- New President Prabowo Subianto has made critical appointments to his cabinet that show a palm-positive agenda
- This includes the appointment of former Ambassador to Germany Arif Havas Oegroseno as Deputy Minister of Foreign Affairs and Rachmat Pambudy as Minister of Planning
- Havas has in particular been highly critical of the EU’s approach to palm oil
Indonesia’s new President Prabowo Subianto has demonstrated his administration’s commitment to strengthening the country’s palm oil industry with a number of critical cabinet appointments.
The appointment of Arif Havas Oegroseno as Deputy Minister of Foreign Affairs is particularly significant. Havas, previously serving as Indonesia’s Ambassador to Germany, has been a prominent defender of Indonesian palm oil interests in international forums, particularly in criticising the European Union’s Deforestation Regulation (EUDR).
He has previously held little back in his criticism of both Brussels and its policies, and advocated for the palm sector’s interests across Europe.
In a recent opinion piece for the Jakarta Post, Havas wrote that the EUDR has “seven deadly traits” and is “fundamentally discriminatory,” and has described an “anti-palm oil ideology” in Europe.
In addition, Rachmat Pambudy has been appointed as the Minister of National Development Planning and Head of Bappenas. Bappenas is a critical agency in the implementation of development assistance projects in Indonesia, and particularly for cooperation with foreign aid agencies. Pambudy has significant level of experience and expertise, previously serving as Commissioner at PT Nusantara Sawit Sejahtera (NSS) Tbk, one of Indonesia’s leading palm oil producers, and as a leading academic at Bogor Agricultural University.
Critically, he has also had a leadership role in the Indonesian Farmers Harmony Association (HKTI) since 2015. HKTI leadership has previously been critical of the EUDR. Professor Rachmat, like Deputy Minister Havas, will be a critical part of the President’s international agricultural agenda going forward.
The two appointments come at a crucial time when the sector employs more workers than ever before.
Recent data reveals the remarkable scale of Indonesia’s palm oil industry employment. According to the Indonesia Palm Oil Strategic Studies (IPOSS), the sector employs approximately 18 million workers throughout its value chain, from upstream to downstream operations. This workforce significantly surpasses the Netherlands’ population of 17 million and is double that of Switzerland’s 8.7 million inhabitants.
This number is likely to increase over the next five years as the President places a greater emphasis on downstreaming in Indonesia’s commodity industries.