Palm Oil Predict Bright Future for Indonesian Exports

The partnership program can be a bridge that strengthens the corporatization of farmers as an effort to increase farmers’ welfare and income. This partnership can be found in the Indonesian palm oil industry, which has high value and is able to prosper both farmers and entrepreneurs. Currently, Indonesia contributes 52 percent of the world’s palm oil market share and contributes 40 percent to world palm oil production.

“Indonesia’s economic performance is projected to remain positive, marked by year-on-year export growth of 20.28 percent in September 2022. The increase in exports is supported by commodities such as palm oil and coal,” said Coordinating Minister for the Economy Airlangga Hartarto in his remarks at the 7th Indonesia Palm Oil Stakeholders (IPOS) Forum (23/10/2022).

Reported by liputan6.com, Airlangga explained that the government strongly supports the partnership program between farmers and companies. He assessed that the program could advance the equitable use of palm oil products and regional economic development. This is also directly related to the theme of the 7th IPOS Forum which was ‘Corporatization for Independent Farmers Through Healthy Partnerships’.

“The partnership will attract other investment sectors such as industry and consumption. Through the discussion of the partnership scheme in this year’s IPOS Forum, it is hoped that this can be a momentum for improving the national economy,” Airlangga added.

The event was also attended by the President Director of BPDP-KS Eddy Abdurrachman. He said that smallholder-company partnerships became a necessity for the wider interest. One of them is to build an efficient and effective palm oil business on a national scale, so that it can push the competitiveness for the global market.

“That’s why BPDPKS fully supports the 7th Indonesian Palm Oil Stakeholders Forum (IPOS Forum) conducted by the Indonesian Palm Oil Association (GAPKI) in North Sumatra province,” said Eddy.

Eddy said that the IPOS Forum also supports the acceleration of PSR and hopes that the corporatization of farmers will be more institutionalized in all parts. If it all can synergize, palm oil farmers can have an equal bargaining position with partners and grow together.

The IPOS Forum 2022 was attended by 1,000 participants who were divided into six discussion sessions over the two days of its implementation, namely Farmer Corporatization, People’s Palm Oil Rejuvenation (PSR) as the Implementation of Farmer Corporatization, Business Model of Farmer Corporatization, Spatial Planning, Barriers or Drivers of Development, Examining Reference Models for Calculation of Fruit Prices, and Downstream Program of Oil Palm Smallholder Corporations.