Economist: Government Must Have Policy to Increase Palm Oil Price Increase

By : Hariyanto And Aldo Bella Putra | Tuesday, May 01 2018 - 18:30 IWST

kelapa sawit
kelapa sawit

INDUSTRY.co.id - Makassar - Economist from the University of Indonesia Dr Lana Soelistianingsih said the government should have a policy breakthrough to boost palm oil or coconut palm oil (CPO) prices and protect smallholders.

"Looking at current CPO market issues, there should be a breakthrough of government policy, so that Indonesia has a role in the world market, which is a note to save plasma farmers in the field," Soelistianingsih said in Makassar on Monday (30/4/2018).

According to the lecturer of Faculty of Economics UI who is also Chief Economist of PT Samuel Aset Manajemen, the importance of the policy breakthrough is because Indonesia is listed as the largest CPO producer in the world and also many areas in Indonesia that depend on the production of palm oil.

Related to that, he added, if the CPO price does not improve, there will be burden in the region and that will also be a burden for the nation.

"Because we see regional contribution from CPO to gross domestic product (GDP) is still 42 percent and that is quite big," said Dr. Lana on the sidelines of the event "Media Gathering" Representative Office of Bank of South Sulawesi in Makassar.

Meanwhile, the area of ​​oil palm plantation almost covers all areas in Java Island, and then added other areas in Indonesia.

"Reviewing the condition, it is natural that CPO price in the field does not improve, it will be a pressure especially workers in agriculture sector which generally is plasma farmers," he said.

Seeing that condition, he added, should be a consideration for the central and local governments to be able to take strategic policy in encouraging the economic sector based on smallholder agriculture and involve a lot of manpower. (ant)

News Comment

Today's Industry

The President Director of PT Trimegah Sekuritas Indonesia Tbk (TRIM), Philmon Tanuri (left) delivered remarks at the kick off of Trimegah's collaboration with IA SBM-ITB in Jakarta on Wednesday (05/06/2024).

Jumat, 07 Juni 2024 - 19:43 WIB

Trimegah Sekuritas Supports Ikatan Alumni SBM-ITB to Realise Lifelong Learning Mission

In order to realise its mission of “Educate and create wealth for community through unique and professional investment experience”, PT Trimegah Sekuritas Indonesia Tbk (TRIM) collaborates…

Wellington College Independent School Jakarta (WCIJ)

Senin, 29 April 2024 - 05:02 WIB

One of the UK’s Most Established Schools Chooses Jakarta for Their Latest Opening

Wellington College Independent School Jakarta (WCIJ) is thrilled to announce its grand opening in September 2024! As the first private UK school to open in Indonesia, WCIJ, a pioneering co-educational…

Presiden Jokowi

Selasa, 23 April 2024 - 10:29 WIB

President Jokowi Reaffirms Commitment to Farmers’ Welfare

President Joko “Jokowi” Widodo on Monday (04/22) inspected corn harvest in Boalemo regency, Gorontalo province. “Our corn import has decreased significantly from 3.5 million tonnes to…

Photo: Aris Nurjani/VOI

Rabu, 28 Februari 2024 - 12:47 WIB

Carsurin and NBRI Strengthen Strategic Alliance to Propel Indonesia’s EV Industry

PT Carsurin Tbk ("Carsurin") and the National Battery Research Institute ("NBRI") are pleased to announce the signing of a pivotal Strategic Alliance Agreement (SAA), marking a significant advancement…

Beras (Foto/Rizki Meirino)

Rabu, 21 Februari 2024 - 08:43 WIB

Gov’t to Continue Disbursing Rice Assistance

President Joko “Jokowi” Widodo has ensured that the Government will continue rolling out the rice assistance program for low-income families. The President made the statement when handing…