International Journal on Advanced Science, Engineering and Information Technology, Vol. 8 (2018) No. 2, DOI:10.18517/ijaseit.8.2.4148

Palm Oil Plantation Revitalization Model for The Agroindustry Development

Juliza Hidayati, S Sukardi, Ani Suryani, Anas Miftah Fauzi, S Sugiharto

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 largest 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,  in addition, there is not any special fund for the plantation. For that reason , it is necessary to make an improvement  effort  for the revitalization of  the palm oil plantation in North Sumatera-Indonesian through the big 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 very low,  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 revitalization are among others the land availability and the replanting, the increased productivity of plantation and CPO agroindustry, and the plantation financing. Therefore, it is 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 increase in the revitalization is maximized.

Keywords:

Plantation revitalization, palm oil, the land availability, plantation productivity, plantation financing.

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