Bappenas Minister calls for integrated palm oil upstream and downstream ecosystem

Rachmat Pambudy, the Minister of National Development Planning (PPN) and Head of Bappenas, emphasized that the development of palm oil industry downstreaming must be accompanied by strengthening the ecosystem from the upstream to the downstream sectors. Speaking at the Sawit Indonesia Expo & Conference (SIEXPO) 2026 in Pekanbaru, Riau, Pambudy stated that downstreaming cannot function effectively if the upstream sector is not well-managed.

He noted that plantation management, productivity increases, and the development of derivative products must operate within a single, mutually supportive ecosystem to ensure economic benefits are widely felt by the community. Pambudy highlighted that agriculture and plantations are vital to national development and that planning must result in tangible benefits rather than just programs or documents.

In Riau, Regional Secretary Syahrial Abdi reported that the provincial government is focusing on improving human resources, infrastructure, and industry governance. This includes price regulations for partner smallholders and certification improvements. Riau currently holds approximately 20 percent of Indonesia's palm oil plantations and receives about 20 percent of funds from the Palm Oil Fund Management Agency (BPDP), which supports programs such as palm oil scholarships.