YOGYAKARTA \u2013- The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono has stated that the palm oil industry has a historical and strategic role in developing remote areas in Indonesia, and later functioning as one of the main pillars of national economy.<\/p>\n
Eddy Martono made the statement when presenting a keynote speech during a national seminar on considering the palm oil industry from the aspects of economy, Social, and environment <\/em>at the Faculty of Agriculture of the University of UPN \u201cVeteran\u201d Yogyakarta on Thursday (22\/01\/2026).<\/p>\n Eddy claimed to be a living witness to how oil palm plantations emerged in previously isolated areas with minimal infrastructure. He recounted his experiences when he first worked on oil palm plantations in Riau, Kalimantan, and Sulawesi early in his career.<\/p>\n “I am a living witness to the history of opening up many of remote areas,” he told hundreds of students in attendance at the seminar.<\/p>\n He said that from the start, after graduating from university, he had no intention of pursuing a career as a lecturer or civil servant. Eddy chose to jump straight into the field, seeking challenges.<\/p>\n “So, at that time, I wanted to seek extraordinary challenges. But once I was placed on the plantation, I wondered if I had made the wrong choice. It was extraordinary,” he said.<\/p>\n Eddy said his first assignment was in Riau, where infrastructure and technology were still very limited. It was so limited that he didn’t even know about the fall of President Suharto’s government in 1998.<\/p>\n “There was no TV there, nothing. At that time I left after morning prayers on my motorcycle to join the morning roll call at 6:30. So, I didn’t know about Suharto’s overthrow in 1998, on May 23rd,” he said.<\/p>\n After Riau, Eddy was then assigned to the West Sulawesi region, which was then still part of South Sulawesi. According to him, the conditions in the area were far from satisfactory.<\/p>\n “At that time, it was still South Sulawesi. That was even more shocking, I was even more shocked. I said, ‘Even a genie wouldn’t send its child here. Why is that? There’s no infrastructure. Let alone motorcycles, as there aren’t even bicycles,'” he said.<\/p>\n Eddy recounted that during his assignment to open the region, he lived in a wooden house in very simple conditions.<\/p>\n “I helped open the region and developed oil plantations. At that time, I looked for a place to stay. I rented a wooden house with many holes on its walls. I had to plaster it with newspaper and cardboard. I was with Astra at the time,” he said.<\/p>\n However, Eddy admitted he was proud to see the changes that have occurred since then. The once remote Pasangkayu region has been now developing rapidly and has become part of West Sulawesi Province.<\/p>\n “At that time, I helped develop the area with oil palm plantations. Now, the area becomes West Sulawesi Province. Previously, it was just one sub-district, Pasangkayu. But now it had developed into three regencies as part of the new province together with other regencies.<\/p>\n He said he returned to the area recently and saw a very significant change. “I just returned from there in November last year. I’m very proud because now we have hot-mix asphalt roads. In fact, those roads are among the ones we opened in the plantation,” he said.<\/p>\n According to Eddy, this situation demonstrates the real role of oil palm plantations in driving regional development. “It means that oil palm is opening up areas like that, and now it’s successful. Economic growth is also quite good,” he said.<\/p>\n Afterward, Eddy recounted his experience when he was assigned to Central Kalimantan to open up a neglected transmigration area. Many people in the area didn’t have identity cards (KTP).<\/p>\n He said this situation forced him to take the initiative to ensure people could obtain identity cards.<\/p>\n “I called a photographer from the city to take their photos so they could get KTPs, because I was going to develop community-owned plasma plantations there. Thank God, now that area has become a district,” he said.<\/p>\n Eddy emphasized that all of these experiences are concrete evidence of the palm oil industry’s role in opening up isolated areas.<\/p>\n “So, I’m a living witness to how oil palm plantations have opened up remote areas. They were once very difficult, but now those areas are thriving,” he said.<\/p>\n Eddy stated that the palm oil industry remains a major pillar of the national economy. Palm oil contributes the largest foreign exchange outside of oil and gas and coal and absorbs a large workforce.<\/p>\n “The directly employed workers are almost 5.5 million people. There are around 4 million oil palm smallholders. If you multiply that, more than 16 million Indonesians make a living from the palm oil industry,” he said.<\/p>\n He also touched on the role of palm oil during the Covid-19 pandemic. According to Eddy, amid the global crisis, the palm oil industry has remained resilient and even contributed significantly to foreign exchange.<\/p>\n “During Covid, palm oil foreign exchange reached US$39 billion. And there were no layoffs; instead, the palm industry made new recruitments,” he said.<\/p>\n However, Eddy warned that the palm oil industry has faced serious challenges in the form of production stagnation over the past five years, primarily due to issues with replanting of smallholders\u2019 oil palm plantations.<\/p>\n “Our production has been stagnant for five years. Meanwhile, 41 percent of oil \u00a0palm plantations are owned by smallholders. Many of them are facing problems in joining the replanting problem, which are mainly concerned with legality, and financing,” he said.<\/p>\n He believes that mandatory biodiesel policies like B35 and B40 have helped increase domestic absorption, but a balance must be maintained to avoid disrupting exports.<\/p>\n “If absorption continues to be forced to increase while production stagnates, exports will ultimately be sacrificed,” said Eddy.<\/p>\n Eddy emphasized that the sustainability of the palm oil industry is crucial for Indonesia’s future, including in realizing Indonesia Emas (Golden Indonesia) 2045.<\/p>\n “To this day, I haven’t seen any other commodity that can replace palm oil. If palm oil disappears, it will be a serious problem for Indonesia,” he concluded. (*)<\/p>\nPalm oil role and challenges<\/strong><\/h1>\n
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