Kompas, 18 July 2018
Improving the palm oil productivity of smallholder farmers is a big challenge for the national palm oil industry. The productivity of smallholder farmers only reached two to three tonnes per hectare per year, far below its potential productivity of six tonnes per hectare per year. This low productivity is in part due to the slow progress of replanting programme. Indonesian Agriculture Economy Association Head Bayu Krisnamurthi said during the International Oil Palm Conference (IOPC) in Medan on Tuesday (July 17) that this is a serious issue for Indonesia’s palm oil industry. By simply increasing the farmers’ productivity by a tonne per hectare could contribute Rp31 trillion revenue per year to the country, he said.