Palm oil plantation revitalization model for the agroindustry development

Abstract

The increasing need for vegetable oil about 5 million a year accompanied by the human population growth with the average increase 0.9% requires a consistent effort for Indonesia as the top CPO producer in the world. The efforts to increase the palm oil plantation production faces not only the constraint of the low plantation product but also the lack of downstream palm oil industry development. Also, there is not any specific fund for the plantation. Because of that reason, it is necessary to make an improvement effort for the revitalization of the palm oil plantation in North Sumatera-Indonesian through the huge potential benefits of North Sumatera by modelling palm oil plantation revitalization, to facilitate the relevant parties to find the solution of the constraints of palm oil plantation revitalization so that it can support the CPO agroindustry development in North Sumatera. The implementation of palm oil plantation revitalization in North Sumatera is not high, that is only 17.5 % out of the planned one. It indicates that it becomes the constraint of the palm oil plantation revitalization in North Sumatera. The result of the research shows that several dominant factors influencing the success of the regeneration are among others the land availability and the replanting, the increased productivity of plantation and CPO agroindustry, and the plantation financing. Therefore, it is strongly recommended that the relevant parties such as government, plantation companies, banks and-and farming community be able to synergize so that various influencing factors can be optimized and the maximum increase in the revitalization.