Samarinda, East Kalimantan, Indonesia — Palm oil sector is one of the highest 
growing industries in East Kalimantan province, Indonesia. Both central and 
local governments put a great emphasis on its development, while concurrently 
diminishing its adversity on the environment. 

“One Million Hectare of Palm Oil” program initiated by the previous East 
Kalimantan governor, Awang Faroek Ishak, has successfully grown the total area 
of palm oil throughout the province.

According to the Plantation Office of East Kalimantan, the total area of palm 
plantation currently reaches 1.19 million ha, with the production capacity of 
13.137 million tons of fresh fruit bunches (FFB) or equivalent to 2.890 tons of 
crude palm oil (CPO), processed in 78 palm oil processing facilities.

Head of the Plantation Office of East Kalimantan, Ujang Rachmad, conveyed that 
the government aims to add 20 more palm oil processing facilities with the 
total production around 885 tons of FFB per hour. 

“The facilities will be established in Kutai Kartanegara, East Kutai, Paser, 
North Penajam Paser, and Berau,” he revealed.

In the other occasion, Representative of Indonesian Palm Oil Association 
(GAPKI) of East Kalimantan, Azmal Ridwan, said that the abundant production of 
palm oil in East Kalimantan can help the province shift from coal and oil and 
gas economic orientation, transforming its economy.

“With the abundance of palm oil production, East Kalimantan can be a role model 
of a province not merely relying on the mineral or oil and gas resource,” he 
expounded.

In addition to palm oil sector, East Kalimantan also offers several agriculture 
potentials that have not yet been optimally explored, such as rubber, cocoa, 
cashew, and tea, to name a few. 

The member of East Kalimantan People's Representative Assembly, Ismail, stated 
that East Kalimantan is beyond coal and oil and gas; it offers so many things 
that earth produces. 

“East Kalimantan has whatever it takes the world needs. However, to explore it 
optimally, the local government needs to partner with the private sector who 
would invest significantly,” he remarked. 

SOURCE: Provincial Gorvernment of East Kalimantan, Republic of Indonesia