InfoSAWIT, BOGOR – The Indonesian palm oil industry is facing a range of complex challenges, including legal uncertainty, overlapping policies among ministries, and the potential reduction of plantation areas, which could adversely affect the national palm oil export performance.
Fenny Sofyan, the Head of Communication at the Indonesian Palm Oil Entrepreneurs Association (GAPKI), stated that alongside the increasing human demand driven by global population growth, regulatory uncertainty within the country often acts as a significant barrier.
Fenny pointed out the inconsistency of policies among government agencies, particularly regarding regulations related to forest and plantation area allocations. A critical issue is the plan to return 2.6 million hectares of palm oil plantation area to the state if the spatial planning revision policy is implemented. “This could potentially reduce productivity and trigger broader economic impacts, especially on exports,” Fenny remarked during the Palm Oil Downstream Industry Journalists Workshop, attended by InfoSAWIT, in Bogor on Saturday (February 22, 2025).
According to her, overlapping regulations also slow down the adaptation process for businesses to meet global standards, such as environmental and sustainability issues. Fenny emphasized that GAPKI continues to coordinate with the government to formulate strategies in response to policy dynamics. “We are processing inputs to align with the policies being crafted by the government, including preparing for anticipated changes in export regulations,” she added.
She acknowledged that conflicts of interest between industrial expansion and environmental protection often arise. However, Fenny stressed the importance of multi-stakeholder collaboration to create fair policies. “The government needs to ensure that regulations do not conflict while still prioritizing national interests,” she asserted.
In conclusion, Fenny stated that GAPKI will continue to monitor policy developments, including the outcomes of further discussions with stakeholders. “We hope that concrete solutions can be implemented soon so that the palm oil industry remains competitive amid tight global competition,” she concluded. (T2)
