{"id":30478,"date":"2025-10-10T12:12:16","date_gmt":"2025-10-10T05:12:16","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=30478"},"modified":"2025-10-14T12:17:46","modified_gmt":"2025-10-14T05:17:46","slug":"with-inclusive-growth-palm-oil-benefits-all-not-just-companies","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2025\/10\/10\/with-inclusive-growth-palm-oil-benefits-all-not-just-companies\/","title":{"rendered":"With Inclusive Growth Palm Oil Benefits All, Not Just Companies"},"content":{"rendered":"<p>Many people still assume that the economic growth generated by palm oil industries is only enjoyed by just a handful of large business players. However, the real facts of the industries show otherwise!<!--more--><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/gapki.id\/dir-site\/uploads\/2025\/10\/sawit_dari_desa_ke_kota_ekonomi_maju_karena_sawit_jpg.jpg?resize=1011%2C666&amp;ssl=1\" \/><\/p>\n<p>In Indonesia, the palm oil industries have been from the beginning functioning as a driving force of its national economy, creating inclusive economic benefits at the local, regional, national, and even global levels.<\/p>\n<p>Oil palm plantations are not only the source of income for large companies, but also create tangible economic impacts for the wider community, including:<\/p>\n<ul>\n<li>Oil palm smallholders,<\/li>\n<li>Rural MSMEs,<\/li>\n<li>Local communities,<\/li>\n<li>Even palm oil importing countries worldwide.<\/li>\n<\/ul>\n<p>Palm oil creates a multiplier effect that drives economic growth in various economic sectors such as trade, transportation, and services in rural areas.<\/p>\n<p>Data shows that palm oil producing villages see faster growth compared to those of non-palm oil producing villages. According to PASPI (2022), the average economic growth of palm oil villages increased significantly from 2016 to 2021, far surpassing that of non-palm oil villages.<\/p>\n<p>It means that the presence of oil palm plantations helps build new economic centers in rural areas, creating jobs, and increasing local incomes.<\/p>\n<p>Based on PASPI data (2023), the income of oil palm farmers continues to increase and is growing faster than those of non-oil palm farmers.<\/p>\n<p>In 2021, the average income of oil palm smallholders reached almost IDR 30 million per year, while non-oil palm farmers lagged far behind.<\/p>\n<p>This has shown that oil palm offers greater opportunities for farmers in rural areas of Indonesia to improve their welfare.<\/p>\n<h3><strong>Palm Oil Generates Economic Growth from local to global<\/strong><\/h3>\n<ol>\n<li>Village Level (Local):<\/li>\n<\/ol>\n<p>Oil palm plantations also generate the growth of micro, small and medium enterprises (MSMEs) in the trade, services, and transportation sectors.<\/p>\n<ol start=\"2\">\n<li>Regency Level (Regional):<\/li>\n<\/ol>\n<p>Oil palm centers have higher and faster growth of gross regional domestic product (GRDP) compared to the non-oil palm centers (PASPI, 2022).<\/p>\n<ol start=\"3\">\n<li>National Level:<\/li>\n<\/ol>\n<p>The palm oil industry is a significant contributor to Indonesia&#8217;s Gross Domestic Product (GDP).<\/p>\n<p>Output Aspect: The palm oil industry&#8217;s contribution increased from IDR 234 trillion (2000) to IDR 1,119 trillion (2021).<\/p>\n<p>Value Added Aspect: Its added value increased from IDR 172 trillion (2000) to IDR 510 trillion (2021).<\/p>\n<p>(Source: Input-Output Table BPS, processed by PASPI, 2023)<\/p>\n<ol start=\"4\">\n<li>Global Level:<\/li>\n<\/ol>\n<p>The economic benefits of palm oil extend beyond Indonesia. Importing countries such as India, China, the European Union, and Africa also generate significant revenue from palm oil imports and downstream processing.<\/p>\n<p>Total revenue for importing countries in 2013\/2014 reached US$ 32.8 billion.<\/p>\n<p>(Source: European Economics, 2016)<\/p>\n<p>The palm oil industries have been proven to make a significant contribution to inclusive economic growth, including:<\/p>\n<ul>\n<li>Improving the welfare of farmers and rural communities,<\/li>\n<li>Strengthening regional economies,<\/li>\n<li>Significant contributions to national GDP,<\/li>\n<li>And global economic benefits through international trade.<\/li>\n<\/ul>\n<p>In other words, palm oil is a driver of the people&#8217;s economy and a pillar of the global economy. (*)<\/p>\n<hr \/>\n<ul>\n<li><span style=\"font-size: 14px;\">PASPI (2022). <em>Economic Growth in Oil Palm Villages vs Non-Oil Palm Villages<\/em>.<\/span><\/li>\n<li><span style=\"font-size: 14px;\">PASPI (2023). <em>Oil Palm Farmers\u2019 Income Growth Data<\/em>.<\/span><\/li>\n<li><span style=\"font-size: 14px;\">Badan Pusat Statistik (BPS). <em>Input-Output Table Indonesia<\/em> (diolah oleh PASPI, 2023).<\/span><\/li>\n<li><span style=\"font-size: 14px;\">European Economics (2016). <em>Palm Oil Importing Countries\u2019 Income Report<\/em>.<\/span><\/li>\n<li><span style=\"font-size: 14px;\">BPDPKS (2024). <em>Palm Creates Inclusive Economic Benefits from Local to Global<\/em>.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Many people still assume that the economic growth generated by palm oil industries is only enjoyed by just a handful of large business players. However, the real facts of the industries show otherwise!