JAKARTA – Contribution to a country’s gross domestic product (GDP) is one of key indicators that reflects the role of a commodity in the national economy. The higher the contribution, the bigger its role in the economy.
In Indonesia, palm oil has become one of its top commodities and significantly contributed to its GDP, which is a glaring fact but often ignored by certain people. Based on data from a number of reliable sources, the contribution of palm oil to Indonesia’s GDP has continually increased every year (Rifin, 2010; PASPI, 2014; Kasryno, 2015).
The palm oil’s contribution to GDP can be seen from the contribution of oil palm plantation and oil and fat industries. The input-output data (photo 9) shows that the growth of output value of Indonesia’s oil palm plantations increased relatively faster from Rp5 trillion in 2000 to Rp367 trillion in 2021. The oil and fat industries also saw an increase in its output value from Rp48 trillion to Rp752 trillion. The total output value of palm oil industries rose relatively faster from Rp54 trillion to Rp1,119 trillion, or an increase of more than 20 times during the same period.
The added value of palm oil industries during 2000- 2021 also increased (photo 10). The palm oil industry’s added value rose from Rp4 trillion to Rp270 trillion during the period. The oil and fat industries saw an increase of added value from Rp19 trillion to Rp240 trillion, raising the total added value of the industries from Rp23 trillion to Rp510 trillion.
Meanwhile, the share of palm oil industries to the total output and added value increased during 2000-2021. The share of palm oil industry to national output rose from 2.0 percent to 3.1 percent. So is its share to total national added value from 1.7 percent to 2.7 percent.
The above facts show that the palm oil industries contribute very significantly to the growth of Indonesia’s GDP. The growth of palm oil contribution to national GDP will further increase along with the intensive development of domestic palm oil down-streaming. (*)
Source: Mitos & Fakta Kelapa Sawit – 4th Edition
