Jakarta – The finance ministry said that palm oil is the strategic commodity in the Indonesian economy, especially during the outbreak of Covid-19 pandemic. Almost unaffected by the pandemic, the palm oil industry has become the largest contributor to the Indonesian economy, while other sectors seeing downturn.
The Oil Palm Plantation Fund Management Board (BPDPKS) President Director Eddy Abdurrahman said recently that the palm oil industry had significantly contributed tax income to the state during 2020. “The palm oil industry contributes tax payment around Rp14 – 20 trillion per year. It has proven that the palm oil is very important for our economy,” Eddy said during a hearing with the house of representatives’ (DPR) Commission IV last week.
He said that currently the palm oil production reached an average of 37.5 million metric tons per year. It also contributes an export value of around US$21.4 billion per year, or around 14.9 percent from the total of Indonesia’s non-oil-gas exports.
Eddy pointed out that due to its good performance, the palm oil sector has also provided tens of millions of jobs and ensured the welfare of smallholders and industrial workers amid the rampant layoffs in other industries. “Based on available data, the palm oil companies directly employ a total of 4.2 million workers, and indirectly a total of 12 million workers. On the smallholding plantations, there are 2.4 million smallholders with a total of 4.6 million workers,” said Eddy. (*)
Source: kumparan.com | Featured image via ensia.com