The Provincial Government of East Kalimantan (Kaltim) is intensifying the transformation of the palm oil plantation sector by shifting from merely increasing production to strengthening modern and sustainable governance. This move is taken to ensure the region's leading commodity remains highly competitive in the global market.
Acting Head of the East Kalimantan Plantation Office, Ahmad Muzakkir, stated that the direction of palm oil development policy has now been formulated into five main pillars. The focus includes increasing plantation productivity, improving land legality, implementing sustainability standards, accelerating industrial downstreaming, and integrating technology in plantation management.
Ahmad emphasized that downstreaming is a crucial key for the palm oil commodity to provide more substantial economic added value for the region. Furthermore, the government aims to ensure all plantation activities maintain environmental balance while providing business certainty for both business actors and local smallholders.
In its implementation, various strategic policies have been prepared, such as the Smallholder Palm Oil Replanting (PSR) program, strengthening farmer institutions, and accelerating Indonesian Sustainable Palm Oil (ISPO) certification. These efforts are expected to strengthen mutually beneficial partnerships between large companies and independent smallholders in the field.
The government is optimistic that through an integrated approach, the palm oil sector will become an engine for more inclusive economic growth. Thus, the prosperity generated from this industry is expected to be evenly distributed across all levels of society in East Kalimantan.
