BPDPKS Points Out the Importance of Improving Living Standard of Smallholder Farmers

PRESIDENT Director of the Indonesia Oil Palm Plantation Fund Management Agency (BPDPKS) Dono Boestami reiterated his view about the importance of improving living standard of oil palm smallholder farmers amid challenges the palm oil industry face. He said, numerous challenges are dominating Indonesia’s palm oil industry.

From delegated act by the European Union that restrict the types of biofuels from palm oil, negative campaigns, to tariff and non-tariff barriers. Those challenges must remain at the top agenda to make sure that smallholder farmers don’t suffer the consequences. “BPDPKS stands ready to support all the Government program, simply to ensure oil palm smallholder farmers achieve and sustain a decent standard of living,” Dono said as he gave an address to palm oil stakeholders at the Stakeholder Gathering 2019 in Jakarta, Tuesday (22/5/2019). Attendees at the “Sharing the Blessing of Ramadan to Implement Indonesia Sustainable Palm Oil”-themed event included busineespeople, researchers, academia from some universities, bankers, representatives of ministries as well as all stakeholders in palm oil industry.

The event also had the presence of directors and staff of BPDPKS, the Deputy of Coordinating Ministry for Economic Affairs of Food and Agriculture Musdhalifah Machmud, the Chairman of the Supervisory Board of BPDPKS Rusman Heriawan, Director General of Estate Crops at the Ministry of Agriculture Kasdi Subagyono, Head of Trade Policy Analysis and Development Agency at the Ministry of Commerce Kasan, Chairman of Indonesian Palm Oil Association (Gapki) Joko Supriyono, and Secretary General of Indonesian Palm Oil Board (DMSI) Bambang Aria Wisena. In his remark, Dono also urged the importance of making attempt to keep CPO price stable which is one of BPDPKS’ goals. The Government is speeding up the mandatory B30 (fuel with 30 percent biodiesel content) which also can be a solution to keep the CPO price stable. Also, increasing the number of high-value-added products from the downstream industry could hike domestic demand such as implementing palm oil-based green fuels. Currently, Indonesia has successfully produced green gasoline, green diesel, and green avtur using co-processing method with homemade catalyst.

Production is already underway at Pertamina’s refineries in Dumai and Plaju and also will be produced at Balongan and Cilacap refineries. For further export expansion, BPDPKS fully supports Government program to search for more non-traditional markets, such as Pakistan and Bangladesh. Also, China offers an excellent opportunity for growth in the Asian market as the country is implementing mandatory B5 program.

“China will need 9 million KL for B5 and the country afford only 1 million KL so that there will be opportunity about 8 million KL. Indonesia can only provide 3 to 4 million KL.” Another effort to improve farmer’s living standard is by implementing Smallholders` Oil Plant Plantation Replanting program (locally known as PSR). The program is not only to replant old trees but also to collect data of plantation and farmers. “We will collaborate with Statistics Indonesia (BPS) and Ministry of Agriculture.

We can collect data of farmers which will come in handy for government to decide what support the farmers can get.” At the same occasion Rusman Heriawan gave an address to stakeholders, said that he praised BPDPKS for organizing Stakeholder Gathering 2019 as the blessed month of Ramadan is an ideal time to meet and get to know each other during an iftar dinner. He expected the Indonesia’s palm oil industry to grow and able to get through a tough time because of low CPO price. Meanwhile, Musdhalifah Machmud urged stakeholder to work harder not only because of low CPO price but also wrongful allegations against palm oil.

“One thing I’d like to say, let’s just work harder because we are facing wrongful allegations that palm oil products are not sustainable, not eco-friendly. Let’s just prove them wrong. Palm oil is good, efficient, and eco-friendly commodity.” Apart from having iftar dinner, Stakeholders Gathering 2019 also included a recitation of Holy Quran and donation for orphaned children. ***