Agriculture Energy News

Indonesia Finally Creates Palm Oil Chamber

Jakarta, Indonesia | June 01, 2007 by D-8 Secretariat

After being delayed for seven years, the Indonesian Palm Oil Chamber (DMSI) has been finally set up, along the lines of the Malaysian Palm Oil Board (MPOB).

Indonesian Agriculture Minister Anton Apriyantono said DMSI, like MPOB, will be responsible for improving the image of Indonesian palm oil on the world stage. DMSI, which comprises government and private sector representatives as well as experts, is headed by the agriculture minister. Heading the management is Franky Oesman Widjaja, who represents the producers.

“The public and private sector board members need to strive hard to ensure that Indonesia does not trail other palm oil producers,” Antara news agency quoted the minister as saying.

He expressed confidence that the establishment of DMSI will enable Indonesia to beat Malaysia into being the world’s biggest palm oil producer.

Indonesia has about 5.6 million ha of oil palm plantations with a total output of 16.5 million tons last year.

DMSI wants palm oil and its products to be global market leaders and become a major contributor to Indonesia’s economic strength, said Anton. On the high cooking oil price in the local market, he said DMSI will seek an effective mechanism soon to overcome the problem.

Franky Oesman said palm oil production, especially by smallholders, is still low due to, among others, low quality seedlings, below optimal land use, insufficient funds for replanting and fertiliser supply problems at the national level.

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