Partnership for Palm Oil Revolution

Oil palm plantations in Indonesia have been developed since 1911. Prior to 1980, palm oil planters were only conducted by private corporations and state-owned enterprises. The mastery of capital, technology, management and markets required for oil palm plantation business is generally far from farmers ability, making it difficult for individual farmers to enter the palm oil plantation business.

Growing together becomes an important aspect of oil palm plantations in remote areas. Besides sustainability economic aspects, oil palm plantations are also determined by the synergy between large plantations, smallholders, small and medium-sized plantation suppliers and communities around the plantation.

The partnership of plantation companies with oil palm farmers becomes a force in the development of national oil palm plantations. The presence of this partnership, making oil palm plantations sustainable to be developed in the future. As a result, oil palm plantations are now developing in various corners of the archipelago.

Development of Indonesian oil palm plantations in its development has imposed at least four forms of partnership, namely (1) core-plasma partnership which is partnership between core companies (BUMN and private), (2) Partnership of independent palm oil farmers between independent palm oil plantation with state-owned and private , (3) Partnership with SME suppliers of goods and services, and (4) Partnership with surrounding communities as part of industrial estate community

The major changes generated by oil palm plantations can be seen from the increasing production of palm oil that dominates the world’s palm oil market, shifting soybean oil and other vegetable oils.

Therefore, partnership in palm oil has generally increases from year to year. The existing partnership form is based on mutual principles so that existing partnerships can be balanced and sustainable. The existing partnership is still less than demand of local communities. The need for partnership of the community will gradually be fulfilled by the growing growth of plantation companies. oil palm partnership should be maintained and improved on an ongoing basis to carve out new achievements in oil palm plantations.

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