JAKARTA – The operations of oil palm plantations and mills are seen able to create new centers of economic growth in regions as the palm oil has become the top commodity in supporting the regional economies.
The Palm Oil Agribusiness Strategic Policy Institute’s (PASPI) Executive Director Tungkot Sipayung said that a research conducted recently by PASPI had proven that the development of oil palm plantations and its processing industries are directly proportional to the increase of public income, especially those living around the plantations.
Data from PASPI Indonesia shows that there are 10 provinces that have developed into new centers of growth along with the development of the palm oil industries in the regions.
The ten provinces are Aceh, North Sumatra, Riau, South Sumatra, Jambi, Central Kalimantan, East Kalimantan, South Kalimantan, West Sulawesi, Papua and West Papua.
“Regencies with oil palm plantations will grow faster compared to other regencies having no oil palm plantations. This is based on empirical research which has resulted in the same conclusion with the research conducted by the World Bank,” said Tungkot.
Besides boosting the economy, the existence of the oil palm plantations has also brought positive impacts socially and ecologically in the respective regions.
One of the references quoted by PASPI Indonesia is the research conducted by Robert Henson, an expert on eco-physiology from Oklahoma City, the USA. Henson’s research in Malaysia was published with the title of “The Rough Guide to Climate Change”.
The research finds that the absorption of carbon dioxide (CO2) and oxygen production of oil palm plantations are better than forests.
The oil palm plantations are able to absorb CO2 around 163 tons/ha/year. With a total acreage of oil palm plantations in Indonesia at 16.381 million hectares, then the oil palm plantations can absorb CO2 up to 2.67 billion tons/year.
The oil palm plantations also provide land and water conservation in the form of natural bio-pore and root system.
In addition to that, the oil palm plantations also produce various kinds of derivative products that are eco-friendly and renewable energy, such as biodiesel, bio-premium, bioplastic, and biogas.
Of the total oil palm acreage in Indonesia, around 3.38 percent or 553,952 hectares are located in eastern Indonesia, namely in the islands of Sulawesi, Maluku and Papua. Papua alone has a total oil palm plantations at around 58,656 hectares, while West Papua at 110,496 hectares.
In West Papua, the oil palm plantations are located in the regencies of Manokwari, Sorong, Sorong Selatan, Maybrat, Teluk Bintuni and Fak Fak, while in Papua they are located in regencies of Nabire, Jayapura, Keerom, Boven Digoel, Mappi and Merauke.
Other findings
Further development of oil palm plantations in eastern Indonesia should be pursued to eradicate poverty, generate economic growth, and create multiplier effect. Currently, the poverty eradication program has been implemented through the program of replanting the smallholders’ plantations.
During the period of 2020-2022 the government has targeted a replanting of 540,000 hectares in 21 provinces, which involves around 43,000 growers.
Tungkot stated that the increase of crude palm oil (CPO) production has brought a very significant impact to the gross regional domestic product of a number of regions which have oil palm plantations, and the smallholders’ income.
PASPI noted in its 2017 report that the income of oil palm farmers was relatively stable and even inclined to rise along with the growth of their oil palm plantations and is relatively secured until reaching the period of replanting.
Source: Liputan6.com
