Prabowo Promises To Raise Smallholders’ Welfare

JAKARTA – President-elect Prabowo Subianto, who has been formally declared as the winner of presidential election (Pilpres) 2024, has stated that he is really serious with his plan to develop green energy from palm oil and promised to improve the welfare of smallholders in Indonesia.

The Indonesia’s next president, who won the electoral votes of almost 60%, has several times expressed such commitment on green energy development, including improvement of oil palm smallholders, which control around 41% of Indonesia’s total oil palm plantations of 16.38 million hectares.

Panji Irawan, a member of the council of experts of Prabowo and Gibran, pointed out five strategies, which have been prepared to improve the welfare of oil palm smallholders.

First, support the oil palm growers in getting legality of their oil palm plantations, especially concerned with those considered encroaching forests and certificates for smallholders. The cost of obtaining the legality will be covered from the so-called palm oil fund.

“We’ll support and help the smallholders in getting their legality,” Panji said during a public discussion on palm oil recently.

Second, support the smallholders in implementing downstreaming program through development of palm oil mills and refineries, so that they will not only rely on selling their palm fresh fruit bunches (FFB).

Third, Prabowo-Gibran will establish an Indonesian palm oil board, which functions as a single and integrated institution to manage the palm oil industries from upstream to downstream. It will be like MPOB of Malaysia.

Fourth, establish a representative of smallholders in the management of the oil palm plantation fund management board (BPDPKS).

Fifth, ensure all regulations are supportive for the oil palm smallholders. “We’ll ensure that all government regulations support palm smallholders and always involve the smallholders in every process of devising plans on palm oil industries,” he said. (*)

“We’ve had institutions like the financial services authority (OJK) which deal specially in financial sector. This special palm oil board will help mediate the interests of palm oil industries and other related stakeholders with the goal of developing Indonesian palm oil industries as the backbone of Indonesian economy and continue advancing the industries toward better condition,” said Panji. (*)

Source: sawitku.id