Palm Oil Industry Becomes A Peak Eye Of 20.8 Million Indonesians

Palm oil (Photo: Antara)

JAKARTA - Director General of Agro Industry at the Ministry of Industry (Kemenperin) Putu Juli Ardika said, there are 20.8 million Indonesians who depend on their livelihoods in the palm oil industry.

"This ( palm oil) industry is recorded as a livelihood for around 4.2 million people and supports around 20.8 million Indonesians," Putu said in a written statement as quoted from the Ministry of Industry's official website, Monday, June 24.

Putu added, this industry is also able to contribute to the country's foreign exchange of around IDR 450 trillion per year, especially from exports of downstream products of high value.

"The economic value of the upstream-downstream oil palm sector itself reaches more than IDR 750 trillion per year. This is equivalent to 3.5 percent of the 2023 National Gross Domestic Product (GDP) which reached IDR 20.892 trillion," he said.

Therefore, the Ministry of Industry is consistent in efforts to develop the national palm oil industry. There are several efforts that have been made by the Ministry of Industry to advance the industry.

These efforts include setting the downstream policy of the palm oil industry as a national priority as stated in Presidential Regulation Number 74 of 2022 concerning National Industrial Policy 2020-2024. This is in accordance with the direction of President Joko Widodo (Jokowi).

There are two important milestones in downstreaming the palm oil industry. First, the restructuring of the duty rate came out progressively in 2011. Meanwhile, the second is a combination of fiscal policy for the collection of plantation funds (Levy) managed by BPDPKS with the Mandatory Biodiesel policy which has so far reached a composition of 35 percent (B35).

"In the second milestone, the growth of the downstream oil palm industry has become more accelerated and directed in terms of managing supply demand to maintain the selling price of fresh fruit bunches at the remuneration level for people farmers," said Putu.

Furthermore, said Putu, the Ministry of Industry has also succeeded in normalizing the management of the export distribution of cooking oil (RBD Palm Olein) during the end of 2021 until 2022 outbreak.

"The Ministry of Industry has operated the Bulk Cooking Oil Information System (SIMIRAH) as a supply control platform and cooking oil prices along with their raw materials in the national scope and supports decision making in real time, responsive, transparent and massively based on community participation," he said.

Meanwhile, the Ministry of Industry is currently preparing the Palm Oil Roadmap (Roadmap) for Indonesia Gold 2045. It is hoped that by 2045 the sustainable upstream to downstream palm oil (sustainable) industry will be achieved and in line with the independent, sovereign, advanced, just and inclusive industrial sector growth ultimate goals.

"The keyword is the development of a sustainable (sustainable) industrial sector and able to be traced (traceable) as a prerequisite for the acceptance of downstream palm oil products in the global market," he concluded.