The Ministry of Agriculture’s plan to convert millions of hectares of rubber plantations into oil palm estates has drawn serious attention from various parties, including academics.
Lecturer at the Faculty of Agriculture, Universitas Gadjah Mada (Agriculture UGM), Dr. Eka Tarwaca Susila Putra, believes this policy carries significant risks, both technically and economically.
Economically, dependence on a single commodity is very vulnerable to global price fluctuations. In the challenging context of modern agriculture, a monoculture approach often becomes a weak point in maintaining production sustainability.
Therefore, a diversification strategy should be the foundation for formulating national policy directions.
“Monoculture oil palm cultivation in vast landscapes carries high risks, especially if there is a pest or disease outbreak,” Dr. Putra said on Thursday (Jul. 24).
From an agronomic perspective, this conversion is also considered irrational. Dr. Putra suggests revitalizing rubber plantations with replanting as a safer and more sustainable step.
He also emphasized the importance of implementing a mixed garden pattern as a solution to cope with price fluctuations.
Policies that merely pursue momentary price trends create a cycle of dependence that harms farmers.
With a mixed garden pattern, farmers have better adaptation space to market volatility.
“Converting commodities when their prices fall is not a wise choice because such situations have occurred repeatedly, and we always repeat the same mistakes,” Dr. Putra asserted.
Regarding the reason for conversion linked to the downstreaming strategy and energy resilience, Dr. Putra stated that the argument is irrelevant.
According to Dr. Putra, increasing CPO (Crude Palm Oil) production to support the biosolar program can be done without expanding oil palm areas.
He exemplified that if CPO productivity is increased from 3.5 tons to 7 tons per hectare, national production could double without needing land conversion.
He also questioned why it is not the primary rubber industry that is downstreamed to support price stability.
Optimizing yields from existing land demonstrates a smart and resource-efficient policy choice.
“Increasing productivity from existing oil palm plantations is more rational than opening new land, especially by replacing rubber,” Dr. Putra said.
Dr. Putra also warned that this step could damage the sustainability of the national rubber industry and Indonesia’s position in the global market.
If production declines drastically due to massive conversion, Indonesia risks losing the market share that has been built over time.
Sole dependence on oil palm is also considered dangerous because it makes the industry vulnerable to price fluctuations and climate change.
Losing position in global production statistics will also affect international buyers’ trust in our commodities.
This will narrow export opportunities and weaken Indonesia’s bargaining power in the global agricultural sector.
“If our rubber production drops drastically, Indonesia could lose its strategic position in the world market and risk becoming a net importer,” Dr. Putra explained.
At the farmer level, this conversion does not necessarily promise an increase in income.
Dr. Putra explained that oil palm is only profitable if the managed land is at least eight hectares, while small farmers, on average, have less than two hectares of land.
He said that the solution is not conversion, but land intensification through a mixed garden planting pattern.
This pattern enables farmers to earn income from multiple commodities while simultaneously mitigating risk when the price of one commodity declines.
In already complex rural economic situations, enforcing conversion policies risks adding burdens to small farmers.
“A more participatory approach based on field conditions is highly needed so that policies do not end up being counterproductive,” Dr. Putra advised.
From an environmental perspective, massive conversion is also considered dangerous.
Oil palm monoculture on a large scale risks degrading land resource quality and threatening biodiversity.
He advocates for a mixed garden approach as a more environmentally friendly solution, adapted to future agricultural challenges.
Additionally, diversification also opens opportunities for more resilient agricultural systems against the impacts of climate change.
This aligns with the principle of sustainable agriculture, which integrates ecological, social, and economic aspects in a balanced manner.
“Commodity diversification and integrated management are key to maintaining sustainability,” he revealed.
Furthermore, Dr. Putra highlighted the weakness in the policy formulation process.
He believes the land conversion policy has not comprehensively considered various aspects, especially from a long-term perspective.
He reminded that risks not carefully calculated could backfire in the future.
Strategic policy formulation should involve multi-sectoral participation and comprehensive, data-driven analysis.
“This policy appears to be born only from momentary considerations, without looking at the broad and sustainable impact on farmers, the environment, and the national economy,” Dr. Putra said.
As a solution, Dr. Putra offered four wise steps the government could take.
First, maintain existing rubber plantations with a revitalization program based on a mixed planting pattern.
Second, strengthen the primary rubber industry to stabilize prices when global prices fall.
Third, increase the productivity of existing oil palm plantations through on-farm intensification.
And fourth, direct the surplus CPO production from intensification results to support biosolar programs such as B35 to B100.
This strategy is considered more rational and balanced because it does not rely on expansion but rather on efficiency and innovation.
“With such a scheme, we do not need to sacrifice other commodities for oil palm, but can still achieve energy resilience,” Dr. Putra concluded.
Author: Triya Andriyani
Post-editor: Afifudin Baliya
Illustration: Freepik.com