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Upstream – Downstream Integrated Program and Technology Innovation: The Keys to Develop Palm Oil Industries Nationally



Doc. of Screenshot/Chairman of Rumah Sawit Indonesia (RSI), Kacuk Sumarto.
Upstream – Downstream Integrated Program and Technology Innovation: The Keys to Develop Palm Oil Industries Nationally

InfoSAWIT, JAKARTA – Chairman of Rumah Sawit Indonesia (RSI), Kacuk Sumarto said that palm oil industrial development would need supports from some aspects, such as, machines, tools, and others. In the production process (palm oil mill), it would not be only machines and other important tools, but also spare parts or helping tools would be significant to get the operational run well.

He said, it would be significant to get the supports from skillful human resources, good governance, and available and affordable logistics. “The infrastructures may not be available. This makes the governance difficult,” Kacuk said in a webinar that InfoSAWIT joined, Thursday (11/7/2024). This also covered available, stable, and affordable power.

Besides infrastructures and human resources, Kacuk said that it would be important to get supporting policy and regulation. The good finance and marketing would also support the whole business. In 2022, palm oil industries faced the challenges about policy that delivered something to the operations in the mills in total. “The policy that related to one of many processes would have something to do with palm oil business process,” he said.

He also said palm oil upstream – downstream integrated program should be running in a whole. “The integration would be significant to make sure that every phase in the production process would support one to another and get qualified products,” he said. The integrated program should also involve many aspects, starting from the plantations to the mills.

As part of the innovation, some mills are testing demineralization process to get premium and qualified crude palm oil stably even though it would be storage for some time. “By having demineralization process, the fatty acid in CPO would not escalate even though it is stored for months,” Kacuk said. The innovatioin should solve the product stability issue that many industries are facing.

He also emphasized there should be sustainable innovation and escalating palm oil upstream – downstream integrated program to face the future challenges. “Good innovation and integration would confirm that palm oil industries would remain competitive and sustainable,” Kacuk said. (T2)


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