AS the largest palm oil producing country in the world with total production of more than 56 million tonnes and exports reaching 26.33 million tonnes, palm oil has been able to transform into a strategic commodity that supports the national economy. In 2023, the export value of palm oil and its derivatives might reach USD28.45 billion or 11.6% of total non-oil and gas exports, and absorb up to 16.2 million direct and indirect workers, including smallholders.
Exports of Indonesian palm oil products have also reached more than 125 countries to meet the needs of food, energy and various other downstream industries. Considering the high potential of palm oil, the Government continues to strive to create added value and develop the downstream palm oil industry so that it is not only concentrated on raw materials, but is also able to produce final products.
“The government continues to push for Mandatory Biodiesel, which has now reached B35 and has been tested for B40, and the realization of domestic biodiesel absorption in 2023 will reach 12.2 million kilo liters and of course this will greatly influence the absorption of CPO use domestically,” said the Coordinating Minister for Domestic Affairs. Economy Airlangga Hartarto at the National Coordination Meeting for the National Action Plan for Sustainable Palm Oil Plantations, Thursday (28/3).
Furthermore, as a road map for improving sustainable palm oil governance as a whole, the Government has also established Presidential Instruction (Inpres) Number 6 of 2019 concerning the National Action Plan for Sustainable Palm Oil Plantations (RAN KSB) for 2019 – 2024. This Presidential Instruction gives a mandate to 14 Ministries/Institutions, 26 Provincial Governments of palm oil producing centers, and 217 Regency Governments of palm oil producing centers to implement the RAN KSB program.
Furthermore, the Presidential Instruction consists of 5 components, 28 programs, 92 activities and 118 outputs. The five components of the RAN KSB as stated in Presidential Instruction No. 6 of 2019 are Strengthening Data, Strengthening Coordination and Infrastructure, Increasing the Capacity and Capability of Planters, Environmental Management and Monitoring, Plantation Governance and Dispute Handling, and Support for the Acceleration of Implementation of Indonesia Sustainable Palm Oil (ISPO) Certification and Increasing Market Access for Palm Oil Products.
The programs and activities contained in the RAN KSB Presidential Instruction are designed to create enabling conditions for growers and business actors in fulfilling ISPO certification obligations. The realization of ISPO certification following the issuance of the RAN KSB Presidential Instruction has cumulatively reached 883 companies and 52 cooperatives/groups of growers.
Also read: Business Matching Reaches IDR 1.02 Trillion, Evidence of Promising Business Plantations
Apart from ISPO certification, another policy which is also a main part of the RAN KSB Presidential Instruction is the People’s Palm Oil Rejuvenation Program (PSR). The government has accelerated the PSR program by simplifying the application process. The realization of the implementation of the PSR Program has only reached an average of 50,000 Ha/year or 28% of the target of 180,000 Ha/year. In accumulation from 2017 to March 24 2024, the Government has also distributed PSR funds amounting to IDR 9.25 trillion with a total land area of 331,007 Ha.
Apart from that, Coordinating Minister Airlangga also encouraged support and cooperation from Regional Governments regarding the implementation of the RAN KSB by preparing the necessary steps to accelerate the preparation and implementation of Regional Action Plans for Sustainable Palm Oil (RAD KSB) in their respective regions. To date, there are 9 provinces that have Sustainable Palm Oil Regional Action Plans (RAD KSB), namely North Sumatra, Riau, Jambi, South Sumatra, Central Kalimantan, West Kalimantan, East Kalimantan, South Kalimantan and West Sulawesi.
On this occasion, Coordinating Minister Airlangga also conveyed a number of results from the Limited Coordination Meeting regarding People’s Palm Oil Plantations which was held before the National Coordination Meeting took place, starting from plans to change the allocation of PSR funds from IDR 30 million/Ha to IDR 60 million/Ha, reducing the initial requirements for applying for the PSR Program from 6 requirements become 3 requirements, simplifying the verification process, and shortening the PSR Program application process.
“The Limited Meeting also discussed the settlement of palm oil in forest areas, so various scenarios have been prepared as mandated by the Job Creation Law,” concluded Coordinating Minister Airlangga.
Also present on this occasion were the Head of the Geospatial Information Agency, the Director General of Regional Development of the Ministry of Home Affairs, the Director General of Land Dispute and Conflict Handling of the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), the Director General of Plantations, Ministry of Agriculture, the Secretary General of the Ministry of Environment and Forestry, Deputy for Coordination of Food and Agribusiness, Coordinating Ministry for the Economy, Deputy for Coordination of BUMN Business Development, Research and Innovation, Coordinating Ministry for the Economy, Spokesperson for the Coordinating Ministry for the Economy, Main Director of the Palm Oil Plantation Fund Management Agency (BPDPKS), Representative of the Ministry/ Institutions, and Regional Government Representatives. (Z-6)
#Holding #National #Coordination #Meeting #Government #Continues #Sustainable #Palm #Oil #Plantation #Action #Plan
