Palm Oil Plays Significant Role In Reducing Global Poverty

Jakarta – Palm oil industry has played a very significant role in reducing the global poverty, especially in the global top five producers and exporters of palm oil, an international research institution reported recently.

Based on the World Bank’s report in 2020, there were around 17 percent of global poor people in the world’s top five producing countries, namely Indonesia, Malaysia, Thailand, Nigeria and Colombia. Thanks to the palm oil industry, the poverty rate in the five producing countries can be significantly reduced.

The Palm Oil Agribusiness Strategic Policy Institute (PASPI), a research institution specializing on palm oil research, reported recently that based on its research, the palm oil industry has played a very important role in reducing poverty rate, especially in the palm oil producing areas. “Every 10% growth of palm oil production reduces poverty by 7.7%,” PASPI said in its report.

The report also states that the oil palm plantations have created job opportunities and business opportunities, which have raised income and purchasing power of local people, especially the poor people in the villages.

PASPI said that in 2000 there were around 2.5 million of Indonesian families who each owns between 02 and 25 hectares of oil palm plantations. “The income of palm oil smallholders is also 05 to 10 times higher than other non-palm oil farmers.

Based on a study conducted in 2019 by Edwards, a researcher of PASPI, the decline rate of poverty in regencies and mayoralties that have oil palm plantations was faster than those other regencies/mayoralties which have no oil palm plantations.

PASPI concluded that the palm oil industry can reduce poverty rate in villages and cities, as has been envisioned by the United Nations (UN) through its 17 Sustainable Development Goals (SDGs) in 2015. “It has proven that the oil palm plantations have become one of the main drivers in reducing poverty in the palm oil producing countries,” PASPI reported.

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