Palm Oil Industries Would Decrease the Poverty in Indonesia

Palm Oil Industries Would Decrease the Poverty in Indonesia

PalmOilMagazine JAKARTA - General Directorate of Plantation Ministry of Agriculture admitted that palm oil sectors play the roles to reduce the numbers of poverty and increase the smallholders’ welfare. Besides, palm oil contributes to fulfill food in the domestic and the world.

Researches of Palm Oil Agribusiness Strategic Policy Institute (PASPI) revealed that palm oil plantations could develop the remote, poor, abandoned regions to be new economic centers. They are in many places starting from Aceh, North Sumatera, Riau, South Sumatera, Jambi, Central Kalimantan, East Kalimantan, South Kalimantan, Sulawesi, Papua, and West Papua.

“Palm oil helps the world in realizing Sustainable Development Goals (SDG) in poverty alleviation,” Executive Director of PASPI, Dr. Tungkot Sipayung said.

He mentioned it in a webinar discussion of Forum Wartawan Pertanian (FORWATAN) within the theme "Peranan Kelapa Sawit dalam Pengentasan Kemiskinan dan Mewujudkan Gratieks”, Wednesday (31/3/2021), which PalmOilMagazine joined.

Sipayung also told that three ways in palm industries help the world poverty, such as, the production in the plantations, the downstream in the importer countries, and the third is the consumption.

After HPH (Hak Pengusahaan Hutan ) came to an end, ghost or dead cities raise because there is no activity. As the impact, the local people get poorer. “The people’s palm oil plantations paly the roles – to restore the former areas of HPH to b productive and environmental. Besides, the economy starts getting better because of palm oil,” Sipayung said.

From the economic perspective, the transaction among the people in the plantations and economy in the villages and cities takes place. The transaction in the plantations and the urban people reached Rp 202,1 billion/year and the transaction of the people in the plantation and the economy reached Rp 59,8 billion/year.

Palm oil development in each region contributes to reduce poverty. This is also taking place in Malaysia, Thailand, and Papua New Guinea. “Where there is palm oil plantation, the poverty would be decreasing because of men work there and the new economic centers raise,” he said.

And the other countries do too. There would be employment in the downstream industries in the importer countries. It would give kinds of work to 2,73 million men in the importer countries. The income generating could be Rp 38 billion to downstream industries.

“As the exporter country, we could escalate the productivity of palm oil and so could the importer ones. There would be kinds of work to do. India, China, and European Union have the same. European Union may pretend to reject palm oil. If they say no to palm oil, there would be no chance to get work, and the income would be decreasing,” Sipayung mentioned.

Forestry observer, Bedjo Santoso told that palm oil industries could give employment to 16,2 million men within detail, 4,2 million men direct workers and 12 million men in indirect workers. The exchange from palm oil sector in 2018 reached 240 billion rupiah. It could be the cantilever of economy nationally.

“I do not agree with palm oil moratorium (President’s Instruction No.8 / 2018). There is not clear goal from the regulation and puts palm oil to the lower level as the cantilever of economy nationally,” he said.

He also thought that palm oil (namely the people’s) could be developed by developing sustainable palm oil forest ecosystem in local wisdom – base. “The policies about palm oil plantations published by the government which are contra productive to poverty alleviation should be reviewed to be adjusted to prior interests nationally,” he said.

Director of Fresh and Annual Plantation General Directorate of Plantation Ministry of Agriculture, Heru Tri Widarto told that the plantations in Indonesia laid on about 16,38 million hectares. Of the numbers, the people’s plantations laid on about 6,72 million hectares. While the potential to smallholders’ replanting program (SRP) would be 2,78 million hectares and mostly be in Sumatera and Kalimantan.

“The targets of SRP in 2020-2022 would be 180 thousand hectares in every year. It would be held in 21 provinces and 108 district/city,” Heru told.

In a whole, his side targeted that the exports of the main, mainstay and plantation development in 2020-2024 should be US$ 74,31 billion or equal to 1.040,33 billion rupiah.

To realize the target, General Directorate of Plantation encouraged to develop logistics of seeds, increase production and productivity, escalate the added values, and exports in holistic.

“We also encourage to do modern farming, get fund through KUR (kredit usaha rakyat), increase human resource capacity, optimize the stakeholders’ network,” he said.

General Directorate of Plantation also targeted that in 2020-2024 the plantation production would increase 7 percent per year, the employment increases 5 percent, gross domestic products increase 5 percent per year and decrease losses to percent. (T2)

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