{"id":31017,"date":"2026-01-27T14:03:49","date_gmt":"2026-01-27T07:03:49","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=31017"},"modified":"2026-02-03T14:08:55","modified_gmt":"2026-02-03T07:08:55","slug":"smallholders-call-for-founding-of-palm-authority-body","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2026\/01\/27\/smallholders-call-for-founding-of-palm-authority-body\/","title":{"rendered":"Smallholders Call For Founding of Palm Authority Body"},"content":{"rendered":"

JAKARTA \u2013 Oil palm smallholders grouped under the Association of Indonesian Oil Palm Smallholders (Apkasindo) have urged the government to immediately establish a Palm Oil Authority Body, aimed at developing palm oil as a strategic commodity within Indonesia\u2019s national development program. <\/p>\n

Apkasindo Chairman Gulat ME Manurung said in a press statement on Monday (26 January 2026) that palm oil governance in Indonesia is currently fragmented across numerous ministries and institutions, resulting in overlapping regulations that hinder the progress of the nationally strategic sector.<\/p>\n

\u201cCurrently, there are around 37 ministries and institutions managing the palm oil industry from upstream to downstream. It\u2019s like a ship with 37 captains, each with an anchor. Certainly, it won\u2019t sail,\u201d Gulat stated.<\/p>\n

According to him, the involvement of many institutions without a single central authority has led to unsynchronized and, in some cases, conflicting palm oil policies. Smallholder farmers are the most affected by this situation.<\/p>\n

\u201cRegulations become overlapping. This is what makes our palm oil governance ineffective and inefficient. Therefore, we urgently need the Palm Oil Authority Board,\u201d he said.<\/p>\n

Gulat explained that the idea of establishing an Indonesian Palm Oil Authority Board originated from a doctoral dissertation written by Dr. Mutiara Panjaitan from the Faculty of Law, University of Indonesia (UI). The dissertation comprehensively examined the complexity of national palm oil issues and proposed the establishment of a single authoritative body as the main solution.<\/p>\n

\u201cThe dissertation is entitled *\u2018Solving Indonesia\u2019s Palm Oil Problems with the Indonesian Palm Oil Authority Only.\u2019 Conducting such a study is not easy. It requires comprehensive understanding and extensive experience in the palm oil sector,\u201d he said.<\/p>\n

The establishment of a palm oil authority body, according to Gulat, is intended to manage the palm oil industry as a strategic commodity under the national development agenda, promote higher economic growth, and maximize its contribution to public welfare.<\/p>\n

Based on various academic studies, inter-ministerial consultations, and discussions with industry stakeholders, it has been concluded that there is an urgent need to optimize Indonesia\u2019s palm oil governance by prioritizing national interests, justice, and consolidation of national strength.<\/p>\n

This objective, he said, can be achieved through the formation of an institution capable of synergizing all stakeholders to improve upstream and downstream governance, increase productivity, optimize state revenue, enhance downstreaming, strengthen markets and research, conduct positive campaigns, and carry out trade diplomacy in strategic markets.<\/p>\n

The establishment of an Indonesian Palm Oil Authority or a similar body is also considered increasingly urgent as a centralized entity responsible for collecting and integrating national data on palm oil production, consumption, licensing, and sustainability.<\/p>\n

\u201cThis institution can respond quickly to global geopolitical dynamics while ensuring policy consistency to support the palm oil industry\u2019s transition from an export commodity into a strategic pillar of national energy and food security,\u201d Gulat stated.<\/p>\n

Time for Palm Upstreaming?<\/h3>\n

In addition to calling for the establishment of a palm oil authority, Apkasindo has also urged the acceleration of palm oil upstreaming, namely strengthening the upstream sector, which is considered to lag behind downstream development. Gulat emphasized that the formation of a palm oil authority is crucial for implementing this upstreaming agenda.<\/p>\n

\u201cStrengthening the upstream sector and governance is key to the success of the palm oil downstreaming initiative, as envisioned by President Prabowo in the National Medium-Term Development Plan (RPJMN) targeting 8% economic growth,\u201d he said.<\/p>\n

Gulat further noted that recent natural disasters in Sumatra have served as an important reflection point for evaluating governance across the palm oil plantation sector. Although available data and audiovisual evidence indicate that palm oil plantations were not the primary cause of the disasters, they nevertheless highlight the need for improved governance of Indonesia\u2019s palm oil industry.<\/p>\n

Key measures proposed for strengthening the upstream sector and governance include:<\/p>\n