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Government Makes Palm Oil Plantations a Hope for Economic Equality Without Deforestation

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By: Agas  Darmawan)*

The Indonesian government, under the leadership of President Prabowo Subianto and Vice President Gibran Rakabuming Raka, has revealed plans to expand oil palm plantations as part of a strategy to support national economic equality. This move is in line with the government’s efforts to strengthen food security, energy, and maintain environmental sustainability. 

However, there are some concerns raised regarding the possible negative impacts on deforestation, with many doubting whether such a move can be carried out without damaging the natural ecosystem.

However, the government is trying to explain that the expansion of oil palm plantations does not have to be done by cutting down forests that are still intact. Forestry Minister Raja Juli Antoni emphasized that the use of forests for food, energy, and water reserves is not a form of deforestation, but rather a step to ensure food security while maintaining forest sustainability.

According to the Minister of Forestry, around 20 million hectares of forests in Indonesia have been degraded and can be used to support the program without damaging the environment. By using degraded land, the government hopes to increase land productivity while mitigating forest fires that often occur in the area.

The program, according to the Minister of Forestry, is part of the government’s major efforts to protect forests while increasing food and energy availability. According to the Minister of Forestry, one real example is the utilization of 1.1 million hectares of land for planting upland rice, which is estimated to produce 3.5 million tons of rice per year. This shows that there is great potential in utilizing degraded forests as agricultural areas that support Indonesia’s food security.

Furthermore, President Prabowo Subianto’s statement on the expansion of oil palm plantations also received support from various groups, especially in the context of energy security. Forestry observer Budi Mulyanto explained that the expansion of oil palm plantations can be done by utilizing land that is no longer forested, so it will not increase deforestation. 

According to Budi, this expansion is very important considering the increasing need for palm-based biodiesel production. In order to achieve this, Indonesia needs to increase its production capacity through an extensification strategy, namely by increasing the area of ​​land used for palm oil plantations. 

Budi also revealed that although Indonesia has been carrying out intensification programs such as the People’s Oil Palm Replanting (PSR), these efforts are not enough to meet domestic needs, especially to support the more ambitious B40 (biodiesel 40% palm oil blend) and B50 programs. 

Budi added that only by extending oil palm plantations that utilize degraded land can Indonesia meet its balanced food, energy and palm oil export needs without damaging the environment.

According to data from the Ministry of Environment and Forestry (KLHK), Indonesia has around 31.8 million hectares of forest land that is no longer forested, and this is a great opportunity for the development of oil palm plantations. 

Along with that, Budi emphasized the importance of ensuring that the expansion of oil palm plantations is not carried out in forest areas that are still protected, but rather on land that has been degraded. With this approach, the expansion of oil palm plantations can be carried out without causing further damage to the forest.

Chairman of the Indonesian Palm Oil Council (DMSI), Sahat Sinaga, also gave his support to President Prabowo’s policy on the expansion of oil palm plantations. According to him, with the increasing need for CPO ( Crude Palm Oil ) in the domestic market, this step is very important to maintain biofuel-based energy security.

Sahat explained that the expansion of palm oil plantations also supports Indonesia as the world’s largest palm oil producer. In this context, Indonesia needs to pay attention to the supremacy of its position as the largest palm oil producer so that CPO trade remains smooth in the global market.

However, Sahat also reminded of several challenges that the government must face in implementing this policy. First, related to the intensification and traceability of oil palm plantations, especially for plantations owned by small farmers. Many oil palm plantations are bound by forest area status and do not yet have certificates.

Therefore, palm oil farmers need to be encouraged to obtain certification so that their plantations are guaranteed in terms of market access and sustainability of production. In addition, the rejuvenation of people’s palm oil plantations also needs to be accelerated, considering that many palm oil plantations are old and need to be replanted in order to significantly increase productivity.

Sahat also highlighted the importance of organized palm oil plantation management through institutions such as cooperatives to facilitate palm oil farmers in obtaining ISPO ( Indonesian Sustainable Palm Oil ) certification. This is very important to increase the competitiveness of Indonesian palm oil products in the international market which is increasingly paying attention to sustainability aspects.

The government also needs to pay attention to degraded lands in eastern Indonesia that can be used as oil palm plantations, as an effort to equalize the economy. Thus, in addition to increasing oil palm productivity, the expansion of oil palm plantations can also support development in less developed areas.

Ultimately, to ensure the sustainability of the palm oil industry, Sahat emphasized the importance of integrated and effective management. One solution is to form a special authority body directly under the President to handle this sector, considering the complexity of the palm oil industry that involves many ministries. 

Through this comprehensive policy, Indonesia seeks to maintain a balance between economic development and environmental preservation. The expansion of oil palm plantations, which utilize degraded land, is the right choice to support food security, energy, and palm oil exports without sacrificing forest sustainability. This policy is also expected to improve the welfare of oil palm farmers and encourage economic equality throughout Indonesia.

)* The author is a contributor to Jendela Baca Nusantara 

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