Deputy Home Affairs Minister Akhmad Wiyagus has urged regional governments in palm oil production areas to strengthen governance of the commodity through six strategic steps.
These steps include training and capacity building for farmers and planters, increasing the added value of plantation commodities, collaboration and partnerships, monitoring and evaluation, synchronizing regional policies with central policies, and strengthening governance and data.
"I also request that the governors, regents, and mayors of palm oil-producing cities internalize these six steps in regional planning and budgeting documents, and that the palm oil revenue sharing fund (DBH) be utilized effectively and effectively," Wiyagus added in a statement.
This was conveyed by the Deputy Minister of Home Affairs at the Indonesian Palm Oil Producing Districts Association (AKPSI) Workshop and Palm Oil Expo.
Wiyagus said the six strategies are key to ensuring that palm oil development not only increases productivity and competitiveness, but also creates jobs, increases added value in the region, and strengthens the welfare of smallholders.
He explained that strengthening palm oil governance is in line with the mandate of Article 33 of the 1945 Constitution. This effort also supports the implementation of the President's Astacita as stated in the 2025–2029 National Medium-Term Development Plan (RPJMN).
Within this framework, the palm oil sector is not only positioned as a plantation commodity, but also as an instrument to support national development.
Through good governance, the palm oil sector is expected to strengthen energy security through biodiesel development, encourage the downstreaming of natural resource-based industries, and expand economic equality through the empowerment of smallholder farmers.
"Palm oil is a successful example of downstream processing. From CPO (crude palm oil) to cooking oil, oleochemicals, biofuels, and even pharmaceutical and cosmetic products, it's this downstream processing that creates jobs and added value in the region," he said.
He added that successful palm oil management would have an impact on optimal regional development.
In addition, these efforts will also provide broad benefits, including creating jobs, increasing industrial added value, and supporting economic growth in the region.
