Indonesia: Optimizing the plantation sector, here's Jokowi's reason for changing BPDPKS

Published Jul 26, 2024

Tridge summary

The Indonesian government intends to transform the Palm Oil Plantation Fund Management Agency (BPDPKS) into the Plantation Fund Management Agency (BPDP) to broaden its scope to include other key plantations such as cocoa, coconut, and rubber. Coordinating Minister for Economic Affairs, Airlangga Hartanto, stated that this initiative aims to enhance the productivity of these sectors, which currently lag behind oil palm, thereby boosting their economic contribution. However, experts like Nailul Huda from Celios recommend that BPDPKS should first assess its performance in managing palm oil before expanding its responsibilities.

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Original content

The government is quite serious in changing the role and function of the Palm Oil Plantation Fund Management Agency (BPDPKS) to become only the Plantation Fund Management Agency (BPDP). ADVERTISEMENT This was explained by the Coordinating Minister for Economic Affairs, Airlangga Hartanto, who explained that the name change was because the government wanted to expand the role of BPDPKS so that it not only manages oil palm, but also other major plantations. For example, cocoa, coconut and rubber. Also read: President Jokowi: If the chairs are not ready, do you want to have a cabinet meeting while sitting down? "That's why yesterday we converted BPDPKS into BPDP. Plantation financing, including cocoa, coconut and rubber," said Airlangga when met at his office, Jakarta, Thursday (25/7/2024). This change, he said, was carried out because the productivity of cocoa, coconut and rubber plantations was increasingly lagging behind compared to oil palm. In fact, he claims, plantation sector ...

Source: Wartaekonomi