<\/p>\n","protected":false},"author":1,"featured_media":30479,"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-30478","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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Let\u2019s Find Out","author":"admin","date":"July 20, 2024","format":false,"excerpt":"JAKARTA - The palm oil industry is an exclusive industry. Apparently, it is an accusation that has been very often leveled at the palm oil ever since the inception of the industry in 1980s. At that time, many economists opined that the palm oil industry will only benefit corporations. They\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\/2024\/04\/palmoil_sawitindonesia.com_.jpg?fit=690%2C407&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/04\/palmoil_sawitindonesia.com_.jpg?fit=690%2C407&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/04\/palmoil_sawitindonesia.com_.jpg?fit=690%2C407&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":28038,"url":"https:\/\/gapki.id\/en\/news\/2024\/06\/21\/gapki-asks-for-legal-certainty-to-grow-palm-oil-stronger\/","url_meta":{"origin":30478,"position":1},"title":"GAPKI Asks for Legal Certainty To Grow Palm Oil Stronger","author":"admin","date":"June 21, 2024","format":false,"excerpt":"JAKARTA \u2013 Palm oil is the most strategic commodity for Indonesia as the world\u2019s largest producer and exporter of palm oil. To maximize its benefits for generating national economic growth and improving public welfare, the Indonesian palm oil industries need legal clarity and certainty.\u00a0 \u201cThe palm oil industries need a\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\/2024\/06\/hadisugeng_sekjen_sawitkita.id_.jpg?fit=942%2C632&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/hadisugeng_sekjen_sawitkita.id_.jpg?fit=942%2C632&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/hadisugeng_sekjen_sawitkita.id_.jpg?fit=942%2C632&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/hadisugeng_sekjen_sawitkita.id_.jpg?fit=942%2C632&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":30448,"url":"https:\/\/gapki.id\/en\/news\/2025\/10\/03\/gapki-pushes-for-bigger-role-of-smes-in-palm-oil-industries\/","url_meta":{"origin":30478,"position":2},"title":"GAPKI Pushes For Bigger Role Of SMEs In Palm Oil Industries","author":"admin","date":"October 3, 2025","format":false,"excerpt":"YOGYAKARTA \u2013 The Indonesian Palm Oil Association (GAPKI) has called on the small and medium-sized enterprises (SMEs) to continue expanding their role in palm oil-related businesses in the country. GAPKI Chairman Eddy Martono made the request when virtually addressing the\u00a0 2nd Expouse 2025 event, which was organized by LPP Polytechnic\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\/2025\/10\/eddy_m_yogyakarta_KU_.jpg?fit=893%2C543&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/10\/eddy_m_yogyakarta_KU_.jpg?fit=893%2C543&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/10\/eddy_m_yogyakarta_KU_.jpg?fit=893%2C543&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/10\/eddy_m_yogyakarta_KU_.jpg?fit=893%2C543&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":29247,"url":"https:\/\/gapki.id\/en\/news\/2025\/01\/22\/ris-palm-oil-plays-strategic-role-in-realizing-uns-sdgs\/","url_meta":{"origin":30478,"position":3},"title":"RI\u2019s Palm Oil Plays Strategic Role In Realizing UN\u2019s SDGs","author":"admin","date":"January 22, 2025","format":false,"excerpt":"JAKARTA \u2013 The United Nations (UN) has formulated a global platform of development called Sustainable Development Goals (SDGs) for the 2015-2030 period, replacing the Millennium Development Goals (MDGs) implemented during period of 2000-2015. The SDGs have 17 goals (Figure 11) which can be categorized into three main pillars of development,\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\/01\/palmoil_oilpalm_deforestation_esgindonesia.com_.jpg?fit=845%2C469&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/01\/palmoil_oilpalm_deforestation_esgindonesia.com_.jpg?fit=845%2C469&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/01\/palmoil_oilpalm_deforestation_esgindonesia.com_.jpg?fit=845%2C469&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/01\/palmoil_oilpalm_deforestation_esgindonesia.com_.jpg?fit=845%2C469&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":29830,"url":"https:\/\/gapki.id\/en\/news\/2025\/06\/16\/palm-smallholders-big-contribution-but-often-forgotten\/","url_meta":{"origin":30478,"position":4},"title":"Palm Smallholders: Big Contribution But Often Forgotten","author":"admin","date":"June 16, 2025","format":false,"excerpt":"JAKARTA - Palm oil, which is scientifically known as Elaeis guineensis, has become one of the main contributors to Indonesian economy. It is not just important in the plantation sector, but it has brought big impacts to the national economy of Indonesia as a whole. Within the real sector, the\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\/2025\/06\/palmoil_sawit_smallholder_petani_AI.jpg?fit=601%2C357&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/06\/palmoil_sawit_smallholder_petani_AI.jpg?fit=601%2C357&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/06\/palmoil_sawit_smallholder_petani_AI.jpg?fit=601%2C357&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":30478,"position":5},"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 &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\/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":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/10\/Sawit_dari_desa_ke_kota_ekonomi_maju_karena_sawit_.webp?fit=1011%2C666&ssl=1","_links":{"self":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/30478","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=30478"}],"version-history":[{"count":3,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/30478\/revisions"}],"predecessor-version":[{"id":30482,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/30478\/revisions\/30482"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media\/30479"}],"wp:attachment":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media?parent=30478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/categories?post=30478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/tags?post=30478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}