In the Villages, Palm Oil Is Not The Only Sectors Developing the Economy

In the Villages, Palm Oil Is Not The Only Sectors Developing the Economy

InfoSAWIT, JAKARTA - For all these years it is known that if one family spends more money to buy products (non-food) in a month, it would describe the economy in the family.

From the assumption, it is revealed that only 3 of 10 provinces that spend money to buy non-food products more than the average nationally in the same period. They are Riau, East Kalimantan, and Jambi where palm oil plantations are vast nationally. But the facts showed that high consumption of non-food product in many villages in the three provinces were not dominated by the villages where palm oil plantations developed.

In Riau, for instance, there are 829 villages (44%) of 1.875 villages in the province. It means that the non-food product consumption which is more than the average consumption nationally is from other commodities (±64%).

Though palm oil is the main commodity in Riau, there are two other plantations developed in the province, such as, coconut and rubber. Referring to Central Bureau of Statistic (CBS), Riau Province, rubber and coconut produced almost 400 tons in 2018.

The same things happen in East Kalimantan and Jambi. Referring to potential data of the village, CBS, East Kalimantan Province showed that the villages where palm oil plantations were developed reached 229 (27%) of 841 villages in total; Jambi itself had 319 (23%) of 1.399 villages in total.

The other main commodities developing in East Kalimantan are rubber and coconut within the production capacity reaching 65 thousand tons and 13 thousand tons in 2017.(T2)

For more, please read InfoSAWIT, August 2020. Please check

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