InfoSAWIT, JAKARTA – Ministry of Industry decided to get palm oil downstream industries done within the goals, such as, to escalate the added values of the commodity which in the end, to welfare the people. The strategic target would be realized in palm oil processing which now develops in this country.
In the report of Ministry of Industry, palm oil processing industries absorbed direct workers not less than 5,2 million men and be the sources of income for more than 20 million men in the supply chain. In 2021, palm oil exports reached 40,31 million tons within about US$ 35,79 billion of income or increased 56,63% from 2020 exports.
“Palm oil processing industries develop more, including in Dumai, Riau Province. They significantly contributed for the economy regionally,” General Director of Agro Industry Ministry of Industry, Putu July Ardika said, as in the official statement to InfoSAWIT, Wednesday (13/7) in Jakarta.
In the work visit of Commission VII Indonesian Legislators to Kawasan Industri Dumai, last Monday, Puto mentioned, the processing industries dominated the roles to increase the economy in Riau reaching 28,08 percent in 2021. The gross regional domestic product (GRDP) in Riau Province was the second biggest in Sumatera and the sixth biggest one nationally.
“It means, GRDP in Riau still based on manufacturer sector. In specific in Dumai City, processing industries contributed more than 60 percent,” Putu said.
In 2021, the economy in Riau escalated 3,36 percent or higher than it in 2020 which decreased 1,13% because of Covid-19 pandemic.
He also told, palm oil processing industries created the center of economic progress namely out of Java, such as, Sumatera, Kalimantan, and eastern regions of Indonesia. Besides they mobilized productive activity in palm oil plantation sectors, namely in the outermost, left-behind, and remote areas.
“The multiplier – effect from palm oil processing industries increased agglomeration or new industrial zones in palm oil – base, such as, in Dumai (Riau), in Sei Mangkei and Kuala Tanjung (North Sumatera), Tarjun (East Kalimantan), and Bitung (North Sulawesi),” he said. (T2)