Business · Companies · 11 hrs ago
Indonesia urges private investment to reach small-scale palm oil farmers
Indonesia’s Finance Minister Suahasil Nazara called for private investment to reach small-scale palm oil farmers and support the wider industry.
Indonesia has more than 16.8 million hectares of palm oil plantations, and smallholders manage about 41% of them.
Suahasil said raising productivity on existing plantations should be a priority, so farmers can earn more without putting added pressure on forests.
He wants investment to develop higher-value products, including food ingredients, chemicals and bio-based materials, as well as palm-based fuels.
Government agencies and development finance bodies could use risk-sharing, technical support and project preparation to help attract private funding.
Smallholders should take a larger role across the industry, with better access to finance, technology, markets and knowledge.
The government says it has reclaimed 6.2 million hectares of forest land used unlawfully since February 2025, and Suahasil said credible law enforcement is needed to protect the environment and the industry’s sustainability.
Finance Minister Suahasil Nazara urged private investors to support Indonesia’s small-scale palm oil farmers and the wider industry value chain.
He said investment should improve productivity, strengthen downstream processing and create better-quality jobs.
Indonesia has more than 16.8 million hectares of oil palm plantations, about 41 percent of them managed by smallholders.
Suahasil said raising productivity on existing plantations should help increase farmers’ incomes without putting more pressure on forest areas.
He called for sustainability, public-sector support to attract investment and a greater role for smallholders in the industry.
- Who
- Indonesia’s Finance Minister Suahasil Nazara.
- What
- He urged private investment to reach smallholder farmers and support productivity, downstream industries and better-quality jobs.
- When
- He spoke at an event on Tuesday, October 13; the article was published October 14, 2026.
- Where
- Plantation360: Mobilizing Private Capital for More and Better Jobs, in Bangkok, Thailand.
- Why
- To raise smallholder incomes and productivity, develop the industry’s value chain and support inclusive growth while protecting the environment.
This story does not have two clearly opposing sides.
The government task force began action to regulate forest areas, according to Suahasil.
Suahasil spoke at the Plantation360 event in Bangkok.
CNN Indonesia published its report on Suahasil’s call for investment.
- Total oil palm plantation area
- More than 16.8 million hectares
- Smallholder share
- About 41 percent of plantations
- Event
- Plantation360: Mobilizing Private Capital for More and Better Jobs
- Event location
- Bangkok, Thailand
- Forest areas returned
- 6.2 million hectares since February 2025
What people are saying
Investasi perlu diarahkan tidak hanya pada peningkatan produksi, tetapi juga pada pengembangan seluruh rantai nilai industri, termasuk penguatan kapasitas pekebun rakyat dan penciptaan nilai tambah yang berkelanjutan
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