"We call on the Agriculture Ministry to materialize the replanting program for smallholder palm oil plantation using the fund managed by the Indonesia Oil Palm Plantation Fund Management Agency (BPDPKS)," Amin stated at the opening of the 15th International Palm Oil Conference (IPOC) and 2020 Price Outlook in Nusa Dua, Bali, on Thursday.
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The government has targeted to replant 185 thousand hectares of palm oil plantations.
Amin remarked that the national palm oil industry has contributed significantly to the country's economy, so the government’s support is urgently elicited to tackle global challenges.
"Last year, foreign exchange from palm oil exports had reached Rp270 trillion. The palm oil industry has sparked economic growth in some remote areas in North Sumatra, East Kalimantan, and West Sulawesi," he noted.
Earlier, Chairman of the Indonesian Palm Oil Association (GAPKI) Joko Supriyono had noted that the government should give due priority to the palm oil replanting program in its national sustainable policy.
The government should also increase its overseas market, as 70 percent of Indonesia's palm oil production has targeted the export market.
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Supriyono called for the need to boost the domestic market, with the development of palm oil-based biofuel as renewable energy.
Indonesia's crude palm oil production rose by 14 percent to reach 34.7 million metric tons in the first eight months of 2019, from the corresponding period last year, while exports of the commodity rose by 3.8 percent to touch 22.7 million tons, according to data furnished by an industry group.
The domestic consumption of palm oil soared 44 percent to reach 11.7 million tons due to strong demand for biodiesel.
The government's B-20 policy makes it mandatory for diesel fuel used in transportation to contain at least 20 percent biodiesel. The biodiesel content requirement will be increased to 30 percent in January.
China remains the biggest export destination, at 150 thousand tons during this period, while crude palm oil exports to the United States amounted to 90 thousand tons. Related news: Netherlands expected to tackle discrimination against RI's palm oil
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