Petrus Tjandra Urges Smallholder Palm Oil Farmers to Own Processing Units Beyond Selling FFB

Agro Investama Group President Director, Petrus Tjandra, emphasized that it is high time the palm oil industry supply chain favors smallholder farmers. According to him, farmers have long been in a vulnerable position, restricted solely to upstream raw material suppliers without enjoying the downstream economic added value.

He conveyed this on the sidelines of the 2nd National Smallholder Plantation Conference in Jakarta. Petrus highlighted that true agricultural growth demands a shift in perspective: smallholder farmers must no longer simply sell fresh fruit bunches (FFB), but must be encouraged to own independent processing units.

During the event, he also noted that the biggest barrier to realizing this inclusion is usually rooted in limited access to capital and a lack of independent processing infrastructure.

To address this challenge, Agro Investama Group is taking proactive steps by facilitating funding solutions and building full upstream-to-downstream integration. Through this initiative, growers are expected to process and market their palm oil products directly, allowing them to enjoy profit margins that have long been out of reach.

As a tangible form of commitment to technical assistance, the company is also partnering with the National Research and Innovation Agency (BRIN) to provide intensive coaching. This collaborative program is planned to be implemented soon through pilot projects in Lampung and Banten. Targeted support for grower cooperatives and independent farmers is believed to be the key to transforming the immense potential of smallholder plantations into an independent economic force.

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