PALMOILMAGAZINE, TANJUNG SELOR – Governor of North Kalimantan, DR (HC) H. Zainal A. Paliwang, M.Hum, expressed hope that the planned construction of a palm cooking oil industry would boost the economy in Indonesia’s 34th province. He shared this during a meeting on the feasibility study for the project.
Zainal stated that palm oil is set to become the main commodity plantation in North Kalimantan. In 2023, the plantations covered approximately 39,466.50 hectares, an increase of 1.36 percent from the previous year. Palm oil production reached 75,738 tons, with 91.51 percent of this being crude palm oil (CPO).
“The widest regency where palm oil develops in this province is Nunukan that laid on about 33.111,30 hectares and the total production reached 66.785,40 tons or about 88,18 percent of the total production,” Governor Zainal said, as Palmoilmagazine.com quoted from the official page of North Kalimantan Province, Thursday (1/8/2024).
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Agriculture, livestock, hunting, and agricultural services in regional gross domestic product in the province significantly contributed namely in palm oil sector. The governor also mentioned plantation commodity hired about 8.333 workers.
He continued the numbers and contribution would be escalated by palm oil industrial construction to escalate fresh fruit bunch price and would be the chance to construct other derivative industries.
“North Kalimantan Province target that palm oil would contribute to escalate the regional budge for about Rp 56.351.938.000 in 2024,” he said.
The governor mentioned North Kalimantan now has 20 palm oil mills but the numbers might not be enough to get palm oil plantation production.
“We do hope there would be more objective and comprehensive description about the technical, policy, financial, investment, marketing, economic, social, and cultural aspects. These would be the guidelines to get or publish decision about palm oil industrial development,” Zainal said. (P2)
