Palm Oil Rejuvenation Will Produce Value Added Productivity

INDUSTRY.co.id - Jakarta - The Ministry of Agriculture said the palm oil rejuvenation program will be able to generate value-added productivity of up to Rp125 trillion per year if the entire palm oil plantation is capable of producing at least 8 tons of crude palm oil (CPO).

"If it can be increased to 8 tons of CPO per hectare, every year we can get the added value of productivity of Rp125 trillion," said Director General of Plantation of the Ministry of Agriculture, Bambang, to the press in Jakarta on Thursday (19/10/2017).

According to Bambang, of the total 11.9 million hectares of Indonesian oil palm plantations there are 4.7 hectares of smallholder plantations or 48%. A total of 2.4 million hectares of oil palm plantations are still being developed in the traditional way by farmers.

"The palm oil plantation is not derived from a good seed source, and now it grows millions of hectares, therefore its productivity is low, only one to two tons of CPO per hectare of average productivity," he said.

Bambang rate, with palm oil renewal program productivity can be increased up to 8 tons of CPO per hectare per year and create added value of Rp125 trillion. "It is very possible because it is planted is a seed that lacks quality requirements," said Bambang.

Bambang added that the added value is new from the production side of CPO. Later, the CPO will be processed again into derivative products and there will be involved in transportation and employment services for the industry.

For the rejuvenation program, the funding is provided by the BPPK (BPPK) of Rp25 million per hectare.

The program has started in Musi Banyuasin, South Sumatera, last week amounted to 4446 hectares. This year the government is targeting to rejuvenate palm oil plantation up to 20,780 hectares.