PALMOILMAGAZINE, BANDA ACEH — The Aceh government is inviting global corporations to invest in the downstream palm oil sector, particularly in establishing processing facilities (refineries) that are not yet available in the province known as the “Land of Rencong.”
“We encourage global companies to purchase Aceh’s palm oil and begin investing in downstream processing plants here,” said Aceh Deputy Governor Fadhlullah during the launch of the Sustainable Palm Oil Partnership Working Group, hosted by the Sustainable Trade Initiative (IDH) in Banda Aceh on Wednesday (Aug 13).
The forum brought together major players in the palm oil industry, including Unilever, PepsiCo, Nestlé, Mars, Mondelēz, Musim Mas, Apical, Permata Hijau Group, and Sinar Mas. Representatives from the Netherlands, Denmark, Norway, and several other countries also attended.
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Fadhlullah expressed optimism that the forum would strengthen business confidence in Aceh as a hub for green investment. He stressed the importance of collaboration between local government and industry to realize a vision of sustainable palm oil.
To meet global market demand for deforestation-free and inclusive palm oil, Aceh has prepared two key policy frameworks:
- The Aceh Sustainable Palm Oil Roadmap 2023–2045, established under Governor Regulation No. 9/2024.
- The Aceh Regional Action Plan for Sustainable Palm Oil 2023–2026, under Governor Regulation No. 17/2024.
“We want to show the world that Aceh’s palm oil comes from legal plantations, is high quality, and free from deforestation,” he emphasized.
Currently, Aceh is home to 63 palm oil mills (PKS) with an annual production capacity of over one million tons of crude palm oil (CPO) from approximately 470,000 hectares—equivalent to around 2.41% of Indonesia’s national output. However, the province still lacks downstream industries that could provide significant added value to local communities and businesses.
Fadhlullah called on international investors to establish refineries in Aceh for products such as cooking oil, margarine, cosmetics, and other palm oil derivatives. “We hope this meeting can lead to the establishment of a sustainable refinery in Aceh,” he said.
To support investment, the Aceh government has committed to improving infrastructure. The province currently has one international airport, 10 domestic airports, five international fishing ports, five domestic ports, and power plants fueled by gas, water, and steam. Construction is underway on a toll road linking Banda Aceh to North Sumatra, along with a planned tunnel project connecting Gunung Paro-Kulu and Geurutee to enhance access across Aceh’s southwest region. (P2)
