DistantNews
Support us
🇮🇩 Indonesia /Economy & Trade

Palm Oil Farmers Control 41 Percent of National Land; BPDP: Not Just a Complement

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement Context piece
  • Smallholder farmers manage 41% of Indonesia's total oil palm plantations, managing over 16 million tons of palm oil annually.
  • This data highlights the central role of small farmers, challenging the perception that the industry is dominated by large corporations.
  • The palm oil industry is a major employer, supporting millions of jobs and contributing to economic growth and welfare in Indonesia.

Smallholder farmers in Indonesia manage a significant 41% of the nation's total oil palm plantations, collectively producing over 16 million tons of palm oil each year. This data underscores the vital role of individual farmers in the industry, countering the common perception that palm oil production is solely dominated by large corporations.

People often view palm oil only from the perspective of large companies, but the data shows that 41 percent of the national palm oil industry is managed by the community.

— Zaid Burhan Ibrahim, Director of Finance, General Affairs, Compliance, and Risk Management, BPDPHighlighting the significant role of smallholder farmers in Indonesia's palm oil industry.

Zaid Burhan Ibrahim, Director of Finance, General Affairs, Compliance, and Risk Management at the Oil Palm Plantation Fund Management Agency (BPDP), emphasized this point during a media discussion in Pangkalan Bun, Central Kalimantan. He stated that small farmers are not mere accessories but key actors in the national palm oil supply chain. These farmers are spread across major producing regions like Aceh, North Sumatra, Riau, South Sumatra, Kalimantan, and Sulawesi.

The economic impact of the palm oil industry extends far beyond the plantations themselves. It provides employment for approximately 16.5 million people across various sectors, including logistics, transportation, trade, processing, and small and medium-sized enterprises (UMKM). Investment in the sector has also spurred infrastructure development and fostered new economic centers, strengthening regional economies.

Small farmers are not just accessories in the palm oil industry; they are key actors in the national palm oil supply chain.

— Zaid Burhan Ibrahim, Director of Finance, General Affairs, Compliance, and Risk Management, BPDPEmphasizing the central role of small farmers in the palm oil sector.

"When we talk about palm oil, we are actually talking about the welfare of millions of Indonesians," Zaid asserted. He stressed that the long-term sustainability of the industry is intrinsically linked to the participation and productivity of these smallholder farmers, highlighting their crucial contribution to both the national economy and the livelihoods of many citizens.

When we talk about palm oil, we are actually talking about the welfare of millions of Indonesians.

— Zaid Burhan Ibrahim, Director of Finance, General Affairs, Compliance, and Risk Management, BPDPConnecting the palm oil industry to the well-being of the Indonesian population.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog