Talking About Palm Oil, Moeldoko Reminds People's Plantation Production Is Far From Private: This Is Dangerous, It Needs To Be A Concern

Screenshot of the Presidential Chief of Staff Dr. Moeldoko. (Photo: VOI)

JAKARTA - Presidential Chief of Staff (KSP) Moeldoko said that the productivity of smallholder oil palm plantations is still far behind those of private companies. In the last few years, the gap has even widened even further.

In fact, continued Moeldoko, the role of smallholder plantations in the structure of Indonesia's crude palm oil (CPO) production is extraordinary.

"Even though it has a significant role in production and people's ownership, productivity is still low compared to PBS (large private plantations). Over the past decade this gap has widened," he said in a webinar, Thursday, July 21.

According to Moeldoko, this needs to be a shared focus. Moeldoko assessed that it would be very dangerous if the productivity gap between smallholder plantations and PBS was to widen.

"We need to be concerned about this, it is dangerous if the gap is too high," he said.

Based on Moeldoko's data, in 2010 the productivity of smallholder plantations was 2.5 tons per hectare, while large private plantations were recorded at 2.99 tons per hectare.

Eleven years later, in 2021, the productivity of smallholder plantations will still stand at 2.75 tons per hectare, while large private plantations will increase to 3.84 tons per hectare.

The chairman of the DPP Apkasindo Board of Trustees emphasized that stagnation is a problem that must be addressed. Moreover, the contribution of smallholder oil palm plantations in the production of crude palm oil is quite high.

"I remind you, don't let this go down and down. There is no reason whatsoever. We still have to be vigilant," he said.