InfoSAWIT, JAKARTA - Independent smallholders face many same challenges in their plantation cultivation, such as, supply chain from the plantations to the mills, bad infrastructures, low productivity, lack of knowledge and skills to get good agricultural practices, limited access to the latest technology in agriculture practices, the lack of supports in certification process.
Director of Palm Oil Plantation Fund Management Agency (PFMA), Eddy Abdurrachman said these are urgent to be solved by having the most effective solution.
How to solve the issues? Eddy said, it is significant for the Government of Indonesia to get upstream to downstream integrated strategies, such as, by implementing biodiesel mandatory program which has been running since 2015 to reinforce bargaining position of Indonesia and reduce export dependence.
“By having more demands on palm oil up to 10 to 11 million tons per year in biodiesel production, of course, this would help absorb fresh fruit bunch (FFB) production from independent smallholders,” he said in a discussion in Jakarta that InfoSAWIT did attend by the late of October 2023. (T2)