Sri Mulyani: Palm Oil Downstream Industries Are Important to Increase Revenue

Sri Mulyani: Palm Oil Downstream Industries Are Important to Increase Revenue

InfoSAWIT, JAKARTA – Minister of Finance Indonesian Republic, Sri Mulyani said, palm oil downstream industrial development that President Joko Widodo told are important to increase added value exports knowing that this commodity is the mainstay export from Indonesia.

“The more increasing downstream sectors are, the bigger added value will be. If downstream products are in export, there will be bigger exchange to welfare our people in Indonesia,” she said at 17th  Indonesian Palm Oil Conference and 2022 Price Outlook di Jakarta, Wednesday (1/12/2021) that InfoSAWIT joined.

Sri Mulyani thought, palm oil is very potential as material for many industries.

“But palm oil downstream industries do not develop much yet. That is why President Joko Widodo urged to develop added values from palm oil by realizing downstream sectors,” she said.

Besides having increasing revenue, Sri Mulyani continued, palm oil downstream sectors will increase smallholders’ economy and other stakeholders.

She thought, palm oil plays important roles not only in economy but also to welfare people.

She continued, the direct workers in palm oil plantations as smallholders reached 4,2 million men while 12 million men indirectly work in palm oil products.

At the moment, she also mentioned, Palm oil Plantation Fund Management Agency (PFMA) should urge to increase independent smallholders’ palm oil productivity because they have limited areas and smaller numbers of productivity than those produced by big private sectors.

“PFMA is in charge to help independent smallholders from replanting and productivity per hectare to increase their welfare,” she said.

Sri Mulyani also mentioned, the exchange from palm oil sectors reached US$ 21,4 billion or more than 14 percent of total exchange in non-oil and gas sectors.

“We also take advantages to solve oil import - dependence through biodiesel program,” she said. (T2)