Smallholders manage 41% of palm oil in Indonesia, BPDP says
In Indonesia, Antara reported that Indonesia’s smallholder farmers manage 41% of the country’s oil palm plantations, underscoring their central role in the industry and challenging the perception that palm oil production is dominated by large corporations, the Plantation Fund Management Agency (BPDP) said.
BPDP Director of Finance, General Affairs, Compliance and Risk Management Zaid Burhan Ibrahim said smallholders are vital to Indonesia’s palm oil supply chain.
“People often view palm oil only from the perspective of large companies, yet data show that 41% of the national palm oil industry is managed by communities,” Zaid said.
Smallholder plantations are spread across major producing regions, including Aceh, North Sumatra, Riau, South Sumatra, Kalimantan and Sulawesi, generating more than 16 million tons of palm oil annually while continuing to improve productivity.
The industry employs about 16.5 million people in plantations, logistics, transportation, trade, processing industries and micro, small and medium-sized enterprises, making it one of Indonesia’s largest sources of jobs.
Category: Food & Agriculture
