30/07/2026 (Antara News), Pangkalan Bun, C. Kalimantan - Indonesia's smallholder farmers manage 41 percent of the country's oil palm plantations, underscoring their central role in the industry and challenging the perception that palm oil production is dominated by large corporations, the Plantation Fund Management Agency (BPDP) said.

Speaking at a media briefing on the sustainable palm oil industry in Pangkalan Bun, Central Kalimantan, on Wednesday, BPDP Director of Finance, General Affairs, Compliance and Risk Management Zaid Burhan Ibrahim said smallholders are vital to Indonesia's palm oil supply chain.

“People often view palm oil only from the perspective of large companies, yet data show that 41 percent of the national palm oil industry is managed by communities,” Zaid said.

“Smallholders are not merely an accessory to the palm oil industry, but are key actors in the national palm oil supply chain,” he added.

Smallholder plantations are spread across major producing regions, including Aceh, North Sumatra, Riau, South Sumatra, Kalimantan and Sulawesi, generating more than 16 million tons of palm oil annually while continuing to improve productivity.

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Zaid said the contribution of both smallholders and corporate producers extends well beyond plantation output, supporting broad economic activity across the palm oil value chain.

The industry employs about 16.5 million people in plantations, logistics, transportation, trade, processing industries and micro, small and medium-sized enterprises, making it one of Indonesia's largest sources of jobs.

In major producing regions, palm oil investment has also supported infrastructure development, created new economic centres and strengthened regional economic growth, he said.

“When we talk about palm oil, we are actually talking about the welfare of millions of Indonesians,” Zaid said, stressing that the industry's long-term sustainability depends on the continued participation and productivity of smallholders.

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