The national palm oil industry is not doing well. Production declined four this year. The target of 90 million tonnes in 2045 is far from over. The main culprits are stalled rejuvenation, trade barriers and domestic policies.
The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found inPlantation workers loaded fresh fruit bunches onto a private company's truck at a palm oil plantation in Langkat Regency, North Sumatra, on Wednesday .
"The national palm oil production has peaked and is currently on a declining trend. We must avoid the same fate as the national sugar industry, which was once the second largest in the world but then suffered due to inappropriate and non-conducive policies," said Eddy. "If we can increase the production of smallholders' palm oil by 0.5 tons of CPO per hectare per year, the increase in land area will already reach 3.2 million tons," said Fadhil.
CPO production has decreased over the past four years after reaching a peak in 2019 at 51.8 million tons. The decline began in 2020 with only 47.03 million tons, followed by 46.88 million tons in 2021, and 46.72 tons in 2022."Our national palm oil industry is currently facing declining production coupled with rising production costs," said Fadhil.
However, at that time the price of CPO was high due to the inability of sunflower seed oil to be exported from Russia and Ukraine because of the war. Nevertheless, Indonesia did not benefit from the price increase due to the export suspension. Meanwhile, the price at the farmer level dropped drastically, while farmers in other producing countries enjoyed soaring prices.
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