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The Indonesian Ministry of National Development Planning (Bappenas) is spearheading a major transformation of the national palm oil industry to boost productivity, enhance sustainability, and increase economic value-add. Speaking at the 22nd Indonesian Palm Oil Conference (IPOC) in Bali, Minister of National Development Planning Rachmat Pambudy emphasized that the shift is essential for Indonesia to move beyond its reliance on crude palm oil (CPO) exports and transition toward high-value downstream products.
According to Pambudy, the palm oil industry remains a pillar of national independence, supporting food security, energy transition, and the livelihoods of millions. To fortify this sector, the government has outlined five key strategies: increasing independent smallholder productivity, eliminating supply chain barriers through real-time traceability, strengthening Indonesian Sustainable Palm Oil (ISPO) standards globally, accelerating downstream industrialization, and ensuring the welfare and safety of plantation workers.
Detailed plans include the development of derivatives such as sustainable aviation fuel (SAF) and specialty oleochemicals to maximize the commodity's value. In the upstream sector, the government is promoting the replanting of aging palm trees using DNA-certified seeds to improve yields without expanding plantation land. Digitalization of the replanting process is also being fast-tracked to reduce bureaucracy and prevent the use of counterfeit seeds.
Minister Pambudy underscored that while the government provides policy clarity and legal certainty, the private sector must adopt responsible business practices and invest in innovation. He further noted that protecting independent smallholders is not merely a social responsibility but a strategic component in building industry resilience through agrarian reform and improved land access.
Source: VOI.ID