{"id":28201,"date":"2024-07-23T04:21:50","date_gmt":"2024-07-23T04:21:50","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=28201"},"modified":"2024-07-25T04:25:52","modified_gmt":"2024-07-25T04:25:52","slug":"exposing-real-contribution-of-palm-oil-in-global-economy","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2024\/07\/23\/exposing-real-contribution-of-palm-oil-in-global-economy\/","title":{"rendered":"Exposing Real Contribution of Palm Oil In Global Economy"},"content":{"rendered":"

JAKARTA \u2013 It was presumed that palm oil has no significant contribution to the global food sector. But data from a number of institutions shows that not only palm oil has significant contribution, but its contribution to the global food supply has been continually increasing.<\/p>\n

Based on data from USDA, in 2022 global production of palm oil rose from around 55 million tons in 2010 to 84,2 million tons in 2021. During the same period, the global export volume of palm oil also increased from around 40.5 million tons to 42 million tons.<\/p>\n

The major importers of palm oil products during 2010-2021 (Table-1) are India (18 percent), European Union (15 percent), China (15 percent), Africa (13 percent) and the USA (4 percent).<\/p>\n

In those importing countries, the palm oil is further processed into a variety of downstream products. The down-streaming activities create various economic benefits.<\/p>\n

The wider and deeper down-streaming of palm oil in those importing countries has created direct and indirect impacts to other economic sectors as a whole, which then creates induced consumption impact for the general public through direct and indirect consumption of palm oil.<\/p>\n

\"\"<\/p>\n

The study of European Economics in 2016 shows that there are at least 15 important sectors that are driven up along the palm oil downstreaming activities in those importing countries. Those sectors include foods, agriculture, hotels and restaurants, textile, construction, public administration and social security, trading, health, wood processing, chemical and chemical products, personal services, education, and pulp and papers.<\/p>\n

The study of Shigetomi et al. (2020) also confirms that many global economic sectors are involved along the global supply chain of palm oil. Those sectors are as follows:<\/p>\n

    \n
  1. Industries of foods, beverages and tobacco;<\/li>\n
  2. Industries of chemical and chemical products;<\/li>\n
  3. Industry of construction;<\/li>\n
  4. Industries of textile, clothing products and leather products;<\/li>\n
  5. Oil fuel-based industries;<\/li>\n
  6. Public health and social services.<\/li>\n<\/ol>\n

    The study also reveals that the economic benefits of palm oil are not only enjoyed by importing countries, but also by the global communities involving in the supply chain of products based on palm oil or using the palm oil. Households in many countries are heavily dependent on the consumption of finished products based on palm oil or hidden palm oil, \u00a0such as food products and non-food products (biofuel, cosmetics and toiletries), which are internationally traded.<\/p>\n

    The combination of direct and indirect impacts, and induced consumption impact of the importing activities of palm oil and palm oil downstreaming in those importing countries contribute to the increase of value added and Gross Domestic Product (GDP) at global level. The study of European Economics (2016) concludes that the income generation from palm oil downstreaming enjoyed by those importing countries in 2013\/2014 reached US$32.8 billion.<\/p>\n

    The income generating activities of importing and down-streaming of palm oil varies among the importing countries (photo 7). European Union enjoys the most of income generation at 18.7 percent. Then followed by China (17 percent), India (16.7 percent), Africa (13.5 percent), Pakistan and Bangladesh (10.1 percent), USA (7.3 percent), and other countries (17 percent).<\/p>\n

    \"\"<\/p>\n

    All those facts have proven the very important role of palm oil in the global economy. Besides its contribution to the producing countries of palm oil, through the imports and downstreaming in importing countries and supply chain of palm oil products, the palm oil also creates income generation at global market for both consumers and non-consumers of palm oil. (*)<\/p>\n

