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Government pushes for diversified agricultural investments away from palm oil

Government pushes for diversified agricultural investments away from palm oil

The government and industry observers are urging investors to expand beyond crude palm oil and into other agricultural commodities amid a combined investment pledge of Rp 313 trillion (US$22.20 billion) for the plantations sector. Agriculture Ministry plantations director general Kasdi Subagyono called on businesses to invest in the downstream segment of the palm oil industry rather than investing in crude palm oil as nearly three-fourths of the 514 investment pledge with a potential value of Rp 313 trillion go to the palm oil. “The requirements are simple. As long as the capital is present alongside a custodian bank, we can be open to investment,” he said on Sept. 19. Palm oil has generated significant foreign exchange revenue for Indonesia, contributing 1.5 percent to 2.5 percent to gross domestic product (GDP). Smallholder farms account for cultivating oil palm o…