{"id":28753,"date":"2024-10-16T08:31:30","date_gmt":"2024-10-16T08:31:30","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=28753"},"modified":"2024-10-23T08:40:11","modified_gmt":"2024-10-23T08:40:11","slug":"opinion-palm-oil-deserves-to-be-ris-national-strategic-object","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2024\/10\/16\/opinion-palm-oil-deserves-to-be-ris-national-strategic-object\/","title":{"rendered":"OPINION: Palm Oil Deserves To Be RI\u2019s National Strategic Object"},"content":{"rendered":"<p>The palm oil industry has contributed very significantly to Indonesia, especially since the last decade when the downstream palm oil industries developed into three groups of products, namely foods, renewable energy (bioenergy) and care and cleaning products.<!--more--><\/p>\n<p><a href=\"https:\/\/gapki.id\/en\/news\/2023\/12\/08\/revoke-the-ban-on-palm-oil-cultivation\/revoke_palmoil_bloomberg-com\/\" rel=\"attachment wp-att-27042\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-27042\" src=\"https:\/\/gapki.id\/en\/dir-site\/uploads\/2023\/12\/revoke_palmoil_bloomberg.com_.jpg\" alt=\"\" width=\"944\" height=\"583\" srcset=\"https:\/\/gapki.id\/en\/dir-site\/uploads\/2023\/12\/revoke_palmoil_bloomberg.com_.jpg 704w, https:\/\/gapki.id\/en\/dir-site\/uploads\/2023\/12\/revoke_palmoil_bloomberg.com_-300x185.jpg 300w\" sizes=\"auto, (max-width: 944px) 100vw, 944px\" \/><\/a><\/p>\n<p>Initiated by the large palm oil entrepreneurs, the industrialization or down-streaming of palm oil has been progressing well since 2012. Until now the downstream industries have produced hundreds of derivative products as foods, energy and care and cosmetic products.<\/p>\n<p>Since 2016, Indonesia has become the world\u2019s largest producer and exporter of palm oil, surpassing Malaysia which was previously the biggest producer. In 2023, Indonesia\u2019s total production of palm oil reached 55 million tons, commanding an impressive share of 54% at the global market of palm oil.<\/p>\n<p>Currently, the palm oil has become Indonesia\u2019s second largest export product of non-oil and gas after coal, with a total export value of US$30.3 billion last year, or 12% of the country\u2019s total exports. Besides, Indonesia is also the world\u2019s largest consumer of palm oil, which accounts for 27% of total global consumption.<\/p>\n<p>But behind the increase of palm oil production and consumption, there is a fear of competition between the palm oil use for foods and palm oil use for bioenergy. The consumption of palm oil for biodiesel in Indonesia last year reached 23.2 million tons or 46% of the total national consumption, while 44% for foods and 10% for oleo-chemicals.<\/p>\n<p>This commodity has also contributed significantly to the efforts of alleviating poverty in villages as 40% of Indonesia\u2019s total oil palm plantation areas of around 16.5 million hectares are owned by 6.7 million smallholders and the palm oil industries directly and indirectly employ around 16 million people.<\/p>\n<p>With such concrete and extraordinary contribution, the palm oil industry deserves to be treated as a strategic top industry that should be well protected and well managed to sustain its economic and social benefits for Indonesian people.<\/p>\n<p>But unfortunately, the Indonesian government, even under the administration of President Joko Widodo (Jokowi), has not yet determined the palm oil industry as the national strategic industry. Contrary to such expectation, the palm oil industry has been often disregarded and considered tainting the green image and commitment of the country, and often at critical times are sacrificed to gain certain momentary interests.<\/p>\n<p>The government has failed in solving problems of overlapping licenses and in mediating the conflict resulted from deforestation accusation against palm industries, which are actually \u00a0resulted from mismanagement of spatial planning and conflict.<\/p>\n<p>Considering the palm oil industry\u2019s strategic value, its many existing problems and potential problems, the palm oil industry players and all stakeholders hope the new government under President Prabowo Subianto will make a breakthrough to improve the governance, institution and management of palm oil industries.<\/p>\n<p>The highest priority for the new government should be to determine the palm oil industries as the national strategic top industry, which should be well protected, nurtured and controlled.<\/p>\n<p>Legally speaking, the palm oil industries, which provide sustenance and livelihood for millions of Indonesian families, contribution of foreign exchange, and source of state income, meet the criteria as national vital object based on the presidential decree (Keppres) No. 63\/2004 on security of national vital object, which is defined as locations, buildings\/installations and\/or businesses that concern the lives of many people, state interests and\/or\u00a0 strategic sources of state income.\u201d<\/p>\n<p>To realize the mission of President Prabowo to achieve sovereignty in foods and energy, the palm oil industries as the country\u2019s strategic top sector can be categorized into three strategic functions.<\/p>\n<p>First, the palm oil industry as strategic industry of food barn to achieve food security by determining the palm oil industries from upstream to downstream for the purpose of fulfilling the need of food products, and integrate the industry into strategic vital objects to realize the national food resilience.<\/p>\n<p>The palm oil industries for food resilience are prioritized for the oil palm plantations already in operation and integrated with the food industries, from cooking oil to margarine and others.<\/p>\n<p>Second, determining palm oil as the strategic source of bioenergy (energy sufficiency) with the support of oil palm plantations and bioenergy processing industries&#8211;biodiesel, bio-avtur and others. Considering that palm oil consumption for energy has been continually rising, there should be a development of new oil palm plantations in appropriate locations for bioenergy, such as Papua, Kalimantan and Sulawesi, which still have millions of hectares of degraded land areas, but appropriate for development of sustainable palm plantations.<\/p>\n<p>Third, integrating the oil palm plantations with industries of added-value products, which can be continually developed in line with the market needs and technological developments.<\/p>\n<p>Setting the palm oil industry as strategic vital object should be based on long-term development framework and roadmap, which requires better governance, improvement of research and development to produce superior seeds, integrated management from upstream to downstream, in line with the sustainability standards of\u00a0 environment, social, and governance.<\/p>\n<p>As a strategic industry, it is now high time that the palm oil industries are managed in an integrated manner under one special institution, which has full authority in determining policy, coordination, data security and integrated map,\u00a0 licensing and controlling the palm oil industries.<\/p>\n<p>An important task of the special institution should be to resolve the land disputes caused by overlapping licenses, develop palm plantations and downstream palm oil industry, conduct researches and determine policy of allocating palm oil-based cooking oil for various purposes, especially for production of bioenergy and foods for domestic consumption and exports. <em>(Edi Suhardi, Sustainability analyst, Head of the Indonesian Palm Oil Association\u2019s (GAPKI) Positive Campaign Division)\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The palm oil industry has contributed very significantly to Indonesia, especially since the last decade when the downstream palm oil industries developed into three groups of products, namely foods, renewable energy (bioenergy) and care and cleaning products.<\/p>\n","protected":false},"author":1,"featured_media":27042,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","footnotes":""},"categories":[3710,3708,3709],"tags":[],"class_list":["post-28753","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-info-activity","category-publication","category-recent-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - 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