Agrinas urged to build palm oil ecosystem with cooperatives
At the National Seminar on Cooperative-Based Palm Oil Optimization and Downstreaming here on Tuesday, Juliantono said Felda could serve as a reference for consolidating smallholder plantations and palm oil farmers through cooperatives.
He noted that despite this smaller land area, Malaysia’s crude palm oil (CPO) production and export volumes remain relatively close to Indonesia’s.
“That means there is a difference in management,” he said.
The minister said Indonesia’s palm oil plantation composition consists of 54 percent large companies, 43 percent smallholder plantations, and 3 percent state plantations.
He said the large share of smallholder plantations needs to be matched with stronger farmer institutions through cooperatives, so they can take on a bigger role in the palm oil industry.
Juliantono expected Agrinas Palma Nusantara to build the ecosystem directly with cooperatives, including by strengthening large-scale CPO sales, extending to export markets.
He also encouraged the ecosystem to strengthen Indonesia’s CPO export capacity and develop downstream industries, including derivative products such as cooking oil.
“We should also export our CPO abroad. That is actually what we want, and we will build that ecosystem so large-scale CPO sales can take place,” he said.
PT Agrinas Palma Nusantara President Director Mohammad Abdul Ghani said Agrinas received a special mandate through Presidential Regulation No. 5 of 2025 to manage palm oil plantations resulting from the crackdown on illegally opened forest areas.
Ghani said Agrinas is required to set aside at least 20 percent of the land entrusted to it as smallholder plots (plasma) for the public, adding that meeting this obligation requires the company to partner with cooperatives in managing the land.
“We will prioritize cooperatives around the land as vendors for plant maintenance, harvesting, and other activities,” he said.
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Translator: Shofi, Kenzu