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Palm Oil Operational Growth Indicators
Comparative growth in production and yield for major plantations.
Primary Sources
Palm Oil Farmers Must Begin Entering the Industrial Level
Image: REPUBLIKA REPUBLIKA.CO.ID, JAKARTA – Indonesian palm oil farmers play a highly significant and strategic role in maintaining the sustainability of the national palm oil industry. This is reflected in their substantial contribution to land management, accounting for more than 40 per cent of the total national palm oil plantation area of around 16.8 million hectares. With such a large share, farmers are not merely complementary actors but the primary foundation of Indonesia’s palm oil supply chain. However, the role of palm oil farmers still needs to be enhanced in a more systematic and targeted manner. To date, the majority of farmers remain in the position of traditional cultivators with limitations in access to technology, financing, and downstream processing. Therefore, concrete efforts are required to encourage and facilitate the transformation of farmers to advance, not only as raw material producers but also as part of an industrial ecosystem with added value. With an estimated farmer plantation area of around 7 million hectares, the industrialisation of palm oil farmers will have a very significant impact on strengthening the competitiveness of Indonesian palm oil products in the global market. Enhancing farmers’ capacity in aspects of productivity, quality, and processing will be key to facing international competition while ensuring the long-term sustainability of the palm oil industry. “Palm oil farmers must be brought into the era of industrialisation, so they can build businesses from upstream to downstream. In this way, farmers’ dependence on other parties will decrease, their bargaining position will improve, and they will have much greater profit opportunities,” said Kacuk Sumarto, Chairman of RSI (Rumah Sawit Indonesia), at the Limited Discussion Forum (FDT) at Menara Agrinas Palma in Jakarta on Monday (27 April 2026). At the FDT themed “Accelerating the Rejuvenation of People’s Palm Oil as a Step to Bring Farmers into the Industrial Era,” several stakeholders from various agencies attended as speakers. Among them were Togu Rudianto, Chairman of the Palm Oil Cultivation Group of the Directorate General of Plantations of the Ministry of Agriculture, representing Director General of Plantations Ali Jamil, and Suprapto, Head of the Subdirectorate for Forest Area Affirmation of Region I at the Directorate of Forest Area Affirmation of the Ministry of Forestry, representing Ade Tri Ajikusumah. In addition, Farid Hidayat, Director of Basic...
Sarawak Plantation rehabilitates 6,000 ha troubled oil palm estates
KUCHING: Sarawak Plantation Bhd has fully rehabilitated some 6,000 ha of oil palm estates which were plagued with various inefficiencies.Executive director Datuk Wong Kuo Hea said these “problematic” planted areas faced common issues such as stunted palm growth, inaccessibility due to high flooding, weeds and other upkeep matters.“These areas were mostly young mature fields in critical need of rehabilitation.“With the final balance of 20 ha normalised in 2025, the group has successfully completed the normalisation of all identified areas. These areas are expected to support ongoing production growth,” he said in the company’s 2025 annual report.The Sarawak Plantation group had identified the 6,000 ha which needed enhancement to boost fresh fruit bunch (FFB) production, after Ta Ann Holdings Bhd emerged as the former’s largest shareholder with the acquisition of a 30.39% stake for RM169.9mil in 2018.Simultaneously, Sarawak Plantation has made concrete efforts to recover some 6,400 ha of oil palm estates encumbered by local villagers through engagement.“Over these past years, the group has managed to recover approximately 4,300 ha. The mature areas remaining encumbered are about 2,100 ha.“Despite numerous challenges faced in recovering these encumbered areas, the group remains dedicated to recovering all or at least most of them,” said Wong, who is also Ta Ann managing director.As of end-2025, the Sarawak Plantation group’s total immature fields stood at about 8,900 ha, accounting for about 30% of its total harvestable oil palm estates of 29,460 ha spread over 13 estates with a total land size of 42,745 ha.Last year, Wong said the group incurred about RM68mil on bearer plants expenditure primarily related to the development, planting, field costs and other indirect costs for newly planted areas as well as upkeep of its existing immature areas.Another RM9mil in capital expenditure was spent on the purchase of mobile equipment and other fixed assets to support operational needs.Wong said since Sarawak Plantation had stopped new plantings on peatland several years ago as part of efforts to maintain sustainable and long-term oil palm cultivation, the group’s production growth, therefore, depends on boosting yields from its current and replanted estates.In 2025, the group recorded a 7% growth in FFB production volume to 360,993 tonnes as compared to 337,661 tonnes in 2024. Year-on-year (y-o-y), FFB yield per ha grew by 13% to 17.93 tonnes per ha from 15.91 tonnes...
China helps drive palm oil industry toward greener practices
Workers load palm fruits into a truck at a plantation in Bogor, West Java, Indonesia, on April 26, 2022. [Photo/Xinhua] China's increasing focus on sustainability helps to drive the development of the palm oil industry in more environmentally friendly and socially responsible ways, according to an industry expert.
Palm Oil Magazine - Agrinas Palma Pushes Faster Replanting Program as ...
PALMOILMAGAZINE, JAKARTA - Improving the productivity of Indonesia's smallholder oil palm plantations has become a critical agenda in strengthening the national palm oil industry. With smallholders managing nearly 7 million hectares, or around 42% of the country's total oil palm plantation area, productivity challenges remain one of the sector's most urgent issues. PT Agrinas Palma ...
