Smallholders Drive Palm Oil Industry in Indonesia

Indonesia's smallholder farmers play a crucial role in the country's palm oil industry, managing 41 percent of national plantations. The data from the Plantation Fund Management Agency (BPDP) highlights their significance in the supply chain.

BPDP Director Zaid Burhan Ibrahim emphasized that smallholders are not just an accessory to the industry but key actors in it. Their contributions extend beyond plantation output, supporting economic activity across the palm oil value chain.

The smallholder plantations generate over 16 million tons of palm oil annually and support infrastructure development in major producing regions. The industry employs around 16.5 million people, making it one of Indonesia's largest job creators.