MARKET DEVELOPMENT
Indonesia to Legalize Land Ownership for Small Farmers in Palm Oil Industry
Indonesia to Legalize Land Ownership for Small Farmers in Palm Oil Industry
14/03/2017 (GIVnews.com) – The government is drafting a presidential regulation (Perpres) to legalize land ownership status for small farmers in the palm oil industry. This is according to Agrarian and Spatial Planning Minister Sofyan Djalil.
The move aims to smoothen the implementation of a re-planting program in which small farmers, many of whom cultivate palm oil in protected forest areas, will be provided with assistance funds. However, only farmers with valid land certificates will be eligible to receive such funding. The palm oil replanting program is being carried out by the Indonesian Palm Oil Estate Fund (BPDP) as reported by tribunnews.com.
Indonesia is currently the world’s largest palm oil producer and exporter. Together with Malaysia, whose total palm oil production comes in second, Indonesia account for around 85-90 percent of total global palm production.
But, when speaking to reporters last Thursday (9/3) Minister Sofyan did not mention the size of the current land illegally owned by small palm oil farmers.
Meanwhile, Fadhil Hasan, executive director of the Indonesian Palm Oil Producers Association (Gapki), said that the total land currently owned by small palm oil farmers only amounted to 3.8 million hectares. This accounts for about 41 percent of the country’s total of 11.3 million hectares.
As much as 70 percent of the 11.3 million hectares is located in Sumatra, while the largest part of the remaining 30 percent is in Kalimantan, according to Fadhil Hasan.
A 2014 data released by Ministry of Agriculture’s website showed that 51.6 percent of the country’s total palm oil plantations was owned by private investors while 6.8 percent belonged to the state. And, the remaining 41.6 percent is owned by non-private entities referred to as ‘the people’.
Palm oil is one of Indonesia’s leading export commodities. Major buyers of Indonesian palm oil are India, China, Pakistan, the Netherlands, Malaysia, Egypt and Bangladesh.
The move aims to smoothen the implementation of a re-planting program in which small farmers, many of whom cultivate palm oil in protected forest areas, will be provided with assistance funds. However, only farmers with valid land certificates will be eligible to receive such funding. The palm oil replanting program is being carried out by the Indonesian Palm Oil Estate Fund (BPDP) as reported by tribunnews.com.
Indonesia is currently the world’s largest palm oil producer and exporter. Together with Malaysia, whose total palm oil production comes in second, Indonesia account for around 85-90 percent of total global palm production.
But, when speaking to reporters last Thursday (9/3) Minister Sofyan did not mention the size of the current land illegally owned by small palm oil farmers.
Meanwhile, Fadhil Hasan, executive director of the Indonesian Palm Oil Producers Association (Gapki), said that the total land currently owned by small palm oil farmers only amounted to 3.8 million hectares. This accounts for about 41 percent of the country’s total of 11.3 million hectares.
As much as 70 percent of the 11.3 million hectares is located in Sumatra, while the largest part of the remaining 30 percent is in Kalimantan, according to Fadhil Hasan.
A 2014 data released by Ministry of Agriculture’s website showed that 51.6 percent of the country’s total palm oil plantations was owned by private investors while 6.8 percent belonged to the state. And, the remaining 41.6 percent is owned by non-private entities referred to as ‘the people’.
Palm oil is one of Indonesia’s leading export commodities. Major buyers of Indonesian palm oil are India, China, Pakistan, the Netherlands, Malaysia, Egypt and Bangladesh.