Coordinator Minister in Economy: Indonesia’s Economy is Helped in Pandemic

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Coordinator Minister in Economy: Indonesia’s Economy is Helped in Pandemic

InfoSAWIT, JAKARTA – Coordinator Minister in Economy, Airlangga Hartarto thought, palm oil stakeholders play important roles to help people’s economy. In Covid-19 pandemic, the industries contribute to people’s economy and country that our economy positively develops. Besides making significant exchange, the industries also contribute to provide both direct and indirect employment.

“Palm oil sectors maintain 16,2 million workers who depend their lives on the sector in pandemic which hits for almost two years,” he said when delivering opening remarks at the 17th Indonesian Palm Oil Conference and 2022 Price Outlook, that InfoSAWIT joined, Wednesday (1/11/2021).

He continued that President Joko Widodo has vision that Indonesian palm oil industries could be advance to develop downstream industries. By having 10% of total vegetable oil plantations in the globe, he predicted, Indonesia could be the biggest palm oil producer and master some of palm oil markets in the world.

Compared to other kinds of vegetable oil, such as, sunflower oil, palm oil is more competitive. Besides having no vast plantations to develop like sunflower, palm oil plantation productivity in Indonesia is much higher than it. “Palm oil industries contribute to exports in national scale, about 15,6% in 2020. The numbers are exchange contributors that consistently keep increasing though it is in pandemic,” Airlangga said.

Until now palm oil plantation canopy which has been coordinated by Coordinator Ministry in Economy in 2019 lays about 16,38 million hectares within details, smallholders’ plantations about 41%, government’s plantations about 6%, and big private sectors about 53%. He also emphasized, smallholders’ replanting program (SRP) is crucial to increase their productivity, reinforce human resources, and increase smallholders’ welfare.

Meanwhile, Chairman of Indonesian Palm Oil Association (IPOA), Joko Supriyono believed that in 2022 palm oil industries would massively contribute, namely in sustainable economic recovery. “We believe that next year palm oil industries will always be the main contributors to Indonesian exchange,” he emphasized.

He thought, palm oil demands would be increasing namely when energy crisis happens in many countries, such as, China and United Kingdom.

“Energy crisis in some countries gives the chance for palm oil renewable energy, such as, biodiesel as the sustainable solution and alternatives,” he said. (T2)