InfoSAWIT, JAKARTA – Of all plantation commodities, palm oil is the ‘primadona’ in Indonesia that gives massive contribution to the economy, local development, people’s welfare, environment conservation, and the most important thing is to the increasing quality of life.
In 2018, Indonesia had palm oil plantations reaching about 14,32 million hectares. Riau, North Sumatera, and West Kalimantan are the provinces having the widest plantations. About 59% of the total palm oil plantations in Indonesia belong to the (big) private companies and the country while the rests belong to the people.
In the macro economy, palm oil industries play the strategic roles. According to ministry of agriculture in 2018, the palm oil sector was the biggest exchange provider reaching Rp 247 billion. It is potential to develop the sovereign of energy, people’s economy, and employment. It hired about 4,2 million men and 12 million indirect workers.
In the regional economic development, palm oil industries play the strategic roles in the remote areas to be the new one and trigger the economy in the villages. The increasing crude palm oil (CPO) production increases the economy significantly in the palm oil plantation centers. The industries are the strategic ones to conquer the poverty.
As the agrarian country within the second biggest gross domestic product (GDP) provider after the processing industries, reaching 13,26% in 2018, the agriculture sectors have the industries that could be as the leverage in the acceleration of sustainable development goals (SDGs) achievement. The agriculture sectors are important because half of the GDP of the processing industrial sectors are in agriculture-base. Besides, the agriculture sectors hire many workers reaching about 35% of the total workers. (Asrita /Faculty of Agriculture, Universitas Tanjungpura)
For more, please read InfoSAWIT, June 2020