InfoSAWIT, JAKARTA – The Chairman of Rumah Sawit Indonesia (RSI), Kacuk Sumarto, has emphasized the importance of maintaining the palm oil expansion moratorium while shifting the industry’s focus to intensification through replanting programs. He shared this during a discussion on the future of Indonesia’s palm oil industry.
According to Kacuk, the current productivity of smallholder palm oil plantations remains far from optimal. The average yield is only 2.5 tons per hectare annually, while the maximum potential could reach 5 tons per hectare. “If intensification succeeds, we can increase production capacity to 18–20 million tons per year without expanding new land,” he stated during an interview with InfoSAWIT on Monday (18/11/2024) in Jakarta.
However, he stressed that intensification can only be achieved through replanting efforts. Kacuk highlighted the need for supportive regulations, including land mapping and resolving the legal status of smallholder lands still classified as forest areas. “Many lands already have ownership certificates but are still registered as forest areas. This issue must be resolved so farmers can freely improve their productivity,” he added.
Kacuk advocated for stronger partnerships between companies and farmers in implementing replanting programs. He is optimistic that these collaborations could yield significant results within three years. Nonetheless, he acknowledged that palm oil plantations require time to return to full productivity due to the crop's long growth cycle.
In addition to productivity, Kacuk stressed the importance of maintaining palm oil price stability. He proposed a dynamic export control policy as a solution to balance the market. “When prices are high, exports can be reduced. Conversely, when prices are low, exports can be increased to secure farmers' incomes,” he explained.
He also called for integrated and comprehensive policy recommendations. “Policies have often been fragmented and fail to address core issues. We need solutions that involve all stakeholders, particularly farmers, to achieve meaningful outcomes,” Kacuk emphasized.
As an organization dedicated to advancing sustainable palm oil, RSI is committed to assisting the government in formulating policies that benefit both farmers and the industry. “We will continue to push for strategic steps to ensure Indonesian palm oil competes in global markets while enhancing farmer welfare,” Kacuk concluded.
By prioritizing replanting, intensification, and market stability, RSI aims to drive the development of Indonesia’s palm oil industry toward a more optimal, sustainable, and inclusive future. (T2)
