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Jakarta Post

Helping smallholders in palm oil

  • Samara Yarasevika

Bogor   /   Thu, June 21 2018   /  02:38 am

The increasing demand for palm oil for food and energy has prompted the Indonesian government to determine a strategy to increase palm oil production, among others, by issuing Agriculture Ministerial Decree No. 33/2006 on plantation development through plantation revitalization programs. Currently, Indonesia is the biggest producer of crude palm oil (CPO) in the world, surpassing Malaysia. However, Indonesia still lags behind Malaysia in CPO productivity. Palm oil production in Indonesia is less than 4 tons per hectare per year, while in Malaysia, production has reached more than 5 tons per ha per year. It indicates that the higher production in Indonesia occurs in light of oil palm plantation expansion. Among the three groups of palm oil producers, the area of smallholders’ plantations grew at the highest rate, namely 11.4 percent per annum, which is much higher than that of private c...