    Source: Mitos & Fakta Kelapa Sawit \u2013 4th<\/sup> Edition \/ <\/em>gapki.id<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    JAKARTA \u2013 It was presumed that palm oil has no significant contribution to the global food sector. But data from a number of institutions shows that not only palm oil has significant contribution, but its contribution to the global food supply has been continually increasing.<\/p>\n","protected":false},"author":1,"featured_media":26846,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"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":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3711,3708,3709],"tags":[],"class_list":["post-28201","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-myths-facts","category-publication","category-recent-news"],"yoast_head":"\nExposing Real Contribution of Palm Oil In Global Economy - Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI)<\/title>\n<meta name=\"description\" content=\"It was presumed that palm oil has no significant contribution to the global food sector. 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The country\u2019s palm oil exports were valued at US$22.97 billion last year, in comparison to US$20.22 billion in 2019, according to\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/11\/indiaclimatedialogue.net_palmoil_fruit.jpg?fit=680%2C390&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/11\/indiaclimatedialogue.net_palmoil_fruit.jpg?fit=680%2C390&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/11\/indiaclimatedialogue.net_palmoil_fruit.jpg?fit=680%2C390&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":21164,"url":"https:\/\/gapki.id\/en\/news\/2022\/02\/12\/only-few-industries-like-palm-oil-in-special-characteristics\/","url_meta":{"origin":28201,"position":1},"title":"Only Few Industries Like Palm Oil In Special Characteristics","author":"admin","date":"February 12, 2022","format":false,"excerpt":"JAKARTA \u2013 The palm oil industry in Indonesia has been growing for more than 110 years. Currently, Indonesia is the world\u2019s largest producer, exporter and consumer of the palm oil. Every year, Indonesia produces around 45 million tons of palm oil from its total acreage of oil palm plantations at\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/11\/industry_palmoil_palmoillabour.network.jpg?fit=984%2C542&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/11\/industry_palmoil_palmoillabour.network.jpg?fit=984%2C542&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/11\/industry_palmoil_palmoillabour.network.jpg?fit=984%2C542&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/11\/industry_palmoil_palmoillabour.network.jpg?fit=984%2C542&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":32002,"url":"https:\/\/gapki.id\/en\/news\/2026\/09\/13\/palm-oil-could-meet-60-global-veg-oil-demand-by-2050\/","url_meta":{"origin":28201,"position":2},"title":"Palm Oil Could Meet 60% Global Veg-Oil Demand By 2050","author":"admin","date":"September 13, 2026","format":false,"excerpt":"JAKARTA -\u00a0Palm oil is projected to meet approximately 60 percent of global vegetable oil demand by 2050, positioning Indonesia to play a strategic role in fulfilling this need. Tungkot Sipayung, Founder and Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (Paspi), stated that global demand for vegetable oils\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/09\/2050_60_palmoil_oilpalm__gapki.id__.jpg?fit=817%2C450&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/09\/2050_60_palmoil_oilpalm__gapki.id__.jpg?fit=817%2C450&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/09\/2050_60_palmoil_oilpalm__gapki.id__.jpg?fit=817%2C450&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/09\/2050_60_palmoil_oilpalm__gapki.id__.jpg?fit=817%2C450&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":20109,"url":"https:\/\/gapki.id\/en\/news\/2021\/05\/02\/palm-oil-developed-by-prioritizing-balance-of-triple-aspects\/","url_meta":{"origin":28201,"position":3},"title":"Palm Oil Developed By Prioritizing Balance Of Triple Aspects","author":"admin","date":"May 2, 2021","format":false,"excerpt":"JAKARTA \u2013 The plantation commodities have become the major contributor to Indonesia\u2019s foreign exchange income, with total exports in 2018 reaching US$28.1 billion or around Rp393.4 trillion. It is expected that the plantations\u2019 contribution to the national economy will increase and further strengthen the development of the whole plantation sub-sector.\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/03\/eradicate_palmoil_foodbev.com_.jpg?fit=1058%2C591&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/03\/eradicate_palmoil_foodbev.com_.jpg?fit=1058%2C591&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/03\/eradicate_palmoil_foodbev.com_.jpg?fit=1058%2C591&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/03\/eradicate_palmoil_foodbev.com_.jpg?fit=1058%2C591&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/03\/eradicate_palmoil_foodbev.com_.jpg?fit=1058%2C591&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":29815,"url":"https:\/\/gapki.id\/en\/news\/2025\/06\/14\/oil-palm-magic-plant-that-produces-magic-vegetable-oil\/","url_meta":{"origin":28201,"position":4},"title":"Oil Palm: Magic Plant That Produces Magic Vegetable Oil","author":"admin","date":"June 14, 2025","format":false,"excerpt":"Oil palm is often dubbed as \u201cmagic plant\u201d due to its outstanding benefits to human beings. As a gift from Almighty God, oil palm does not only produce vegetable oil, but it has brought a big positive impact to global community. Among the 17 kinds of oil crops in the\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/01\/cpo_palmoil_sawit_themalaysianreserve.com_.jpg?fit=1024%2C603&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/01\/cpo_palmoil_sawit_themalaysianreserve.com_.jpg?fit=1024%2C603&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/01\/cpo_palmoil_sawit_themalaysianreserve.com_.jpg?fit=1024%2C603&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/01\/cpo_palmoil_sawit_themalaysianreserve.com_.jpg?fit=1024%2C603&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":22329,"url":"https:\/\/gapki.id\/en\/news\/2022\/11\/17\/palm-oil-industry-greatly-contributes-to-climate-change-control\/","url_meta":{"origin":28201,"position":5},"title":"Palm Oil Industry Greatly Contributes To Climate Change Control","author":"admin","date":"November 17, 2022","format":false,"excerpt":"JAKARTA \u2013 The palm oil industry from upstream to downstream has apparently given great contribution to the efforts of controlling climate change. The Indonesia\u2019s oil palm plantation cover of 16.38 million hectares absorbs 2.2 billion tons of carbon dioxide (CO2) every year. Economic Coordinating Ministry\u2019s Deputy in charge of Foods\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/12\/joko_tofan_borneo_f.jpg?fit=771%2C480&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/12\/joko_tofan_borneo_f.jpg?fit=771%2C480&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/12\/joko_tofan_borneo_f.jpg?fit=771%2C480&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2021\/12\/joko_tofan_borneo_f.jpg?fit=771%2C480&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/11\/palmoil_oilpalm_palmoil.jpg?fit=858%2C495&ssl=1","_links":{"self":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/28201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/comments?post=28201"}],"version-history":[{"count":1,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/28201\/revisions"}],"predecessor-version":[{"id":28202,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/28201\/revisions\/28202"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media\/26846"}],"wp:attachment":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media?parent=28201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/categories?post=28201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/tags?post=28201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}