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BUILDING THE IMPORTANT ROLE OF HIGHER EDUCATION FOR THE EXCELLENCE AND SUSTAINABILITY OF INDONESIA'S PLANTATION INDUSTRY

Public Lecture of the Faculty of Agrotechnology Unpri By Prof. Dr. Ir. Bungaran Saragih, M.Ec.

Wednesday, April 2, 2014, the Minister of Agriculture of the Republic of Indonesia for the 2000-2004 term, Prof. Dr. Ir. Bungaran Saragih, M.Ec., said that in the latest developments in Indonesian palm oil agribusiness and the strategy for building sustainable palm oil agribusiness, the role of universities is needed in producing human resources (HR) with 3T capabilities (Technology, Talent, Tolerance).

He conveyed this in a public lecture to students of the Faculty of Agrotechnology, Prima Indonesia University (Unpri) with the theme 'Building the Important Role of Higher Education for the Excellence and Sustainability of the Indonesian Plantation Industry', in the Hall of the Royal Prima Hospital, Medan.

The public lecture was also attended by Unpri Advisor, dr. I Nyoman Ehrich Lister, M.Kes., AIFM, Head of Unpri Daily Executive Board (BPH), Dr. Tommy Leonard, S.H., M.Kn., Unpri Rector, Prof. dr. Djakobus Tarigan, AAI, DAAK, Dean of Unpri Faculty of Agrotechnology, Seno Aji, SPd, M.Eng., Prac., vice deans, lecturers and Unpri students.

Prof. Bungaran Saragih said that Indonesia is currently the world's largest producer of Crude Palm Oil (CPO), but this has not been done sustainably. Most of our CPO production still comes from plantation expansion, while the contribution from increased productivity is still relatively small.

Therefore, he said, Indonesia needs a new strategy in developing the palm oil agribusiness system in the future, including upstream, namely increasing the productivity of palm oil plantations as a whole as the main way to increase CPO production. Then downstream CPO, namely developing the CPO processing industry, so that it produces final products, such as biofuel, ethanol, oleo food, detergent and soap, shampoo, cosmetic products, pharmaceutical products, and others.

Prof. Bungaran said, to determine the success of upstream and downstream as well as the implementation of sustainable palm oil agribusiness system governance, is the existence of human resources that have 3T (Technology or Innovation, Talent or creative ability, and Tolerance, namely the diversity of human resource backgrounds including articulate attitudes towards various ideas).

According to him, the world of higher education such as Universitas Prima Indonesia is the right place to cultivate human resources who have 3T capabilities. "I hope Unpri will produce graduates who are 'Prima' in 3T and have creativity excellence, to produce leaps of more advanced changes in society", hoped Prof. Bungaran.

Meanwhile, the Dean of the Faculty of Agrotechnology Unpri, Seno Aji said, there are still many plantation industries in Indonesia that are not superior, even for opening plantation land by burning, even though after planting the production is very low.

"The burning of land has not finished, currently world stakeholders are demanding that the plantation industry must comply with the concept of sustainability. "Not yet superior, the problem of sustainability has emerged again. "Well, who will help them, if not us from universities", he said.

Therefore, in accordance with the theme of the general lecture, namely 'Building the Important Role of Higher Education for the Excellence and Sustainability of the Indonesian Plantation Industry', Unpri has an important role in helping the plantation industry in increasing its productivity excellence and sustainability, especially since universities have three main programs, namely the tridharma of higher education, teaching, research, and community service.

The Indonesian Palm Oil Agribusiness System Must Be Sustainable

Indonesia as the world's largest producer of crude palm oil (CPO) should be grateful, but this has not been sustainable. Moreover, land for oil palm plantations is currently increasingly limited, while productivity increases are still relatively small.

"Our CPO production to date is still mostly sourced from plantation expansion, while the contribution from increased productivity is still relatively small. Increasing CPO production from land expansion contains risks due to both climate change and the potential for agrarian conflict," said Prof. Bungaran Saragih.

In addition, the Chairman of the Advisory Board of the Palm Oil Agribusiness Strategic Policy Institute (PASPI) said that Indonesia's CPO dependence on the world market is also very high so that it is easy to manipulate the world market with various issues and policies of CPO importing countries, including the global anti-palm oil campaign.

"Therefore, Indonesia must move forward in a sustainable palm oil agribusiness system, namely how to maintain its position as the world's largest CPO producer while changing from the king of CPO to the king of downstream CPO products in the world. such as food oleo, chemical oleo, biodiesel, lubricants and surfactants sustainably," said Prof. Bungaran Saragih.

According to him, there are four main issues currently being faced by the palm oil agribusiness system that need to be considered, first, limited land for expanding palm oil plantations. Second, Indonesia's dependence on the world CPO market is still very high. Third, the added value of palm oil is still little enjoyed domestically. Fourth, the demands of the global market for environmental sustainability aspects and the intensification of the global anti-palm oil campaign.

"With these four main issues, Indonesia needs a new strategy in developing the palm oil agribusiness system in the future, namely by upstreaming palm oil agribusiness and downstreaming CPO," said Prof. Bungaran.

He said that the upstream strategy is to increase the productivity of palm oil plantations as a whole as the main way to increase CPO production with a fixed land area. This increase can be done by improving seed quality, fertilizer management and improving palm oil plantation management. Then with downstreaming, namely developing its own CPO processing industry, so that it can produce final products such as oleo food, oleo chemicals, biodiesel, lubricants, detergents, soaps, cosmetic products, pharmaceutical products, and others.

"Upstreaming and downstreaming must be carried out through the implementation of total quality management, the implementation of the principles of soil, water and ecosystem conservation, good corporate governance, and others as a sustainable palm oil agribusiness system (ISPO/RSPO). We must ensure that every product of the palm oil agribusiness system is produced sustainably in terms of economy, social and environment," he explained.

Prof. Bungaran said that the thing that determines the success of upstreaming, downstreaming and the implementation of sustainable palm oil agribusiness system governance is human resources (HR), starting from the level of policy makers (government), business actors, and researchers (scientists). "The quality of government human resources, entrepreneurs, and scientists greatly determines the competitive advantage of a nation, including the palm oil agribusiness system," he concluded.