InfoSAWIT, JAKARTA – Palm oil plantations contribute to increase the people’s economy. Of the total plantations in Indonesia, 40% of them are cultivated by the people and 17,5 million men work in palm oil plantations and the industries.
Palm oil plantations are about to develop more and the government has made and decided this commodity as the strategic one for it plays important role in the economy.
It could be seen from its width, more than 14 million hectares. As it is written above, 17,5 million men work in palm oil sector both on farm and the industries.
Ministry of Agriculture noted that palm oil plantation companies could hire 8,2 million men. They are from the surroundings, as the employees, and as the suppliers.
Unfortunately, of 40% of the people’s plantations, 2,5 million hectares should be replanted for the trees have pass the technical age reaching 25 – 30 years.
Since 2017, the government through Palm oil Plantation Fund Management Agency (PFMA) has launched the Smallholders’ Replanting Program within the goal, to increase the people’s plantation productivity, and also to improve the cultivation to be sustainable.
The larger people’s plantations are, the better needs of consumption would be fulfilled without new planting anymore. The replanting program is hoped to reduce the numbers of poverty. The research done by Stanford University in 2016 revealed that the poverty decreased in Indonesia from 0,41 to be 0,391. This influenced the Genie Ratio (Indonesia). One of it is from palm oil sector. (Writer: Anadilla Fahira/ Majoring Agribusiness, Faculty of Agriculture 2015, Universitas Padjadjaran)