InfoSAWIT, PALANGKA RAYA - On October 18, 2024, the President signed Presidential Regulation Number 132 of 2024, replacing Presidential Regulation Number 61 of 2015. This new regulation shifts the focus of the management of the Palm Oil Plantation Fund Management Agency (BPDPKS) from solely palm oil to also include cocoa and coconut commodities.
"In my opinion, as an Economic Observer in the Plantation Sector, this step demonstrates the government's commitment to not only focus on palm oil but also to develop the significant potential of cocoa and coconut commodities," said Rawing Rambang, as reported by InfoSAWIT from Borneonews on Wednesday, January 22, 2025.
The Executive Secretary of GAPKI Central Kalimantan Branch added that Indonesia has great potential to become a major producer of cocoa and coconut in the world. Cocoa is well-suited for cultivation in Sulawesi, while coconut can be developed in Sumatra, Kalimantan, Sulawesi, and Maluku. This diversification of commodities is expected to enhance both regional and national economies.
Nevertheless, the development of palm oil remains a primary focus, given that Indonesia is the world's largest producer of palm oil, with plantation areas reaching 16.8 million hectares in 2023. Approximately 40.51 percent of this plantation area consists of smallholder palm oil farms that require attention from BPDP funds.
According to Rawing, a former Head of the Plantation Office of Central Kalimantan Province, effective fund management and coordination are essential to ensure the sustainability and welfare of palm oil farmers. The government has designed comprehensive programs and plans for the development of strategic plantation commodities, including palm oil, cocoa, and coconut.
"Thus, this diversification of commodities will not only increase farmers' incomes but also strengthen the national economy," said Rawing Rambang, who is also a lecturer at Christian University of Palangkaraya.
Rawing emphasized the importance of proper oversight and coordination in the use of BPDP funds to achieve these goals. The programs designed by the government are expected to run smoothly and provide maximum benefits for farmers and the national economy.
"With this change, it is hoped that Indonesia can optimize the potential of its plantation commodities, strengthen its position as the largest palm oil producer, and increase contributions from cocoa and coconut. This step is part of the government's efforts to improve farmers' welfare and strengthen the national economy through the diversification of strategic plantation commodities," he added. (T2)