Oil Palm Partnership-Corporations Important Pillars of the National Palm Industry

The future of the national palm oil industry is predicted to be determined by a people’s palm plantation whose share will reach 60 percent. Therefore, palm oil partnership of corporations is increasingly important and determines the sustainability of the national palm oil industry

Various patterns of palm-oil corporation partnership built since the early 1980s have made great achievements in the national palm oil industry. The first wave pattern of partnerships such as PIR-Lok, PIR-SUS, PIR-trans, PIR-KKPA and other partnerships developed not only succeeded in making palm oil growers into one of the important actors of national oil palm plantations but also has brought Indonesia to become the largest producer of oil palm world. The partnership which is a social capital also creates social inclusion that represents the face of national oil industry development.

The First Wave Partnership has succeeded in expanding (extensification) of national oil palm plantations. So for the replanting movement of the people’s palm and increasing the productivity of community palm plantation (intensification) will be more easily succeed by moving the existing partnership pattern. Through the Second Wave Partnership, it is expected to accelerate the industrialization of oil palm plantations, especially the increase in palm oil productivity from 3.4 to 8 tons of oil per hectare. The second wave partnership is increasingly very strategic, as the people’s palm oil plantation will become the biggest actor of national oil palm plantation in the next few years. PASPI predicts, by 2030 the share of oil palm plantations will increase from 42 percent today to 60 percent of the national palm oil estate. The future of the national oil palm plantation is in the hands of people’s palm plantations. Therefore, without the development and quality improvement of the partnership, the supply of palm oil to the downstream industry will be disrupted.

In addition to replanting and productivity improvements, the community-palm oil partnership will also facilitate the realization of a management level that meets the principles of sustainability (sustainability). The level and quality of people’s palm oil sustainability will be more easily achieved by managing the public-private partnership of palm-corporations.

Even this second wave of people-corporations’ palm-oil partnership will further unify, synergize all power (social, economic, political) into a Big-push development not only for the palm oil industry itself but also for the national economy as a whole. A big growth engine for the national economy will be born from the palm oil industry with its partnership pattern.

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