InfoSAWIT, KUALA LUMPUR – Efforts to rejuvenate palm oil plantations in Malaysia and Indonesia in 2023 have shown slow progress, falling significantly short of the targets set by the governments of both countries.
Malaysia has managed to replant only 132,000 hectares (ha), which is 2.3% of the total palm oil plantation area. This figure is an improvement from 97,130 ha (1.7%) in 2022, but it remains far below the government's annual target of 4% or 228,000 ha. Approximately 450,000 ha of palm trees aged 25 years or older require replanting due to a significant decline in productivity after 20 years.
On the other hand, Indonesia, which has set a high target of replanting 2.5 million ha of palm trees by 2025, has only achieved 331,007 ha in 2023 since the launch of its replanting program (PSR) in 2016. The Indonesian government had aimed for PSR to reach 180,000 ha per year, but this target has been reduced to 120,000 ha for 2024.
According to InfoSAWIT from MPOC on Sunday (December 29, 2024), the slow pace of palm oil replanting adds pressure to global palm oil supply. Aging palm trees yield lower harvests, affecting the production capacity of major producing countries.
Despite various programs initiated by the governments of both countries to accelerate the replanting process, challenges such as limited funding, lack of access to superior seeds for farmers, and complicated administrative processes remain significant obstacles.
Industry experts emphasize the need for more proactive policies to encourage farmer participation in replanting programs. Technical assistance, financial incentives, and simplification of administrative procedures are seen as ways to expedite the achievement of targets.
With Malaysia and Indonesia being major global palm oil producers, success in replanting palm oil plantations is a key factor in maintaining supply sustainability and competitiveness in the global market. The governments of both countries are expected to continue seeking innovative solutions to overcome existing barriers and meet the established targets. (T2)
