Bandung, West Java (ANTARA Sulsel) - The palm oil industry has played a vital role by contributing US$15.8 million to Indonesia`s export earnings, Agriculture Ministry`s Secretary General Hari Priyono stated here on Thursday.
The industry is very strategic as 4.4 out of the 10.5 million hectares of palm oil plantations belong to farmers, he remarked while opening the Indonesia Palm Oil Conference and 2015 Price Outlook.
"It is not true that the palm oil industry in Indonesia is dominated by big plantation companies," he said.
Indonesia`s crude palm oil production currently reaches 27.8 million tons a year, and the industry absorbs five million workers, he pointed out.
"Current international issues are food and energy, but palm oil is also important as a renewable energy source," he affirmed.
The current problems faced by the industry in Indonesia are productivity, which is still lower than in Malaysia, and rejuvenation, which is still slow, he remarked.
With regard to environmental issues, Priyono stated that out of the 200 palm oil companies, only 63 have so far participated in the Indonesia Sustainability Palm Oil (ISPO) program.
"We have been encouraging others to participate in it," he noted.
The conference`s chairman of the committee, Mona Surya, said the event was attended by 1,276 delegations from 20 countries.
He hoped that their participation would help to improve the industry.
"Competition between palm oil and other commodities is getting tighter. In view of that, companies and the government must cooperate to increase the competitive power of the Indonesian palm oil industry," he added.
Penerjemah : Bessr/O Tamindael
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