PALMOILMAGAZINE, BERAU — Amid the dominance of the mining sector, Berau Regency is undergoing a notable economic transformation, with the palm oil plantation industry emerging as a key player. In 2024, plantations contributed 7.66% to the region’s Gross Regional Domestic Product (GRDP), forming a significant part of the agricultural sector’s total 13% contribution.
Berau’s Plantation Agency Head, Lita Handini, attributed this growth to a surge in both production and palm oil commodity prices, which have performed strongly on national and global markets.
“The increase in production and commodity prices has had a direct impact on tax revenue and profit sharing, which has helped lift the GRDP,” Lita said, as quoted by Palmoilmagazine.com via Mediakaltim, Friday (18/7/2025).
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While mining still dominates Berau’s economic structure—contributing nearly 60% of total GRDP—Lita is optimistic that palm oil plantations could serve as a long-term economic counterbalance.
“Plantations are more sustainable and labor-intensive. They have the potential to become the foundation of our future economy,” she added.
Environmental concerns, however, remain a key issue. Lita acknowledged that palm oil expansion is often linked to ecological degradation. Nevertheless, she emphasized that the environmental impact of plantations is generally easier to mitigate compared to extractive sectors like mining.
“With palm oil, vegetation can recover within two to three years. It’s much quicker,” she explained.
She also highlighted the ecological benefits of palm oil, especially in water management. The fibrous roots of oil palm trees absorb water effectively, helping reduce flood risks and maintain groundwater balance.
“Palm trees have high water absorption. Once the land is covered, rainwater can soak into the soil without causing surface flooding,” she noted.
The Plantation Agency also stressed the importance of protecting High Conservation Value (HCV) areas. Natural forest zones and habitats for endangered wildlife must be safeguarded from plantation expansion.
“If the area has high conservation value, it must be preserved. It could be home to rare species that we need to protect,” Lita affirmed.
Of the 35 licensed plantation companies in Berau, 26 are currently in active operation. Many have committed to immediate replanting after land clearing as part of a sustainable practice to accelerate vegetation recovery.
This indicates a growing adoption of sustainability principles in field operations. Still, Lita emphasized that economic growth must not come at the expense of the environment.
“We can utilize natural resources, but our responsibility to the environment must remain intact,” she concluded. (P2)
