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<\/a><\/p>\nThe Palm Oil Agribusiness Strategic Policy Institute (PASPI) Executive Director Tungkot Sipayung said that the study conducted by PASPI shows that 10 provinces have become new centers of economic growth after developing the palm oil industries. The 10 provinces are Aceh, North Sumatra, Riau, South Sumatra, Jambi, Central Kalimantan, East Kalimantan, South Kalimantan, West Sulawesi, Papua and West Papua.<\/p>\n
“The economies of regencies which have oil palm plantations have been growing faster than those without the oil palm plantations. This is an empirical research with the same result as the one conducted by the World Bank,” said Tungkot during a virtual discussion organized on Wednesday, 31 March 2021.<\/p>\n
Tungkot pointed out that the poverty rate in one region had declined in line with the increase of palm oil production in the region. Such condition also applies to other producing countries like Malaysia, Colombia, Papua New Guinea. “So, wherever the palm oil industry is developed, there poverty rate will decrease due to the absorption of local workers to the industry,\u201d he said.<\/p>\n
A research conducted by PASPI in 2019 has also shown further positive impact of the palm oil industry, which allows the palm oil industrial players to increase transactions with other economic sectors. The transaction value between the plantation communities and foods producers reached Rp36.8 trillion per year. With fishery communities, the transaction value reached Rp10 trillion, with husbandry communities at Rp13.1 trillion, with urban communities at Rp202.1 trillion and with rural communities at Rp59.8 trillion per year.<\/p>\n
He said that besides the positive impacts to domestic economy, the palm oil industry through international trade has also created a number of benefits to the importing countries, from the creation of job opportunities to the reduction of poverty rate.<\/p>\n
He said that the import of palm oil had also increased job opportunities in the palm oil importing countries since 2010. In 2010, the creation of job opportunities in eight palm oil importing countries reached 1.99 million, and then in 2020 the job opportunities rose to 2.73 million.<\/p>\n
According to him, the increase was resulted from the development of downstream palm oil industry in the importing countries. The downstream program in the importing countries has managed to increase workers\u2019 income by Rp38 trillion. (*)<\/p>\n
Source: Bisnis.com | Featured image via forestsnews.cifor.org<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"JAKARTA \u2013 The palm oil is seen able to create new centers of economic growth in regions which make the commodity production as their main economic base. The development of the oil palm plantations and palm oil industries will directly push up the local people\u2019s income.<\/p>\n","protected":false},"author":1,"featured_media":20073,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","footnotes":""},"categories":[3709,3715],"tags":[],"class_list":["post-20072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-recent-news","category-regulation"],"yoast_head":"\n
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