{"id":30100,"date":"2025-08-04T20:57:57","date_gmt":"2025-08-04T13:57:57","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=30100"},"modified":"2025-08-05T21:02:52","modified_gmt":"2025-08-05T14:02:52","slug":"palm-oil-transforms-many-remote-areas-to-new-growth-centers","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2025\/08\/04\/palm-oil-transforms-many-remote-areas-to-new-growth-centers\/","title":{"rendered":"Palm Oil Transforms Many Remote Areas To New Growth Centers"},"content":{"rendered":"<p>Palm oil is often blamed to have caused environmental damage and contributed just small to regional economic development. But the latest facts show that it is otherwise.<!--more--><\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-30101\" src=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/08\/ilustrasi_thumbnail_50_wilayah_Indonesia_.webp?resize=1003%2C645&#038;ssl=1\" alt=\"\" width=\"1003\" height=\"645\" srcset=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/08\/ilustrasi_thumbnail_50_wilayah_Indonesia_.webp?w=1003&amp;ssl=1 1003w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/08\/ilustrasi_thumbnail_50_wilayah_Indonesia_.webp?resize=300%2C193&amp;ssl=1 300w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/08\/ilustrasi_thumbnail_50_wilayah_Indonesia_.webp?resize=768%2C494&amp;ssl=1 768w\" sizes=\"auto, (max-width: 1003px) 100vw, 1003px\" \/><\/p>\n<p>The palm oil has been proven to have generated the growth of local economies, especially those in the least developed areas. Usually developed in remote areas, the oil palm plantations have opened the villagers\u2019 access to better infrastructure, raised the income of farmers, and pushed up the gross regional domestic product (PDRB) significantly.<\/p>\n<p>Based on the research conducted by the Palm Oil Agribusiness Strategic Policy Institute (PASPI 2023), there had been at least 50 least developed areas that had been transformed into new centers of economic growth based on the oil palm plantations.<\/p>\n<p>The oil palm plantations were initially developed in remote, isolated, and marginalized areas. But then the existence of oil palm plantations, palm oil mills, guaranteed market for palm fresh fruit bunches (FFB), and the increase of smallholders\u2019 productivity had gradually transformed the areas into a new magnet that attracted other business players to take advantage of doing other supportive businesses and developing infrastructure and facilities.<\/p>\n<p>The results?<\/p>\n<ul>\n<li>Road and market access opened<\/li>\n<li>Mobility of local economy increased<\/li>\n<li>The rise of new businesses as related or supporting businesses<\/li>\n<\/ul>\n<p>Data in 2021 shows:<\/p>\n<ul>\n<li>Income of oil palm farmers reached around Rp30 million per year<\/li>\n<li>Income of non-oil palm farmers lagged far behind that of oil palm farmers<\/li>\n<\/ul>\n<p>The income of oil palm smallholders is derived from regular sale of FFB, which is purchased by the palm oil mills every month, securing cash flow for the smallholders, which is rare in other agricultural sub-sectors.<\/p>\n<p>The economic activities generated by the oil palm plantations have pushed up the growth of gross regional domestic product significantly. Data collected from the palm producing areas shows the following facts:<\/p>\n<p>-Palm producing regencies saw higher and faster PDRB growth compared to other areas.<\/p>\n<p>-Compared to non-palm oil producing areas, the trend of economic growth in the palm producing areas show a consistent acceleration.<\/p>\n<p>It has proven that palm oil is not just an agricultural commodity, but the driver of local economic growth.<\/p>\n<p><strong>50 isolated areas transformed into new growth centers<\/strong><\/p>\n<p>Areas that were used to be isolated but now had been transformed into new centers of economic growth include:<\/p>\n<ol>\n<li>Nagan Raya, Aceh Singkil<\/li>\n<li>Pasaman Barat, Sijunjung<\/li>\n<li>Stabat, Belarang (North Sumatra)<\/li>\n<li>Bengkulu Selatan, Mukomuko<\/li>\n<li>Sungai Lilin, Tugumulyo<\/li>\n<li>Sarolangun, Sungai Bahar<\/li>\n<li>Sanggau, Bengkayang<\/li>\n<li>Sampit, Kuala Pembuang<\/li>\n<li>Batulicin, Kotabaru<\/li>\n<li>Samarinda, Kutai Timur<\/li>\n<li>Mamuju, Donggala<\/li>\n<li>Tenggarong, Sangatta<\/li>\n<li>Sorong, Manokwari, Papua Barat<\/li>\n<\/ol>\n<p>People in those areas have now had access of market and road infrastructure, and managed to raise their purchasing power to higher level than before when they were isolated from economic development. (*)<\/p>\n<hr \/>\n<p>PASPI (2023) \u2013 <em>Mitos Vs Fakta Industri Minyak Sawit Indonesia dalam Isu Sosial dan Ekonomi. <\/em>BPDPKS \u2013 Sawit Bangkitkan Daerah 2024. Data lapangan dan infografis resmi Sawit BDPKS<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Palm oil is often blamed to have caused environmental damage and contributed just small to regional economic development. But the latest facts show that it is otherwise.<\/p>\n","protected":false},"author":1,"featured_media":30101,"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":[3708,3709],"tags":[],"class_list":["post-30100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publication","category-recent-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - 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This May Shock You","author":"admin","date":"August 3, 2024","format":false,"excerpt":"JAKARTA \u2013 Many people are divided in their view regarding the existence of oil palm plantations in rural areas. To some, such existence has only worsened the condition of backwardness in the villages. But to others, it has really helped the countryside inhabitants to lift their living standard. Most of\u2026","rel":"","context":"In &quot;Myths &amp; Facts&quot;","block_context":{"text":"Myths &amp; Facts","link":"https:\/\/gapki.id\/en\/news\/category\/myths-facts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2017\/08\/kebun-kelapa-sawit-di-papua-gapki.jpg?fit=600%2C400&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2017\/08\/kebun-kelapa-sawit-di-papua-gapki.jpg?fit=600%2C400&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2017\/08\/kebun-kelapa-sawit-di-papua-gapki.jpg?fit=600%2C400&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":21693,"url":"https:\/\/gapki.id\/en\/news\/2022\/07\/20\/various-impacts-of-oil-palm-plantations-to-social-sustainability\/","url_meta":{"origin":30100,"position":1},"title":"Various