South Sumatra Police Chief Highlights Dozens Of Palm Oil Factories Operating Without Core Gardens

South Sumatra Police Chief Inspector General Andi R. Djajadi in Palembang, Tuesday (9/12/2025). BETWEEN/Ahmad Rafli Baiduri

PALEMBANG - South Sumatra Police Chief (Sumsel) Inspector General Andi R. Djajadi highlighted the presence of dozens of palm oil mills (PKS) in the province that operate without core gardens that have the potential to disrupt the sustainability of the palm oil industry.

During a coordination meeting on the supervision of oil palm plantations, the Kapolda said there were around 22 PKS without core gardens spread across several areas, namely six companies in Banyuasin Regency.

Then six companies in Muara Enim, five companies in Musi Rawas, and five companies in Musi Banyuasin Regency.

"Regarding their legality, they do have permits, but the problem is, there is no guarantee of supply of raw materials from the garden itself," he said as quoted by ANTARA, Tuesday, December 9.

According to him, the existence of factories without core gardens is considered at risk of triggering unhealthy competition in the absorption of fresh fruit bunches (FFB) as the main raw material for crude palm oil (CPO). In addition, the Kapolda also emphasized the potential for illegal FFB practices, including theft of palm fruit.

"This can be an alternative chain of oil or known to the public with the term ram palm, which is indicated as an illegal place for FFB transactions," he said.

Data shows that the movement of ram oil products in South Sumatra reaches around 40 thousand tons per day. Then, the high number of FFB theft cases became a serious concern.

Throughout 2025, South Sumatra recorded 373 cases of FFB theft, with Musi Banyuasin as many as 133 cases and Musi Rawas 113 cases. A total of 262 cases have been resolved with 456 people named as suspects.

Meanwhile, South Sumatra Governor Herman Deru said the high number of FFB theft cases could potentially affect the plantation investment climate in South Sumatra.

"This theft can make investors doubt, but it also needs to be seen in terms of the needs and behavior of individual perpetrators," he said.

South Sumatra Province has a plantation area of 1,043,489.51 hectares, with 997,559 hectares of oil palm plantations. The number of oil palm plantations reaches 277, with the highest concentration in Banyuasin 67 companies, Musi Banyuasin 60 companies, and OKI 51 companies.