InfoSAWIT, JAKARTA – Stakeholders in Indonesia's palm oil sector are advocating for the establishment of a dedicated governing body to manage this strategic commodity. The proposed entity is expected to prioritize the interests of both the industry and palm oil farmers while addressing productivity challenges and ensuring policy synergy.
“There are 16 million farmers and workers involved in the palm oil industry. It’s time for this sector to be managed by a dedicated authority with extensive powers to oversee the entire value chain from upstream to downstream,” said Kacuk Sumarto, Chairman of Rumah Sawit Indonesia (RSI), during a press conference attended by InfoSAWIT on Tuesday (November 19, 2024).
Kacuk explained that the concept of a "super body" for palm oil emerged in 2018 during a meeting at the Palm Oil Research Center (PPKS) in Medan. The idea stemmed from the fragmented governance of the palm oil sector.
“This concept initially came from our experience operating in North Sumatra. Our aim is to ensure that this trillion-rupiah industry is managed by a strong, unified body, ideally reporting directly to the President,” he stated.
Kacuk criticized the existing Indonesian Palm Oil Board (DMSI) for its lack of effectiveness. “Why is DMSI paralyzed and unable to act? It’s because too many ministers and directors-general are involved in its regulation, making it inherently ineffective,” he remarked.
Given this scenario, Kacuk and other proponents believe Indonesia needs a "super body" with "super powers" to govern the palm oil sector comprehensively. Such a body should have the authority to coordinate technical ministries in support of national palm oil policies through integrated governance.
The proposed body, Kacuk emphasized, must be led by professionals with deep expertise in palm oil. "We are entrusting the management of 16.8 million hectares of palm oil plantations and millions of farmers to this body, so it must be filled with capable and influential individuals,” he added, noting that price management and other operational aspects have already been pre-defined.
During the inaugural congress of RSI, Kacuk Sumarto of Paya Pinang Group was unanimously elected as Chairman for the 2024–2027 term. Irwan Perangin Angin from PTPN was appointed as Vice Chairman.
Despite being a new organization, RSI already represents 1.72 million hectares of plantations through its 77 members, which include plantation companies, fertilizer producers, downstream industries, and farmer cooperatives. “We will oversee the implementation of large-scale People’s Palm Oil Rejuvenation (PSR) programs, particularly for the plantations of farmers partnered with RSI member companies,” Kacuk concluded. (T2)
