Why Downstreaming in Palm Oil Industry is Still Lacking

Oil palm rejuvenation only reached 9 percent in 2022 and 14 percent in 2021.

Jaffry Prabu Prakoso

16 Agt 2023 - 17.38
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Why Downstreaming in Palm Oil Industry is Still Lacking

Illustration - Processing of oil palm fruit into CPO./Bisnis.com

Bisnis, JAKARTA – The Indonesian Palm Oil Farmers Association (APKASINDO) has revealed issues with the downstream of the palm oil industry, which remains suboptimal due to the limited involvement of palm oil farmers.

Gulat Manurung, Chairman of APKASINDO central board, said the government should encourage palm oil farmers to develop various derivative products, including crude palm oil (CPO).

“The government's mistake is allowing palm oil farmers to remain upstream. The problem of downstream in the palm oil industry is simple. Just give out some of the roles to farmers,” Gulat told Bisnis during the Oil Palm Advocacy event in Jakarta on Monday (8/14/2023).

In the process of industrial downstream, palm oil farmers are left with a predicament due to the substantial investment required to establish processing plants, which necessitates a minimum of 30 percent of total investment.

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Editor: Yusuf Waluyo Jati
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Why Downstreaming in Palm Oil Industry is Still Lacking

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