Co-operatives Ministry Ready to Support Oil Palm Farmers’ Co-operatives
JAKARTA — President Prabowo Subianto’s administration is giving full support to oil palm farmers to strengthen their capabilities in both upstream and downstream sectors through co-operatives. The Indonesian Oil Palm Farmers Association (Apkasindo) has been asked to play a more active role in encouraging farmers to enter the palm oil processing sector.
The message was delivered at the opening of the Third National Meeting of Indonesian Oil Palm Farmers (PENAS III), organised by Apkasindo at the Menara Peninsula Hotel in Jakarta on Wednesday (28 October 2026). The event brought together various stakeholders to discuss the future direction of the national palm oil industry.
The event, which marked Apkasindo’s 26th anniversary, was supported by the Plantation Fund Management Agency (BPDP) and attended by Apkasindo officials from 25 provinces. Attendees included National Development Planning Minister and Bappenas chief Prof. Rachmat Pambudy, Co-operatives Minister Dr Ferry Juliantono, and chair of the Apkasindo central board’s advisory council, retired Indonesian Army General Moeldoko.
At the opening, Prof. Rachmat Pambudy stressed that downstream processing could not be optimised without first addressing problems at the upstream level. The government was committed to tackling these fundamental challenges in stages.
“Developing downstream processing requires a strong foundation at the farming level. That is why improving cultivation activities and their support systems is an integral part of the palm oil downstreaming agenda,” Rachmat said.
Prof. Rachmat said he had been directly tasked by President Prabowo Subianto with implementing the palm oil downstreaming programme. He therefore called on oil palm farmers, including Apkasindo members, to provide their full support so development plans could be carried out effectively and deliver direct benefits to businesses, including farmers.
Meanwhile, Co-operatives Minister Ferry Juliantono proposed a concrete measure: developing palm oil mills owned by co-operatives. His ministry said it was ready to support farmers’ co-operatives as they enter the processing industry and seek financing through the Revolving Fund Management Institution (LPDB).
“I encourage oil palm farmers’ co-operatives to expand their role into the processing industry. Co-operatives are needed for downstreaming so that farmers can gain greater benefits from the palm oil business chain,” Ferry said.
Ferry also outlined plans for co-operative-based mills with a capacity of about 60 tonnes per hour, supported by around 7,000 hectares of plantations. The initiative was considered a strategic way to improve the welfare of smallholders in various regions.
“We are ready to support Apkasindo co-operatives in setting up palm oil and crude palm oil (CPO) mills,” Ferry said.
On partnership issues, Ferry encouraged close co-operation between farmers’ co-operatives and PT Agrinas Palma Nusantara in managing oil palm plantations. The partnership is expected to strengthen farmers’ bargaining position at the local level.
“I ask Apkasindo to help strengthen its member co-operatives as business partners,” Ferry said.