Antara News·Indonesia·Friday, November 6, 2026 at 10:41 AM UTC

Indonesia expands Plantation Fund Agency mandate to cocoa, coconut

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Bayu Saputra, Yashinta Difa

..national economic resilience must ultimately translate into greater farmer welfare,

Jakarta (ANTARA) - The Indonesian government has officially expanded the mandate of the Plantation Fund Management Agency (BPDP) beyond palm oil to include cocoa and coconut, aiming to strengthen plantation governance and improve the welfare of smallholder farmers nationwide.

Speaking at the International Conference and Expo on Palm Oil and Others 2026 in Jakarta on Thursday (November 5), Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo said the expansion was based on Presidential Regulation Number 132 of 2024.

“Strengthening the plantation sector remains focused on delivering tangible benefits to public welfare, ensuring that it remains relevant amid global economic dynamics and ongoing economic transformation,” Dradjad said.

Under the expanded mandate, government support will cover plantation rejuvenation, human resource development, infrastructure provision, institutional strengthening, and technical assistance for cocoa and coconut farmers.

“The message we wish to convey is that national economic resilience must ultimately translate into greater farmer welfare,” he added.

Alongside financial support, the government is also strengthening commodity governance.

Export transparency for strategic natural resources has been improved through Danantara Sumberdaya Indonesia (DSI) under Government Regulation Number 24 of 2026, which took effect on June 1.

The measure is intended to optimize state revenue and curb under-invoicing and transfer pricing.

On the environmental front, the government is upgrading the Indonesian Sustainable Palm Oil (ISPO) certification system through digital traceability tools while seeking greater international acceptance of the certification.

To increase domestic value addition, the government is also advancing industrial downstreaming, including preparations for the mandatory B50 biodiesel policy, scheduled to take effect in July 2026. It is also seeking to improve productivity and strengthen post-harvest infrastructure for cocoa and coconut.

These measures include improving post-harvest processing, integrating digital technologies into supply chains, and expanding domestic and international market access for processed and value-added products.

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