JAKARTA – Economic Coordinating Minister Airlangga Hartarto said that the Indonesian palm oil industry had played an important role in eradicating poverty, which is in line with the sustainable development goals set by the United Nations (UN) in 2015. Such contribution is mainly realized through employment of 16 million workers and its function as backbones of many local economies.
“Indonesian palm oil industry has significantly contributed to the national economic growth and to the efforts of eradicating poverty,” Minister Airlangga said when addressing a national webinar on the role of palm oil industry to the national economic development recently. The webinar was held by the Indonesian Journalists Association (PWI) in conjunction with the celebration of national press day.
Based on the government data as of December 2020, 4.2 million workers are directly employed in oil palm plantations owned by companies, 14.3 million workers are indirectly employed, and 4.6 million workers are employed in smallholding plantations owned by smallholders.
Minister Airlangga said that Indonesia as the world’s largest producer of palm oil with global market share of 55 percent is facing a number of challenges at the global market, which include negative campaigns to weaken the competitiveness of palm oil.
Contributing 3.5% of the national economic growth, the palm oil industry has become one of Indonesia’s national strategic industries and functions as the backbones of many local economies in the country. “Therefore, it should be supported, not only by the government, but also the general public,” he said.
He pointed out that palm oil is a continually buoyant commodity that has kept the industry growing positively amid the languishing condition of many other economic sectors as a result of the Covid-19 pandemic. The oil palm plantation companies can maintain their normal operations with strict discipline of health protocol implementation, so that the public welfare of the 16 million workers directly employed in the palm oil sector is kept secured during 2020.
He asserted that the government, through the oil palm plantation fund management board (BPDPKS), is committed to supporting the palm oil industry as one of the national strategic industries. “The Covid-19 pandemic won’t discourage the government to push up the performance of the palm oil industry,” he said.
Airlangga noted that the government will mainly realize its support through its replanting program, which targets the replanting of 180,000 Ha plantations owned by smallholders in 2021 with an allocation of fund at Rp5.567 trillion.
“To realize the target, BPDPKS and all of palm oil stakeholders will design a more effective and efficient mechanism to implement the replanting program,” he said. (*)
Source: Sindonews.com/wartaekonomi.co.id
