Indonesia faces palm oil production decline and assumes WCOPS leadership

The Indonesian Palm Oil Association (GAPKI) predicts that Indonesia's crude palm oil (CPO) production could drop by approximately 5 million tons next year due to the El Nino phenomenon and a positive Indian Ocean Dipole. Without weather impacts, production was estimated at 59.5 million tons, but the projected decline could bring the total down to 53 million tons.

GAPKI Chairman Eddy Martono highlighted that the slow implementation of the People's Palm Oil Rejuvenation (PSR) program is a major obstacle to increasing national productivity. Despite funding being available through the Palm Oil Fund Management Agency (BPDPKS), licensing issues have hindered progress.

In a separate development regarding industry leadership, Indonesia has taken the helm of the World Coalition of Oil Palm Smallholders (WCOPS). During the International Oil Palm Smallholders Forum in Nusantara, Gulat ME Manurung accepted the presidency of WCOPS. The coalition, representing associations from seven countries including Indonesia, Malaysia, Thailand, Nigeria, Ghana, Honduras, and Côte d'Ivoire, aims to unite smallholders to advocate for fair trade, price equity, and improved relations with corporations.