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

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)