InfoSAWIT, JAKARTA – Palm oil industries in Indonesia played the strategic roles in the economy nationally and globally. By having more than 179 derivative products, the sectors would not limit to crude palm oil and palm kernel but also got to the derivative products, such as, cosmetics, tooth paste, cloth, fat, chocolate, fatty acid, surfactant, and biodiesel. Palm oil downstream sectors would be the keys to increase additional value and competition of palm oil products from Indonesia in many countries.
Analyst of Pusat Kebijakan Pendapatan Negara Badan Kebijakan Fiskal (PKPN BKF), Ministry of Finance, Nursidik Istiawan said, about 58% of CPO production in Indonesia is still exported with most of the numbers in the forms of derivative products. This showed the success of downstream industries that were implemented.
“Palm oil sectors support many other industries and contribute to increase the economic additional values,” he said, as InfoSAWIT quoted from the official page of Ministry of Finance, Tuesday (10/9/2024).
Palm oil significantly contributed in the revenue. In 2023, the industries contributed about Rp 88 trillion to the national budget. The numbers consisted of tax about Rp 50,2 trillion, non – tax revenue about Rp 32,4 trillion, and import duty about Rp 6,1 trillion. The government would support the tax by delivering tax allowance and free import duty as part to encourage downstream sectors to get developed.
With the production capacity in 2023 that could be reaching Rp 729 trillion nationally, palm oil sectors involved 2,4 million independent smallholders, created employments for 16 million workers. The development of the sectors also increased gross domestic product in plantation sector that positively increased 3,25% in the second quarter of 2024 and encourage gross domestic product nationally.
Meanwhile, Palm Oil Plantation Fund Management Agency (PO PFMA) also played significant roles to support sustainable palm oil development from the upstream to downstream sectors. Director of Fund Plan and Management PO PFMA, Kabul Wijayanto said that the institution would always support about biodiesel development research. “We would focus on the research to increase the additional values and get innovations in downstream products, namely in palm oil conversion to be biodiesel,” he said.
Besides, PO PFMA would be in cooperation with research institutions, universities to involve young generations to get research that supports smallholders’ plantation productivity. (T2)
