Palm Industry Contributes Biggest GDP of Plantation Sector

By : Hariyanto And Aldo Bella Putra | Tuesday, December 12 2017 - 21:00 IWST

INDUSTRY.co.id - Jakarta-The Ministry of Agriculture said to date palm oil is still contributing the largest to the national Gross Domestic Product (GDP) of the plantation sector.

Director General of Plantation of the Ministry of Agriculture, Bambang through his written statement received in Jakarta on Tuesday (12/12/2017) stated, in 2016 the plantation sector contributes to the national GDP of Rp429 trillion, greater than the oil and gas sector (oil and gas) whose value is only Rp365 trillion.

"The GDP of the plantation sector is mainly from 15 commodities that generate foreign exchange and the largest contribution comes from palm oil reaching Rp260 trillion," Bambang said at the commemoration of the 60th Plantation Day of 2017 at the Stiper Agricultural Institute (Instiper) campus in Yogyakarta.

According to him, the plantation provides a very important role for the economic fundamentals of the Indonesian nation because in conditions that have not been properly managed, the plantation can contribute significantly to the state revenue.

He mentioned, the average national palm oil productivity of about two tons per hectare (ha), whereas the company has reached 8-10 tons / ha.

To that end, the government is determined to increase the competitiveness of the plantation of the archipelago, because with a condition that has not been well alone has contributed the greatest to the economy, especially if able to strengthen and improve it.

Therefore, Bambang invites all components of the nation to participate in strengthening national plantation commodities in the eyes of the world because many countries do not want plantations in Indonesia to go forward.

"For that, we must be ready to escort the Indonesian plantation to be free from foreign pressure," said Bambang.

He added that various negative issues hit the palm oil commodity, whereas the palm of the world's tropical forest rescue and cultivate the palm can produce food and energy.

Meanwhile, the Deputy for Food and Agriculture Coordination of the Coordinating Ministry for Economic Affairs, Musdhalifah Machmud, said that the plantations serve as a source of prosperity and spur development of remote areas.

"The remote areas are beginning to wake up from plantations because they can build new infrastructure, social and economic communities from plantation crops," said Musdhalifah Machmud.

Rector of the Stiper Agriculture Institute (Instiper) Yogyakarta Purwadi said that plantations become a source of prosperity and welfare of the citizens, because they are able to change the way from the source of exploitation into a good cultivation technique.

Meanwhile, Chairman of the House of Representatives Commission IV Edhy Prabowo added, Indonesia is not afraid of the European Union's palm oil resolution, because the export market of palm to the region is only 15 percent of the total national volume.

"If we stop exporting palm oil to Europe, I'm sure they will be overwhelmed, even though they recognize palm oil imports in Indonesia continue to increase to two billion US dollars," he said.

According to him, the EU palm oil resolution is proof that the inter-state is not there to help each other, let alone the policy makes the Indonesian people difficult.

"The Indonesian parliament has asked the EU parliament to cancel the resolution," he said.

Likewise, political observer J. Kristiadi said the problem of palm oil in the international market is a matter of interest in which developed countries use all instruments to inhibit palm oil and they even make sense of the various certification schemes.

"Inter-state no friendship, there is competition, so Indonesia should use Indonesian-ness to fight for palm in the international arena," said Kristiadi.

According to Kristiadi, all stakeholders in the country must strengthen and convince foreigners that Indonesia is very committed to conducting sustainable oil palm cultivation practices.

This is evidenced by the certification of Indonesia Sustainability Palm Oil (ISPO), which until now the number of ISPO certification that has been issued as many as 346 with a land area of ​​2.041 million ha with total CPO production reached 8.76 million tons.

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