InfoSAWIT, JAKARTA – To realize economic progress that would reach 7%, Indonesia needs to develop agro sector as one main pillar. One mainstay sector is palm oil plantations. But behind its potential, there are complex challenges to be solved and Indonesia would lead vegetable oil industries in the world.
Expert Board of Tim Kampanye Nasional (TKN) Ganjar-Mahfud, Danang Girindrawardana said one deepest issue that needs serious solution is area certainty (legal). Palm oil industries face challenges in permit, rights and legal certainty. Legal certainty would be crucial to sustainability of the operational. This would have something to do with forest regulation which always raises uncertainty for stakeholders.
The second challenge is the coordination among related ministries and institutions that have different interests from palm oil industries. The coordination among Ministry of Forestry, Trade, Industry, and Labor is not optimally running. Coordinator Minister in Politics, Law, and Security, Professor Mahfud is one figure that keeps doing the best to solve conflicts and escalate synergy among them.
In this context, Coordinator Ministry in Economy has important roles as coordinator in the cabinet. But palm oil industrial complexity needs more integrated approach to solve conflicts of policy and interests.
But Danang said, Indonesia, as the vegetable oil producer in the world, is threatened in its domination. This rank could be no more available if there is no serious attention for palm oil industries. Malaysia as the second biggest palm oil producer has been very close to (replace) Indonesia.
“The issue is not only chaos that could be solved by simple approach. This involves more than 2 million direct and indirect workers in this industry. If there is no serious solution, Indonesia would potentially be not dominant in vegetable oil industries,” he said in Bincang Kompas that InfoSAWIT saw, Friday (19/1/2024).
He continued area legal would be the main focus. Smallholders replanting program (SRP) and bureaucracy reformation in Ministry of Agriculture should be the first thing to do to solve the issues. It also needs concrete thing to confirm the sustainability in this industry.
Bureaucracy reformation is the key to solve coordination among related ministries. The good synergy among the ministries would solve the conflicts of policy and make the industries go forward together.
Danang also mentioned, it is important to support downstream industries. Ministry of Trade, Ministry and Industry need to get synergy to confirm that palm oil downstream products would be having the markets well. “The balance between the upstream and downstream policies would deliver long-term advantages for the industries,” he said. (T2)