The Three Major Issues of the Palm Sector Should Be Completed

By : Herry Barus And Aldo Bella Putra | Sunday, April 22 2018 - 19:30 IWST

Kebun Kelapa Sawit (Ist)
Kebun Kelapa Sawit (Ist)

INDUSTRY.co.id - Jakarta - Indonesian Palm Oil Entrepreneurs Association (Gapki) revealed to date palm industry in the country is still faced with three major problems that must be resolved soon.

Chairman of Gapki Joko Supriyono in Jakarta, Saturday (21/4/2018) said the three problems, namely the low productivity of plants, the high cost of production and a number of government policies both central and regional counterproductive.

"If these issues are not immediately resolved, the impact will reduce the competitiveness of Indonesian palm oil," he said during the inauguration of the board, the supervisory board and the board of the Indonesian Oil Palm Entrepreneur Association (GAPKI) 2018-2023 period.

Related to the productivity of the garden, Joko said, Indonesia's palm is still less than other producer countries such as Malaysia, Colombia and Thailand, although Indonesia is the world's largest palm oil producer.

Meanwhile, in the field of production costs or "production costs" of oil palm plantations in Indonesia is a high, more than other producer country.

"The best palm oil companies in Indonesia are even still inferior to the worst companies in Malaysia in production costs," he said.

He admitted, one of the triggers of high production costs in Indonesia, namely the emergence of security costs, social costs are difficult to remove and avoid the company.

"It's even complained about the President, has done a lot of deregulation but investment is still slow," he said.

While issues related to government policy, both central government and local government, Joko said, the industry needs regulations that create a conducive climate.

According to him, the policy or regulation is not solely from within the country but also from the government of Indonesia's palm oil export destination such as India which applies import tariff increase or America which always impose tariff and non tariff barrier to imported products.

For that, Joko Supriyono who is also Chairman of Gapki 2013-2018 period states, Gapki must partner with the government, especially in the preparation of policies or regulations so that it will not harm the domestic oil industry.

He said that the current global demand for vegetable oil including palm oil is still growing, ie an average of 5 million tons per year.

"This is an opportunity for Indonesian palm oil to create economic growth and improve the lives of the people," he told the media crew.

Meanwhile, in the management of Gapki period 2018-2023, Joko Supriyono assisted by three vice chairmen, namely Kacuk Sumarto (Vice Chairman of Organization Affairs), Susanto Yang (Vice Chairman of Public Policy Affairs) and Togar Sitanggang (Vice Chairman of Trade and Sustainability Affairs ).

In addition, the position of the Secretary General was held by Kanya Lakshmi Sidarta and the General Treasurer of Mona Surya.

While the number of field leaders reached 15 people and the chairman of the compartment of 51 people. Currently, Gapki has spread in 13 provinces that represent the association in the region.

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