RI Fulfills 22 Percent Demand For World Vegetable Oil

Illustration (Photo: Doc Antara)

Director of Planning and Fund Management of the Directorate General of Treasury of the Palm Oil Fund Management and Plantation Agency (Dirjen BPDPKS) of the Ministry of Finance (Kemenkeu) Kabul Wijayanto said that Indonesia had met the world's vegetable oil demand of up to 22 percent.

"Indonesia plays an important role, because the demand for world vegetable oil is 300.7 million tons in 2040, while Indonesia has fulfilled 22 percent of vegetable oil for the world today," he said as quoted by ANTARA, Friday, August 2.

He explained that palm oil contributes to the economic growth in Indonesia as the largest palm oil producer in the world.

It was recorded that palm oil exports in 2023 reached 50.07 million tons, a total of 28.45 billion US dollars.

This is equivalent to contributing 12 percent of exports as a strategic commodity in Indonesia.

"About 70 percent of the products of palm oil are exported and only 10 percent are processed raw," he said.

This result was also followed by the area of oil palm which also increased from 16.38 million hectares of palm oil to 16.8 million hectares after the land area was renewed, including in South Sulawesi, which is precisely located in North Luwu and East Luwu Regencies.

The increase in palm oil production in the first quarter of this year also reached 4.82 percent.

Positively, this increase was followed by a decrease in the Gini ratio from 0.37 to 0.33, which meant that there was a fair economic growth.

Meanwhile, regarding employment, there are 13.2 million workers through the palm oil sector.

Nevertheless, said Kobul, the palm oil sector has challenges from the social, economic and environmental aspects.

"It is hoped that the educational program for the environment related to palm oil will continue to be initiated in carrying out mitigation steps, so that disasters can be handled properly," he added.