Does Palm Oil Increase The People’s Economy?

Does Palm Oil Increase The People’s Economy?

InfoSAWIT, JAKARTA – It is admitted or not, palm oil develops fast. From hundreds hectares to be dozen million of hectare. Palm oil is developed not only in Indonesia but also in Malaysia.

Unfortunately palm oil always develops together with the negative issues, such as, forest damages, and conflicts with the local people.

Vijesh Krishna of University of Goettingen, Germany, said, in 2003 to 2014, palm oil plantation developed 39% in the world.  “The stocks about 80% derived from Indonesia and Malaysia,” Vijesh Krishna said in World Plantation Conference and Exhibition (WPLACE) 2017, where InfoSAWITattended in Jakarta.

Palm oil plantation developed fast in 2000 to 2013 from 2 million hectares to be 7 million hectares. The smallholders cultivated about 40%. But does it influence the people’s economy?

Vijesh Krishna said, the research in Jambi showed that palm oil areas that were cultivated by the smallholders developed fast by saying that it did not needs lots of workers. “At least, half of the profits by cultivating palm oil was indirectly from saving and minimal workers,” he said.

He also mentioned, developing the people’s palm oil plantation depends on individual factors, such as, land ownership and workers.

The emergence of environmental policy should be more explicit to regulate, including about the consideration of social heterogenity. “The research still runs to know the result of the areal changing usage and the influence to the household workers,” he said. (T2)


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