PALMOILMAGAZINE, JAKARTA – The efforts of the North Luwu Regency Government to boost regional economic growth have yielded tangible results. North Luwu Regent Andi Abdullah Rahim has secured support from the Ministry of Agriculture (MoA) for the development of an integrated palm oil plantation and processing complex—including CPO and cooking oil plants—covering 10,000 hectares in the region.
The agreement was reached following Regent Andi Rahim’s meeting with the Minister of Agriculture in Jakarta. In a follow-up discussion held at the Ministry’s office on Monday (November 3, 2025), the Regent met with Director General of Plantations Dr. Abdul Roni Angkat, Director of Palm Co PTPN Irwan Perangin, and Head of PSR and Plasma Division at PTPN 4 Abdul Muthalib to discuss the investment details.
Regent Andi Rahim stated that the North Luwu government had proposed a 10,000-hectare palm oil plantation project and received immediate approval from the Directorate General of Plantations. “Alhamdulillah, our proposal will soon be followed up by the Director General,” he said, as quoted by beige-heron-208544.hostingersite.com from KBRN RRI.
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He further explained that the palm oil development will be carried out in collaboration with PT Perkebunan Nusantara (PTPN). As a follow-up, a coordination meeting between PTPN and the North Luwu local government will soon take place, involving relevant stakeholders. “God willing, next week PTPN will come to North Luwu to hold a coordination meeting with the local government and other stakeholders,” said Andi Rahim.
While the total development area covers 10,000 hectares, the initial phase will begin with 3,000 hectares developed under the nucleus-plasma partnership model. “For the first phase, around 3,000 hectares will be developed through the nucleus-plasma scheme,” he explained.
The nucleus-plasma model is a partnership system between companies and smallholders, where the company acts as a developer and mentor, as well as a financial guarantor (avalis) for smallholders seeking loans from financial institutions. The company also provides technical support and guarantees market access for smallholder products.
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Through this model, smallholders retain ownership and manage their farms independently, while receiving continuous guidance from the company. The primary goal of the nucleus-plasma system is to create mutually beneficial cooperation between companies and smallholders while enhancing local community welfare.
This strategic initiative is expected to generate significant economic impacts for North Luwu, including increased regional income, job creation, and enhanced investment opportunities in the palm oil downstream sector. (P3)
