Jakarta – Vice President K.H. Ma’ruf Amin underlined the importance of palm oil industry for Indonesian economy as it contributes significantly to its state income and provides a third of the world’s need of vegetable oils.
In 2022, the palm oil industry managed to earn a foreign exchange of US$39.28 billion or Rp600.98 trillion (Rp15,300 per US dollar) from its exports. The palm oil industry’s contribution to the national economy is projected to continue rising as the global demand for palm oil products will keep growing. Its global demand for oleo-foods alone is projected to grow to US$106.16 billion in 2035.
The palm oil industry also employs 16.2 million workers, directly and indirectly, in its upstream and downstream sectors. “Considering its important role, the palm oil industry should be continually developed with the principles of sustainability,” the Vice President said.
He said that the palm oil industry can be further developed through the involvement of all stakeholders, including member companies of the Indonesian Palm Oil Association (GAPKI) and all related ministries and government institutions.
He also pointed out 6 strategic steps that should be implemented by all palm oil industry players in Indonesia.
“First, palm oil companies need to strengthen partnerships with the smallholders, especially in implementing the replanting program for smallholders,” he said in a written statement on Sunday 05 March 2023.
According to him, the scheme of partnerships based on mutual benefits, and sustainability should be continually pursued. “We shouldn’t only increase the productivity of growers, but also the smallholders’ income and welfare as well,” he said.
Second, the need of smallholders for assistance and guidance in realizing the certification of Indonesian Sustainable Palm Oil (ISPO) for their palm plantations. The certification is needed to create viable and sustainable business of palm oil, economically, socially and environmentally.
Third, GAPKI and palm oil companies should optimize the implementations of their corporate social responsibility (CSR) programs for the people living around their plantations, especially in preserving the environment, and improving the public health, education and welfare.
“Fourth, GAPKI member companies should help develop remote areas, by preserving the local environment. Many regions have developed in Sumatra, Kalimantan, and Sulawesi due to the development of palm oil economy,” he said.
Fifth, The palm oil companies should increase the empowerment of local people living around the oil palm plantations. For example, GAPKI can collaborate with Pondok Pesantren (Islamic Boarding School) to create what he calls “santripreneur” in the palm oil industry.
“There are about 34,000 pondok pesantren in Indonesia with the number of santri (religious students) at around 4.76 million people. Around 44.2% of the pesantren schools have various economic potentials, ranging from cooperatives, small and medium businesses, sharia-based economy, agri-business, plantations, farms, and to various kinds of vocations,” he said.
Sixth, the related ministries and government institutions should expedite the harmonization of regulations, especially on the legal status of plantations in forest areas and the implementation of the replanting program, which is still below target. (*)
Source: finance.detik.com
