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Boosting Smallholder Palm Oil Productivity to Support the B50 Biodiesel Mandate 



InfoSAWIT Documentation/ From left to right: Director of PTPN Holding (Persero), Dwi Sutoro; Deputy II for Food and Agribusiness Coordination at the Coordinating Ministry for Economic Affairs, Dida Ga
Boosting Smallholder Palm Oil Productivity to Support the B50 Biodiesel Mandate 

InfoSAWIT, JAKARTA – Enhancing production and productivity in smallholder palm oil plantations without expanding land use is key to Indonesia achieving food and energy self-sufficiency. By adopting intensification measures, the nation’s palm oil productivity can be significantly increased. 

Director of PTPN Holding (Persero), Dwi Sutoro, revealed that the current average productivity of national palm oil plantations remains relatively low at around 3 tons of crude palm oil (CPO) per hectare annually.

“With a total national palm oil plantation area of 16.2 million hectares, annual production ranges between 48-50 million tons. If the average productivity could be raised to 5 tons per hectare, national palm oil production could reach 80 million tons,” Dwi said during the seminar “Achieving Food, Energy, and Economic Sovereignty Through Palm Oil Plantations Towards Indonesia Gold 2045”, organized by Rumah Sawit Indonesia (RSI) and attended by InfoSAWIT on Monday (18/11/2024) in Jakarta. 

Dwi further explained that some plantations, including those managed by PTPN, have already achieved productivity levels of up to 6 tons of CPO per hectare annually. However, the greatest challenge lies with smallholder plantations, which cover approximately 6 million hectares or 42% of the total national plantation area. 

“Given the critical role of smallholders, PTPN is focusing on assisting the government through the smallholder palm oil replanting program. Next year, we aim to replant 40,000 hectares of plasma plantations,” he stated. 

Dwi also urged private companies to participate in supporting the replanting efforts. He expressed hope that RSI, under the leadership of Chairman Kacuk Sumarto, could encourage its members to contribute to the program. “Ideally, replanting should cover 4% of the plantation area annually, considering the average productive lifespan of palm oil trees is 25 years,” Dwi added. 

The replanting program is a vital effort to improve smallholder palm oil plantation productivity. Through this initiative, Indonesia can not only support biodiesel programs such as B50 but also strengthen its national energy independence.

The seminar also marked the opening of RSI’s first congress, underscoring the strategic role of palm oil in driving energy and economic transformation toward Indonesia Gold 2045. (T2)


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