Video: Business Owners Urge Government to Simplify People's Palm Replanting Programme

The Chairman of the Indonesian Palm Oil Entrepreneurs Association (GAPKI), Eddy Martono, has highlighted several challenges facing Indonesia’s palm oil sector, including stalled production due to delays in the People’s Palm Replanting Programme (PSR). However, GAPKI assures that Indonesia’s Crude Palm Oil (CPO) production of 51 million tonnes still suffices for domestic needs, including the B50 programme. Yet, if domestic production cannot be increased while internal demand rises, exports could decline. The potential drop in Indonesian CPO exports is a major concern for business owners, given Indonesia’s role as the world’s leading palm oil exporter. Should global CPO supply decrease, consumers may turn to other vegetable oils, driving up international prices. Regarding the MinyakKita shortage, GAPKI explains that conflicts have led to a 30% reduction in Indonesian CPO exports, causing the DMO to fall from 1.9 million tonnes to 1 million tonnes, thereby reducing domestic oil production. Moving forward, GAPKI urges the acceleration of the PSR programme and the resolution of all obstacles hindering farmers from replanting, including access to funding assistance of Rp60 million per hectare per farmer. For more details, watch the discussion with GAPKI Chairman Eddy Martono by Serliana Salsabila on Squawk Box, CNBC Indonesia (Friday, 08/05/2026).