Research on Palm Oil Should Notice Factor of Externalities

Indonesian Coordinating Economic Minister Darmin Nasution ordered palm oil stakeholders to notice factor of externalities in taking action, including in conducting research, as palm oil sector is unique and affected by external factors. “It is deemed necessary for the Indonesia Oil Palm Plantation Fund Management Agency (BPDPKS) to notice factor of externalities in supporting research on palm oil. BPDPKS should be more careful in selecting research to be funded,” Darmin said in his address at the opening of Indonesian Palm Oil Research Week 2019 in Jakarta, Thursday (1/8/2019). In a condition where externalities are present, Darmin said, BPDPKS should be more more careful in selecting which parts should be studied and the studies have must benefit people greatly. Darmin would rather have only a few fascinating research that bring many benefits to the people than many research but useless. “Don’t ever research end up on bookshelves. They have to enrich our knowledge,” he added. In trying to improve research initiatives and development in palm oil industry, BPDPKS provides grant for research on palm oil. The program is aimed to provides opportunities for researchers to build synergistic and collaborative relationship between research institutions with palm oil industry. “The program is expected to build time to market research culture in the long run in Indonesia,” President Director of BPDPKS Dono Boestami said. BPDPKS has collaborated with with more than 25 public and private universities, 15 non-university research institutes, 501 senior researchers, and 256 students. The funding program has resulted 173 research contracts, 158 national and international scientific publications, 40 patents, and 5 books. Chairman of the Indonesian Palm Oil Association (Gapki) Joko Supriyono agreed with Darmin. “The Coordinating Economic Minister was right, there are factor of externalities in palm oil sector such as issues of deforestation, peat lands, etc. We have to notice to this matter,” Joko said. As a businessman, Joko expected research results end up in policies. Palm oil industry must take advantages to the research. **