Palm Oil Industry Claims to Employ 17 Million Workers, Boosting Green Economy

JAKARTA - The palm oil industry confirms its commitment to promoting a green economy in Indonesia, in line with its contribution to economic growth, job creation, and environmental preservation.

Chairman of the Positive Campaign for the Indonesian Palm Oil Entrepreneurs Association (GAPKI), Edi Suhardi, revealed that this sector has absorbed up to 17 million workers, both directly and indirectly.

"In addition to economic benefits, the palm oil industry also has social impacts through the creation of 17 million jobs," he said in a written statement received by VOI, Friday, April 17.

According to Edi, the palm oil industry also provides a multiplier effect for the regional economy, including improving the welfare of farmers and MSMEs in the vicinity of the plantation area.

"If we talk about oil palm plantations, usually the location of oil palm is in a very isolated area. The company must build roads and infrastructure to open access to the plantation location. In addition, the palm oil company builds supporting facilities for the community," he said.

Not only that, this sector is considered to play an important role in the development of infrastructure in remote areas. Palm oil companies often build access roads to community support facilities around the operational area.

From the environmental side, Edi emphasized that the palm oil industry has adopted the principle of sustainability.

Palm oil plantations are said to have the ability as a carbon sink and are able to process waste into value-added products.

He added that the implementation of sustainability standards such as Indonesian Sustainable Palm Oil (ISPO) and the Roundtable on Sustainable Palm Oil (RSPO) is the key to maintaining competitiveness in the global market.

"The palm oil industry has established standards, principles, and sustainability criteria through the Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm Oil (ISPO). The palm oil industry must comply and obey sustainability standards," he explained.

In the future, industry players hope that synergy with the Plantation Fund Management Agency (BPDP) can be strengthened to increase productivity and the contribution of the palm oil sector to the national green economy.

"The palm oil industry has been given a boost by the government through ISPO and from the market through RSPO. We are committed to not deforesting," he said.