InfoSAWIT, JAKARTA - In the recent day, President Joko Widodo confirmed to displace the capital of Indonesia to Kalimantan Island within simple reason, which is, to develop the economy and infrastructures better.
Many people argued about the displacement of the capital in Kalimantan but for palm oil sector, it is the good news to develop the strategic commodity nationally. Until now its development is still blocked by un-available infrastructures in the island.
The palm oil productions from Kalimantan, namely East Kalimantan province are the third rank after Central Kalimantan and West Kalimantan.
Data from General Directorate of Plantation, Ministry of Agriculture revealed that in 2018 the total palm oil production in East Kalimantan reached 2,4 million tons within the productive plantations reaching 784 thousand hectares.
The productive plantations cultivated by the people laid about 198 thousand hectares within the production reaching 613 thousand tons. The numbers could be more because the local people are fond of planting palm oil. As the result, the partnership between the independent smallholders and the palm oil plantation companies starts running.
But besides hoping to develop the economy and commodity plantations, there are lots to do and solve. Kalimantan Island still faces environmental issues besides one island that produces plantations, forestry, and mining.
The forests in Kalimantan are the homes for orangutans, leopards, and elephants. The forests are some of big ecosystems and conservation in the world. But in the last decade, the third big island in the world which is divided by Indonesia, Malaysia, and Brunei Darrusalam might have lost some forests because of the fire, illegal logging, palm oil plantations, and pulp and paper expansions.
But the recent study published by scientific journal, WILEY – Conservation Letters revealed that the researchers of CIFOR found that palm oil plantations in Kalimantan both in Indonesia and Malaysia decreased to develop since 2012.
Then what would the effect be of capital displacement to commodity development and investment in Kalimantan? To know more, dear readers could read in InfoSAWIT, September 2019.