Indonesia: Rigid governance makes people’s palm oil rejuvenation targets missed

Published 2024년 11월 18일

Tridge summary

Indonesia, the world's leading palm oil producer, is facing significant economic losses due to inefficient palm oil management, according to a study by the Indonesian Ombudsman. The study reveals annual losses of up to IDR 279.1 trillion, spread across overlapping palm oil land with forest land, inefficient policies and permits, low quality seeds, and lost yield due to improper grading. The Indonesian Palm Oil Entrepreneurs Association (Gapki) has called for improvements in land and licensing policies, and has identified several challenges hindering the achievement of the government's palm oil rejuvenation targets.

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Original content

Reporter: Dadan M. Ramdan | Editor: Yudho Winarto KONTAN.CO.ID - JAKARTA. Indonesia is the world's leading producer of palm oil. However, our palm oil management is not yet optimal. Inevitably, due to overlapping palm oil land with forest land to licensing policies related to the cultivation and rejuvenation of people's palm oil (PSR) causes economic losses of up to IDR 279.1 trillion per year as per the results of a study by the Indonesian Ombudsman. The Ombudsman detailed that losses from the aspect of land use that overlapped a lot reached IDR 74.1 trillion. Then from the aspect of constrained integration of policies and permits in the form of Cultivation Registration Certificates (STDB) and PSR amounting to IDR 111.6 trillion. In addition, the aspect of trade related to the quality of seeds that do not comply with ISPO (Indonesian Sustainable Palm Oil) with a potential loss of IDR 81.9 trillion, as well as the aspect of lost yield/profit due to grading that does not comply ...

Source: Kontan