President Jokowi Urges to Raise Palm Oil Productivity

President Jokowi opens the 2018 Indonesian Palm Oil Conference (IPOC) and 2019 Price Outlook, at Sofitel Hotel, Nusa Dua, Bali, Monday (29/10). (Photo: OJI/PR)

President Joko “Jokowi” Widodo explained that the aim of the Indonesian Government’s policy to impose a moratorium on oil palm permits is to encourage replanting or rejuvenation of palm trees.

“The Government has decided to run the moratorium to boost palm oil productivity. If normally 1 hectare can produce 3 or 4 tons palm oil, we expect to increase it up to 6 to 9 tons,” said President Jokowi at the opening the 2018 Indonesian Palm Oil Conference (IPOC) and 2019 Price Outlook, at Sofitel Hotel, Nusa Dua, Bali, Monday (29/10).

Previously, President Jokowi expressed his pride at Indonesia’s achievement as the largest palm oil producer in the world with production volume reaches 42 million tons per year.

On the other hand, President Jokowi also explained that he heard complaints from palm oil farmers/ business people about the decline in palm oil prices. “I have sent a number of ministries to several member countries of the European Union and asked their help to boost our palm oil market in their regions,” the President said. However, it is not our decision to determine market prices as we follow the international market, he added

According to the President, 42 million tons is a very large amount, and the market is covering almost 70% -80% of the world market.

For this reason, it is important to impose a moratorium on new permits for palm oil plantations in order to raise land productivity.

In addition, since last year the President had requested the rejuvenation and replanting of palm oil plantations, particularly for plants older than 25 or even 35 years.

Regarding the rejuvenation, President Jokowi explained that the Government provides subsidies, adding that he has asked ministers and related stakeholders to simplify the procedure for the subsidies.

On that occasion, President Jokowi also asked Coordinating Minister for the Economy to immediately issue land certificates for palm oil plantations  as long as there is no dispute regarding the said land.

President Jokowi also reminded to use technology for sustainability of palm oil industry. He cited an example of palm oil seeds that are pest-resistant and can produce more fruits by using biotechnology method.

Also present on the occasion were Coordinating Minister for the Economy Darmin Nasution, Coordinating Minister for Maritime Affairs Luhut B. Panjaitan, Minister of State Secretary Pratikno, Cabinet Secretary Pramono Anung, Minister of Industry Airlangga Hartarto and General Chair of the Indonesian Palm Oil Association (GAPKI) Joko Supriyono. (DNS / OJI / ES)

Translated by: Estu Widyamurti

Edited by: Mia Medyana