JAKARTA – You may share the view that even in generating regional economic growth, the palm oil industries have no contribution. Is it really a fact or just one of the myths concocted by certain groups around the palm oil?
Consider the regional development, especially those of rural areas, isolated areas, and frontier areas, as one of the main targets in Indonesia’s national development program. Driving up new investments to those areas stands as the key factor in generating economic development in those regions.
Developing oil palm plantations is actually a pivotal means of attracting new investments to the least developed areas across Indonesia. The development of oil palm plantations was expected to transform the regional backwaters into new growth centers.
The studies conducted by PASPI (2014) and Hariyanti et al. (2022) show that the growth of crude palm oil (CPO) production had significantly increased the gross regional domestic product (PDRB) in palm oil producing regions (photo 11). The growth of regional economies has been significantly pushed up by the production of palm oil. The increase of palm oil production has created a bigger positive impact to the local economies than to the local palm oil industries per se.
The study by PASPI (2022) shows that local economies of the palm oil producing regions grew higher and faster if compared to those of non-producing regions. The growth of PDRB of palm oil producing regions is starkly different with the non-producing regions of palm oil (photo 12).
The study of Kasryno (2015) reveals that the growth rate of PDRB of the palm oil producing provinces in Indonesia, such as North Sumatera, Riau, Jambi, South Sumatera, West Kalimantan, Central Kalimantan and East Kalimantan, is relatively higher compared to other provinces with less areas of oil palm plantations, such as Aceh, West Sumatera, Bengkulu, Lampung, South Kalimantan and Sulawesi. The expansion of oil palm plantations in many regions had significantly impacted the local economies as reflected by the higher growth of their PDRB (Bunyamin, 2008; Budidarsono et al., 2013; Apresian et al., 2020).
Those facts debunk the views that oil palm plantations have no contribution to the growth of local economies. Conversely, various facts show that the economic growth of palm oil producing regions is higher and more significant compared to other regions of non-producing ones. (*)
Source: Mitos & Fakta Kelapa Sawit – 4th Edition
