Fertiliser Prices Rise - Palm Oil Rejuvenation Hindered, Threatening Indonesia's CPO Production

Jakarta, CNBC Indonesia - The Chairman of the Indonesian Palm Oil Farmers’ Association (Apkasindo), Gulat Manurung, has highlighted several challenges faced by independent farmers in enhancing productivity. Manurung noted that the People’s Palm Oil Rejuvenation Programme (PSR), aimed at replacing old and unproductive palm trees, remains hindered by regulations, including overlapping land legality issues with forest areas. On the other hand, farmers are striving to increase production through proper maintenance of existing plants via effective fertilisation, but they are constrained by the rising prices of fertiliser. Apkasindo hopes for government support to advance the PSR programme; therefore, farmers are advocating for the establishment of the Indonesian Palm Oil Authority to aid in the development of the palm oil sector. Apkasindo also promotes the development of bioenergy from palm oil, namely biodiesel, as a sustainable energy source amid the Middle East conflict and rising fossil fuel prices. This situation presents an opportunity for Indonesia to develop the palm oil sector through upstream sector improvements and increased farmer production via simplified regulations.