Indonesia palm oil industry focuses on productivity and sustainability

The Indonesian palm oil industry is focusing on productivity and sustainability to meet domestic and global demands. The Indonesian Palm Oil Association (Gapki) emphasizes that with limited land expansion, the sector must prioritize human resource quality, technological innovation, and integrated policy management from upstream to downstream.

Indonesia currently contributes approximately 58% of the global palm oil supply, providing 49 million metric tons out of a total 85 million metric tons. However, Gapki warns that without significant growth in production, Indonesia could face a supply deficit of 27 million metric tons to meet future needs.

On a local level, the KUD Sadar Sejahtera cooperative in South Sumatra is partnering with Sinar Mas Agribusiness and Food to implement the People's Palm Oil Rejuvenation Program (PSR). This initiative involves rejuvenating 1,797 hectares of land and engaging over 2,000 independent farmers. The program, supported by funding from the Palm Oil Fund Management Agency (BPDP), aims to replace old trees with more productive and sustainable varieties without requiring new land clearing.