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The Ways of Government to Improve Palm Oil Governance



Foto By Miftahurrohman/SawitFest 2021
The Ways of Government to Improve Palm Oil Governance

InfoSAWIT, JAKARTA - Three years ago, the government agreed to publish (a regulation) to fulfill its commitment to get sustainable palm oil plantation development, as the evidence that the Government of Indonesia never ignores environmental issues.

For all these years, palm oil plantations are taken as consideration as the factors of deforestation, the environmental damage, and being dragged to gender issues.

That is why the government published President’s Instruction Number 6 / 2019 about Rencana Aksi Nasional Kelapa Sawit Berkelanjutan (RAN-KSB) in 2019 - 2024.

The strategies to be implement will be conducting by multi-side approach that the government would coordinate and involve stakeholders (businessmen and planters), associations, and civil organizations.

Actually, RAN KSB has five major works to get sustainable palm oil plantation development, they are, the first, working group to data, coordination, and infrastructure reinforcement; the second, planters’ capacity and capability enhancement and replanting acceleration.

The third, environmental supervisor and cultivation working group; the fourth conflict solution and plantation cultivation working group; and the fifth, Indonesian Sustainable Palm Oil (ISPO) certification acceleration and palm oil product market access enhancement.

The five major works are described into 28 program, 92 activity and there should be 118 outcomes. The execution would be running in 14 ministries/institutions, governors, regents/majors in 26 provinces where palm oil develops.

The most important thing to execute RAN KSB is that the roles of every stakeholder, including, the businessmen, civil organizations. The sources of fund would be deriving from National Budget, Regional Budget, non-government organizations, palm oil plantation companies, and other legal sources.

National Development Plan Ministry/National Development Plan Service noted that President’s Instruction Number 6 / 2019 is one legal from palm oil roadmap in 2019 – 2045, which is, ‘Realizing Palm Oil Industries Nationally to be Sustainable as the Main Pillar to Economic Development for The People’s Welfare’.

To realize the vision is about to increase crude palm oil (CPO) production by increasing productivity and post - harvest efficiency in the mills.

It needs to develop downstream industries to get highly additional products, substitute imports and promote in export markets, do research and innovation as the sustainable new progressive industries, develop sustainable and competitive industrial ecosystem and governance, develop more creative human resources in the industries.

From such ways and indicators, they are grouped into 3 (three) main strategies, such as, to escalate productivity, to develop downstream industries, and the last, to reinforce ecosystem, governance, and sustainable capacity building. The 2045 target is that palm oil productivity could be 6,75 tons per hectare or equal to 92,45 million tons of CPO and palm kernel oil (PKO).

Nowadays issue is the low productivity which reaches 3,6 tons/hectares though it could be potential to be 7,5 tons/hectare. This is from the planting of fake or uncertified seeds, because of old trees, and not implementing good agricultural practices (GAP).

Many mills are not efficient. The exports still depend on raw material, which is, crude palm oil or purified oil. Though Indonesia is the biggest palm oil producer in the world, it never has sovereignty to determine and decide the price.

The other issues are the planters’ legal areas, Indonesian Sustainable Palm Oil (ISPO) certificate which many do not get it still, and black campaigns which always take place. The planters’ fresh fruit bunch (FFB) should be in line to be produced in many mills. The planters’ production is the latest to produce. The next thing to do is to escalate the productivity by planting certified seeds, replanting, implementing GAP, precision agriculture, and developing smallholders and smallholders’ corporations.

The question remains, how far is RAN KSB running for the past three years? (T2)

For details, please read InfoSAWIT, April 2022


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