InfoSAWIT, JAKARTA -The economic crisis in 1998 became part of palm oil plantations nationally. The exchange rate of Rupiah decreaed to US Dollar so the economy got worse nationally and many businesses collapsed because of the currency.
Though some businesses nationally went to bankrupt because of the decreasing exchange rate of Rupiah toward Dollar, some other businesses got better, namely the businesses that operated in product commodity, including palm oil plantation in many regions in Indonesia.
One year later in 1999/2000 the decreasing exchange rate of rupiah, palm oil business got bigger because the crude palm oil (CPO) production was sold to the global in US Dollar. If it is in Rupiah, it means, the numbers would be more to get.
As the result, the selling of CPO was expensive and palm oil plantations got profits from the increasing business. As a description, the economic crisis in some regions could stand if the palm oil plantation developed.
As time goes, CPO and its derivative products became famous to the global world, including in Indonesia. The CPO and derivative markets developed more until 2006/2007. The CPO selling price hit the top as same as the bank decreased its interest. The result was, the palm oil plantation nationally developed fast.
Based on General Directorate of Plantation, Ministry of Agriculture, palm oil plantations reached about 14,031 million hectares in 2017. They are in Sumatera, Java, Kalimantan, Sulawesi, Maluku, and Papua.
The wide plantations were equal to the CPO production that reached 37,813 million tons. (Sunarso – Director of PT Pegadaian)
This article once published in InfoSAWIT May 2018