InfoSAWIT, BANDUNG – Palm oil significantly keeps contributing for the economy of Indonesia though it faces challenges in 2023 price. Data released by Central Bureau of Statistic showed that the economic progress in Indonesia in the period reached 5,05 percent. The highest increasing sectors were transportation and warehousing that reached 13,96 percent. But agricultural, forestry, and fishery sectors including palm oil production positively developed 1,30 percent, significantly contributed to the economic progress.
Director of Fund Management and Plan, Palm Oil Plantation Fund Management Agency (PFMA), Kabul Wijayanto thought, palm oil is the biggest contributor for non-oil and export in Indonesia. The 2023 non – oil and gas export reached US$ 242,87 billion within about US$28,45 billion derived from fat and animal/vegetable oils, including palm oil.
Crude palm oil (CPO) price tended to be stable in 2023, not significantly got more expensive than it in the previous year. CPO price at CIF Rotterdam was about at US$ 905/metric ton (MT) – US$ 1.019/MT with the average at US$ 964/MT. meanwhile, CPO export reference price that was decided by Ministry of Trade was at about US$ 723,45 - US$ 955,53/MT with the average at US$ 832,26/MT. Fresh fruit bunch (FFB) was relatively stable in price as the governor’s decision at about Rp 2.180 – Rp 2.718/Kg or Rp 2.425/Kg in average.
The government, Kabul continued, keeps doing its best to develop palm oil sustainably as same as the President’s Instruction Number 6 / 2019 about Rencana Aksi Nasional Kelapa Sawit Berkelanjutan.
“But there are challenges to solve, such as, area legal, low plantation productivity, namely in smallholders’ plantations. The smallholders’ plantation productivity in 2023 just reached 2,58 tons/Hectare, much less than big private and the governmetn’s plantations,” he said when inaugurating focus group discussion (FGD) with the theme Membangun Kelapa Sawit Indonesia yang Berkelanjutan that InfoSAWIT attended in Bandung, Thursday (7/3/2024).
To escalate plantation productivity, the government launched smallholders replanting program (SRP) and infrastructure program. Though SRP realization was not reaching the targets, the government keeps trying to escalate the program to be more effective.
“Infrastructure program would be always increased with the fund allocation decided to deliver helps, such as, seeds, fertilizers, pesticides, agricultural tools, and others for the smallholders,” Kabul said.
“By these, it is hoped that palm oil sector would keep developing sustainably, contributing bigger for the economy of Indonesia, and escalating the smallholders’ welfare in this country. (T2)
