East Kalimantan Declares Support for National Palm Oil Industry Downstreaming Program
28/01/2024 (Tempo.co), East Kalimantan - The East Kalimantan provincial government declared that they fully support the downstreaming program of the national palm oil industry that aims to make the palm oil plantation sector as one of the mainstays of the Indonesian economy.
"This downstreaming program is very important to increase the economic and social benefits of the palm oil industry, for farmers, entrepreneurs, and the wider community," Head of the East Kalimantan Plantation Office Ahmad Muzakkir stated on Tuesday.
Muzakkir said his side is ready to support the central government's policies and programs in the palm oil industry.
According to the office head, East Kalimantan has vast potential to develop the palm oil downstreaming industry, as it is one of the largest palm oil-producing provinces in Indonesia.
"Palm oil is East Kalimantan's leading commodity, with a (plantation) area of 1.4 million hectares, comprising 972 thousand hectares owned by large private companies and 373 thousand of smallholder plantations," he stated.
East Kalimantan's production of fresh fruit bunches (FFB) reached 19.2 million tons or equivalent to 3.8 million tons of crude palm oil (CPO) per year.
Muzakkir said, with the innovation of palm oil plantation technology recommended by the Ministry of Agriculture, there is a huge potential to establish a mini palm cooking oil factory (Pamigo).
He said independent plantation smallholders, with the FFB raw materials, have the opportunity to open Pamigos.
With the provincial budget support, Muzakkir said his side has helped build 12,472 hectares of smallholder plantations that are spread across seven districts and cities, 31 sub-districts, and 66 villages, involving 206 farmer groups and 8,076 households.
In 2023, the East Kalimantan Plantation Office recorded a budget absorption of around 95.16 percent and was ranked sixth nationally, and almost all of its programs were well-implemented.