Encourage Institutional Strengthening And Palm Oil Farmers Partnership, Improve Sustainable Economy

Deputy Governor Of Kaltara Inkong Ala/STIMEWA PHOTO

TARAKAN Provincial Government (Pemprov) of North Kalimantan (Kaltara) is committed to encouraging progress in all sectors, including in the oil palm plantation sector as one of the motors driving the regional economy.

This commitment was emphasized by the Deputy Governor (Deputy Governor) of Kaltara Ingkong Ala in the workshop for the Strengthening of Institutions and Partnerships for Oil Palm Farmers to take place at the Ballroom Hotel Lotus, Monday, May 26.

Deputy Governor Ingkong representing the Governor of Kaltara Zainal A. Paliwang, appreciated the initiative of the Regional Leadership Council (DPW) of the Indonesian Palm Oil Farmers Association (Apkasindo) Kaltara which has initiated this strategic forum.

"This workshop is an important momentum to strengthen farmer institutions as well as encourage partnership models that benefit all parties," said Deputy Governor Ingkong.

He emphasized the importance of synergy between oil palm farmers, local governments, and large palm oil plantation companies to create a healthy, fair, and sustainable partnership relationship.

The palm oil sector is said to be the backbone of Kaltara. Based on data from the Central Statistics Agency in 2023, it is recorded that Kaltara has an area of oil palm planting reaching 39,466.5 hectares with a production of 75,739 tons.

Meanwhile, Nunukan Regency is listed as the largest oil palm plantation area, which is 33,111.3 hectares.

"The contribution of palm oil sub-sectors to the Gross Regional Domestic Product (GDP) of Kaltara in 2022 reached IDR 3.9 trillion, making it the plantation commodity with the highest contribution compared to other commodities," he explained.

However, various challenges were also faced by oil palm farmers, such as inequality in bargaining positions, limited access to technology and financing, and not yet optimal partnership patterns.

Deputy Governor Ingkong encourages the acceleration of downstream infrastructure development, such as palm oil processing plants.

Currently, Kaltara has 20 palm oil processing plants spread across four districts, but the capacity is still not adequate to absorb all production results.

The Kaltara Provincial Government is committed to strengthening assistance, strengthening the institutional capacity of farmers, and supporting the role of Apkasindo as a forum for the struggle for the aspirations of oil palm farmers.

"The target contribution of the palm oil sector to Regional Original Revenue (PAD) in 2024 is IDR 56.35 billion, we must achieve it with cooperation and joint efforts of all parties," he said.

Deputy Governor Ingkong also officially launched the Merah Putih Cooperative as a new forum in strengthening the economic institutions of the palm oil farmers in North Kalimantan.