The Palm Scribe

Grand Strategies for Indonesia Palm Oil Development

Palm oil industry is one of the biggest sources of income for Indonesia and it still has a lot of potentials to develop, however, the palm oil development need proper strategies to lead it in the right way.

Sunarso, President Director of PT Pegadaian in National Palm Conference expressed the palm oil development matters. “The development should be goal oriented as the potential could be increased,” He also emphasizes the grand strategies for Indonesia palm oil development are needed because currently there is no clear and direct concept for palm oil development cornerstone today.

palm oil development

Furthermore, he explains there are four grand strategies that could be implemented for Indonesia palm oil industry; First is the national spatial concept in detail for every stakeholder to have a basic measurement concept in every region and to prevent overlapping land permits issue.

Second is the participation of farmers. Palm oil farmer involvement is critical as a subject to evenly distributing the profit and speed up the palm oil industry. After all the farmers are the backbone of palm oil industry.

Third is the solid integration of upstream and downstream of palm oil industry. Sunarso also emphasizes one of the issues in palm oil industry is the lack of the focus for the production process. Currently, there is no credit fund balancing in the palm oil development. The upstream industry receives Rp 332 trillion for the development while the downstream industry only receives Rp 94 trillion whereas the profit could be significantly increased if the downstream industry expanded.

Fourth is sustainable palm oil development. Sunarso said every stakeholder should have a proper production standard that meets ISPO or RSPO terms so that the production process does not harm ecosystem in the environment.

Sunarso also believes those four strategies could increase the national income and accelerate Indonesia palm oil development.


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