Palm Oil Industry: Realities and Challenges

Background

The palm oil sector is one of the strategic sectors that contribute to the national economy. In 2017, the palm oil sector contributed IDR 320 trillion or more than 10% of the APBN. During the Covid-19 period, the value of palm oil exports rose (during 2020, the export value of palm products grew 13.6 percent from 2019). The number of workers absorbed will reach 4.43 million people in 2020 (temporary figures).

Indonesian Vice President Ma'ruf Amin in the inauguration of the opening of the 15th Indonesian Palm Oil Conference (IPOC) 2019 said that the government is committed to improving national palm oil governance. The vice president also emphasized (quoting President Jojo Widodo's statement in 2018) efforts to develop the palm oil sector by using technology, rejuvenating smallholder palm oil, expanding export markets, downstream industry, and implementing biodiesel. However, there is one root cause of governance problems that were not mentioned at all, namely the issue of the design of national oil palm industrialization.

One of the root problems of the palm oil sector is the absence of a national palm oil industrialization design that directs palm oil governance. So that there is an imbalance between palm oil producers (palm plantations) and the installed capacity of palm oil products (based) industries. Inequality is not only in terms of volume but also between regions. The palm oil industry develops at the whim of the main industries and is concentrated in only a few areas. Moreover, the practice of oligopoly is so commonplace that the industry does not lead to industrialization.

Is the current direction of palm oil industrialization in accordance with the national palm oil development plan? How does the government target the challenges that must be faced to realize the national industrialization of palm oil? To answer these questions, Auriga Nusantara organized an online discussion on Ngopini Sawit #8 with the theme “Palm Oil Industry: Realities and Challenges”.

Resource Persons and Presentation Themes

Time and Location

Day/Date: Wednesday, 30 June, 2021

Time: 13.30 - 15.30 WIB

Location: Youtube Auriga

Participants

This activity will invite participants to represent palm oil parties, ministries/state agencies, companies/associations, civil society, academics, the media and oil palm planters.

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