Jakarta – The national economic growth of Indonesia is mainly driven by a number of strategic commodities, including palm oil, with the smallholders being in the vanguard of pushing up their developments. Unfortunately, negative campaigns and interventions of the foreign NGOs against the commodities have negatively affected the farmers.
The Association of Indonesian Oil Palm Smallholders (APKASINDO) Chairman Gulat Manurung stated that the negative campaigns and the foreign interventions have reduced the absorption of the farmers’ production of fresh fruit bunches (FFB). “The negative campaigns have tarnished the image of crude palm oil (CPO) at global market. Such condition can cause other countries to cancel their palm oil purchase. As a result, the palm oil mills reduce their absorption of the farmers’ FFB,” Gulat said in a press release on Wednesday, 23 November 2022.
According to Gulat, the negative campaigns are actually driven by international trade motive. Certain groups want to seize the market share of palm oil as Indonesia commands 52 percent market share of palm oil at the global market of vegetable oils.
“Any pressure against the palm oil industry will certainly affect the welfare of farmers as the majority of oil palm plantations in Indonesia are owned by independent smallholders,” said Gulat.
Based on data from the agriculture ministry, there are 2.74 million families of oil palm smallholders in Indonesia. The palm oil industry contributes 13.5 percent of the Indonesia’s total exports of non-oil-gas products. In 2021, Indonesia managed to export a total of 34.2 million tons of palm oil products.
“During the last three months we’ve seen a good absorption of FFB from the farmers, as exports have already returned to normal. It means, domestic stock with absorption for exports has reached normal conditions. As a result, FFB absorption from the farmers has also returned to normal,” he said. (*)
Source: wartaekonomi.co.id