InfoSAWIT, JAKARTA – The policy about palm oil downstream sectors that have been implemented as the instruction of President Joko Widodo successfully minimized economic dependence of Indonesia to the global scale – commodity price. The latest data showed the palm oil and its derivative exports in 2023 reached US$ 28,45 billion, equal to 11,6 percent of the total non-oil and gas exports. The export ration between the materials (crude palm oil/crude palm kernel oil or CPO/CPKO) and processed palm oil significantly showed the progress with the comparison 10,25% : 89,75%.
Palm oil industries have become the significant sectors in employment that hired about 16,2 million direct and indirect workers. The downstream sectors should be the keys to face the national scale – economic challenges namely to solve the issue for middle income trap.
The gross domestic product (GDP) data in national scale in the second quarter of 2024 reached Rp 5,536 trillion, palm oil processed product and its derivatives contributed 3,5 percent to the GDP.
"It means the economic value in palm oil sectors in the second quarter of 2024 reached Rp 193 trillion," Minister of Industry, Agus Gumiwang Kartasasmita said in the official statement, as InfoSAWIT quoted, Friday (11/10). He also said that by the late of 2024, it is predicted the economic contribution in palm oil – base could be reaching Rp 775 trillion per year.
Indonesia, with its natural resources and massive markets, has the big potential to be the advance country in the world. Agus emphasized it would be significant to get synergy among the stakeholders, both in industrial policy formulation and trade, supply chain reinforcement, human resource development, finance, research and technology development.
“By realizing these, we do hope that national scale industries, namely palm oil would really be the strong pillar of economy nationally. These sectors would play the roles not only in short term – economic progress but also to realize the inclusive, productive, and sustainable economic development target,” Agus said.
Palm oil downstream sectors, if they would be successful, would escalate the derivative products, reinforce the position of Indonesia in the global – scale trade. The policy to increase palm oil additional value would help not only to solve the global – scale challenges, but also would significantly contribute to the economic stability in this country namely to face the external pressures, such as, in the pandemic, and uncertain geo-politic situation.
Indonesia would keep doing its best to increase palm oil use in this country, namely in biodiesel program. after being successful in B30 implementation, the government is now preparing the implementation of B40 and even it is hoped to realize B100 in the future to minimize fossil fuel dependence.
By the strategic things, Indonesia would be optimist to reinforce its domestic industries namely in palm oil sectors, and maintain the economic stability in the global scale – challenges. (T2)
