The Long Supply Chain from Smallholders to Mill Decreased Income

The Long Supply Chain from Smallholders to Mill Decreased Income

InfoSAWIT, JAKARTA - There are few men interesting in research, particularly every research will spend lots of money. But it does not happen to Ricky Amukti.

The man who graduated from Faculty of Law, Universitas Brawijaya, Malang is interested in public policy issues. He once compiled research journals in Online Petition Law Arrangement as the people’s participation in publishing public policy in Indonesia.

The young man with glasses is one founder of AJARKITA, a social institution that focuses in education, namely in honorary teachers’ welfare. His interest in policy research delivered him to dig more and more about biodiesel mandatory program which the goal is to reduce green-house gas emission in Indonesia.

Carbon issue is the massive discussion whole over the world namely after world leaders’ agreement to reduce carbon emission to minimize environmental damages from every development, namely in palm oil plantation sectors.

Ricky said, fresh fruit bunch (FFB) supply from smallholders to mill is varied. The long process of FFB supply chain reduces independent smallholders’ profits. “By biodiesel mandatory program, this could be the moment to improve their supply chain,” he who is now as External Collaboration Manager of Traction Energy Asia, recently said to InfoSAWIT.

In general, many mills do not take their materials from independent smallholders namely about their business characteristics. Independent smallholders’ businesses mostly have less than 3 hectares and limited capital/business), their cultivation is traditional within small productivity (FFB harvest could only be less than 3 tons per hectare), FFB quality is low (yield is less than 20%) and their business is not fully efficient (production costs are higher than operational income). (T2)

Source: InfoSAWIT, December 2021