Impacts of Oil Palm Plantations To Social Sustainability","author":"admin","date":"July 20, 2022","format":false,"excerpt":"JAKARTA - The social sustainability is one aspect of sustainability which is necessary to realize a balance and quality sustainability. It can be seen through the impacts of palm oil industries to the people living around. The Palm Oil Agribusiness Strategic Policy Institute (PASPI), an independent agricultural research and development\u2026","rel":"","context":"In &quot;Publication&quot;","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\/2022\/07\/palmoil_plantations_forest_staticflickr.com_.jpg?fit=1006%2C544&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/07\/palmoil_plantations_forest_staticflickr.com_.jpg?fit=1006%2C544&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/07\/palmoil_plantations_forest_staticflickr.com_.jpg?fit=1006%2C544&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/07\/palmoil_plantations_forest_staticflickr.com_.jpg?fit=1006%2C544&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":29025,"url":"https:\/\/gapki.id\/en\/news\/2024\/12\/08\/oil-palm-and-degraded-lands-are-they-linked\/","url_meta":{"origin":30100,"position":2},"title":"Oil Palm And Degraded Lands: Are They Linked?","author":"admin","date":"December 8, 2024","format":false,"excerpt":"JAKARTA \u2013 There are groups of people who stated that oil palm plantations in Indonesia have resulted in further degradation of lands ecologically, economically and socially. But those people need to read the following facts and description before deciding to keep such opinion. Most of oil palm plantation areas in\u2026","rel":"","context":"In &quot;Myths &amp; Facts&quot;","block_context":{"text":"Myths &amp; Facts","link":"https:\/\/gapki.id\/en\/news\/category\/myths-facts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/ilustrasi_harmoni_sawit_2_id.jpg?fit=788%2C432&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/ilustrasi_harmoni_sawit_2_id.jpg?fit=788%2C432&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/ilustrasi_harmoni_sawit_2_id.jpg?fit=788%2C432&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/12\/ilustrasi_harmoni_sawit_2_id.jpg?fit=788%2C432&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":19366,"url":"https:\/\/gapki.id\/en\/news\/2020\/11\/08\/thanks-to-oil-palm-indonesias-remote-areas-developing\/","url_meta":{"origin":30100,"position":3},"title":"Thanks To Oil Palm, Indonesia\u2019s Remote Areas Developing","author":"admin","date":"November 8, 2020","format":false,"excerpt":"Jakarta - The palm oil commodity is the largest contributor of foreign exchange to Indonesia. It has become the mainstay in absorbing workers and generating economic growth. The Indonesian Palm Oil Association (GAPKI) Communication Division Head \u00a0Tofan Mahdi said that due to the palm oil industry the remote areas in\u2026","rel":"","context":"In &quot;Info &amp; Activity&quot;","block_context":{"text":"Info &amp; Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/11\/palmoil_miro.medium.com_.jpg?fit=900%2C487&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/11\/palmoil_miro.medium.com_.jpg?fit=900%2C487&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/11\/palmoil_miro.medium.com_.jpg?fit=900%2C487&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/11\/palmoil_miro.medium.com_.jpg?fit=900%2C487&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":28242,"url":"https:\/\/gapki.id\/en\/news\/2024\/08\/01\/palm-oil-has-no-contribution-to-regions-heres-real-fact\/","url_meta":{"origin":30100,"position":4},"title":"Palm Oil Has No Contribution To Regions? Here\u2019s Real Fact","author":"admin","date":"August 1, 2024","format":false,"excerpt":"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\u2026","rel":"","context":"In &quot;Publication&quot;","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\/04\/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\/2021\/04\/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\/2021\/04\/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\/2021\/04\/cpo_palmoil_sawit_themalaysianreserve.com_.jpg?fit=1024%2C603&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":21761,"url":"https:\/\/gapki.id\/en\/news\/2022\/07\/28\/economist-palm-black-campaign-just-business-competition\/","url_meta":{"origin":30100,"position":5},"title":"Economist: Palm Black Campaign Just Business Competition","author":"admin","date":"July 28, 2022","format":false,"excerpt":"JAKARTA - The black campaign against the palm oil is believed to have been merely aimed to win business competition. Global producers of other vegetable oils could not compete with the palm oil which is very efficient and cheap in price, so that they turned to non-tariff barriers, such as\u2026","rel":"","context":"In &quot;Publication&quot;","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\/2022\/08\/palmoil_bbci.co_.uk_.jpg?fit=970%2C517&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/08\/palmoil_bbci.co_.uk_.jpg?fit=970%2C517&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/08\/palmoil_bbci.co_.uk_.jpg?fit=970%2C517&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/08\/palmoil_bbci.co_.uk_.jpg?fit=970%2C517&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\/2025\/08\/ilustrasi_thumbnail_50_wilayah_Indonesia_.webp?fit=1003%2C645&ssl=1","_links":{"self":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/30100","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=30100"}],"version-history":[{"count":1,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/30100\/revisions"}],"predecessor-version":[{"id":30102,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/30100\/revisions\/30102"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media\/30101"}],"wp:attachment":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media?parent=30100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/categories?post=30100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/tags?post=30100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}