Pekanbaru, Riau, May 8 (Antarariau.com) - An academician has tried to draw the attention of President Joko Widodo (Jokowi) to development of palm oil downstream industry.
President Jokowi visited Riau on Tuesday to commission the program of replanting smallholders' oil palm plantations in the region a bid to increase the productivity of smallholder oil palm plantations.
"The program of replanting is good, but the president should also think development of palm oil downstream industry," Prof. Dr Almasdi Syahza of the Riau University told Antara here on Tuesday.
Prof. Dr Almasdi, who is also chairman of the university's Research Center and Devotion to the People (LPPM) said Indonesia has not done much to produce palm oil derivative.
The country has exported most of its CPO production, giving foreign countries high added value that could be produced by processing CPO into various end products, he said.
"If the President truly focuses on the people's economic development, it is time to start going downstream. The results are added value and more jobs," he said.
He went on to say that palm oil business from upstream to downstream would never suffer a loss especially as Indonesia with a population of more than 250 million or the fourth largest in the world, provides a huge market for palm oil products.
He said palm oil products are needed not only in the country but they would always sell in international market despite negative campaigns in Europe.
"Despite the negative campaigns they would never stop needing palm oil products," he said.
Europe has boycotted Indonesian palm-oil-based products mainly biodiesel on allegation that Indonesian oil palm companies have caused extensive damage to the country's tropical forests.
Almasdi said he hoped the working visit to Riau would inspire the president to begin to seriously think of plan to develop palm oil downstream industry .
President Joko Widodo is scheduled to symbolically plant oil palm seed to mark the start of replanting program in the country's largest palm oil producing province. Replanting plan is to cover 328 hectares of smallholder oil palm plantations in Rokan Hilir, on Wednesday .
Under the program the president will hand over assistance including cash, oil palm seeds and seeds for inter-cropping such as corn seeds. The president will also distribute land certificate.
The replanting program would take place in the village of Kepenghuluan Pelita, in the district of Rokan Hilir.
There would be 131 families with 328 hectares of plantations grouped in the village cooperating (KUD) of Subur Makmur to receive the assistance all worth Rp8.2 billion.
"The President wants farmers' oil palm plantations more productive with production of at least 10 tons of fresh fruit bunches per hectare. Currently, the production ranged only from one to 5 tons per hectares," chairman of the committee for the program of replanting farmers' oil palm plantations of the Oil Palm Plantation Fund Management Body of the Finance Ministry Benny Septialdi said. ***
President Jokowi Asked to Start Developing Palm Oil Downstream Industry
