Press Release
Indonesian Palm Oil Association (IPOA)

Luhut: Thanks to Indonesian Palm Oil Industry

JAKARTA – Maritime and Investment Coordinating Minister Luhut Binsar Panjaitan expressed his gratitude to the Indonesian palm oil industry for becoming the backbone and savior of the national economy while other economic sectors are weakening.

“We’re grateful to the palm oil industry for becoming the main pillar and savior of our national economy, especially during the outbreak of Covid-19 pandemic,” said Luhut Panjaitan in his keynote speech in the world’s largest palm oil conference, IPOC (Indonesian Palm Oil Conference) 2020 which was organized virtually on Thursday (3/12).

Luhut said that the palm oil industry has again proved itself as the best performing sector compared to other business sectors. Amid the pandemic, the exports of palm oil products managed to maintain positive growth despite declining demand in several countries of export destinations. As of September 2020, the export value of palm oil reached USD13.84 billion.

Luhut ensured that the government will keep ensuring the certainty of doing palm oil businesses. The business certainty is expected to be further improving after the implementation of the omnibus law on job creation. “The omnibus law stipulates the aspects of land governance, licensing of palm oil businesses,  and partnerships between companies and smallholders,” he said.

He noted that all stipulations of the omnibus law are aimed at creating business certainty, ease of doing business, and conducive climate of investment.

“We hope that with the issuance of the omnibus law and all implementing regulations, the investments in the palm oil industry, upstream and downstream, will be increasing,” said Luhut.

On the other side, Luhut also reminded the challenges facing the palm oil industry, especially the negative campaigns at home and abroad. Considering the importance of the palm oil industry for Indonesia, Luhut calls on all stakeholders to join forces to fight against the negative information on the palm oil industry. He also underlined the importance of implementing the sustainability principles in cultivating the oil palm plantations.

“I would like to express my appreciation to the Indonesian Palm Oil Association (GAPKI) that has been consistently promoting and campaigning for the Indonesian palm oil industry,” said Luhut.

At the same occasion, the Indonesian Chamber of Commerce and Industry’s (KADIN) Vice Chairman in Charge of Agribusiness, Food and Forestry, Franky O. Widjaja pointed out that the palm oil industry has not only supported the national economy, but it has also increased the public welfare as a labor intensive sector. He noted that at least 16 million Indonesian people are employed directly or indirectly in the palm oil industry.

Franky calls on the palm oil industry to keep supporting the global food security, as global demand for vegetable oils increasing along with the rising number of the world population. He asserted that as the most productive and most efficient vegetable oil compared to other vegetable oils, the palm oil is able to meet the global market need of vegetable oils.

The oil palm plantations can produce at least 5 tons of crude palm oil (CPO) per hectare per year, so that it only needs 40 million hectares of land to fulfill the vegetable oil market need. Meanwhile, the soybean with the production of only at the average 0.45 million ton per hectare per year, it needs 445 million hectares of land, and rapeseed with the production at average of 0.78 million ton per hectare per year will need 290 million hectares of land.

With such big potential, Franky is confident that the Indonesian palm oil industry is able to meet the vegetable oil need at local market and global market, especially if the industry can increase its productivity. (*)

Jakarta, 3 December 2020
Indonesian Palm Oil Association (IPOA)

For further information, please contact:

Tofan Mahdi
Head of Communication Division of IPOC 2020
Mail: [email protected]