Palm Oil Industries Highly Secure In Pandemic

Palm Oil Industries Highly Secure In Pandemic

PalmOilMagazine - Covid-19 pandemic significantly minimize the economy in Indonesia. Based on Central Bureau of Statistic (CBS), until the third quarter of 2020, gross domestic product (GDP) in Indonesia was negative 3,49% compared to the same period in 2019.

But agricultural sectors positively increased 2,15% compared to other sectors. Palm oil became one positive contributor to GDP in agriculture in the period.

Palm oil could massively contribute as the source of exchange. It was in the first rank as the exchange provider from agricultural sectors. Still referring to CBS data, palm oil exports from Indonesia reachedd 25,28 million tons or about Rp 195,39 billion.

The export value increased 11,5% compared to the same period in 2019. From the export volume, more than 56% were exported in the form of downstream products, such as, refined, oleo-chemical, lauric, biodiesel, and others.

In his speech in Hari Sawit Nasional, Minister of Agriculture, Syahrul Yasin Limpo read by General Director of Plantation, Ministry of Agriculture, Kasdi Subagyono said that palm oil development nationally in the future would not be only about people’s productivity but also the stock guarantee of superior, qualified, certified seeds and maintain the quantity, quality and continuity.

“This is our homework about confirming Indonesian Sustainable Palm Oil (ISPO) standards that the world keeps watching to fulfill the sustainable and environmental aspects,” Syahrul noted.

Besides, it needs certain action in the pandemic situation about to increase the market access, additional values, supply chain, distribution, and the dynamic of the price in the world. Syahrul hoped that palm oil in Indonesia should develop sustainably and environmentally from the sub upstream to sub downstream system, namely about realizing sustainable development goals (SDGs)

It is decided that palm oil plantations in Indonesia cover 16,3 million hectares within average production about 3 - 4 tons per hectare/year. This makes palm oil the most efficient commodity to plant of other kinds of vegetable oil, such as, sunflower oil, soybean oil, rapeseed oil, and others.

Syahrul also noted, the government keeps facilitating to increase the production and productivity by advantaging the fund from Palm Oil Plantation Fund Management Agency (PFMA) through the smallholders’ replanting program (SRP) for the old trees, having small productivity, and time to be replanted.

In 2020 to 2022 SRP would cover 540 thousand hectares in 21 provinces. Most of them are in Sumatera and Kalimantan where they are the centers.

Syahrul continued that palm oil potentials should be taken for advantages as optimal as it could to accelerate the exports as the program planned until 2024 called gerakan tiga kali lipat ekspor (Gratieks). “Every effort and power from Ministry of Agriculture and stakeholders should focus to Gratieks,” he said.

Chairman of Indonesian Palm Oil Board (IPOB), Derom Bangun told that palm oil industries highly contribute to the country. In 2019, the industries gave exchange about US$ 20,5 billion. Bangun even predicted that in Covid-19 pandemic, palm oil export value would not be much different from the previous year. (T2)

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