The Governor of North Kalimantan, Zainal Arifin Paliwang, emphasized the importance of modernizing the governance of smallholder palm oil cooperatives in his region. He urged these farmers' economic institutions to transform into independent, professional organizations that are responsive to the latest digital technology developments.
The statement was made by the Governor while opening the Capacity Building training for Smallholder Palm Oil Cooperative Management in Tanjung Selor. The activity, initiated by DPW Apkasindo Kaltara, aims to equip cooperative administrators with a more modern and accountable understanding of management.
Zainal emphasized that palm oil is a leading commodity driving the economy in North Kalimantan. Cooperatives play a strategic role in strengthening farmers' bargaining power, improving member welfare, and serving as a bridge for partnership with the private sector and government.
However, the Governor also highlighted several classic obstacles still faced by palm oil cooperatives, such as suboptimal organizational governance, messy administrative legality, and a lack of financial transparency. Limitations in utilizing information technology are also deemed to hinder operational efficiency.
Through this training, managers are expected to be able to improve supply chains and expand industrial partnerships. Furthermore, the prospects for the palm oil industry in the future are becoming increasingly strategic along with plans to implement the B50 biodiesel program and the high demand for food and national alternative energy.
