders’ cooperation, support the cooperation to be involved in palm oil industries but not deliver chances for the investors (to construct mills). If they operate the mills, they certainly will be getting better lives for they invested,” Chairman of Koperasi Tani Subur in Central Kalimantan, Sutiyana said, as in the official statement to InfoSAWIT recently. (T2)