Palm oil industry should aid in increasing public welfare: Minister
24/08/2022 (Antara News), Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto believes that existence of the palm oil industry and its products should be able to increase the people's welfare.
"We need to continue to encourage this high export potential in line with the price increase in palm oil commodities for the welfare of the community," Hartarto noted at the 5th Borneo Forum organized by the Indonesian Palm Oil Association (Gapki), as quoted from an official statement received here, Wednesday.
He remarked that the palm oil industry should be able to build rural progress, reduce poverty significantly, and absorb a high number of workers.
In addition, development of this industry must prioritize aspects of sustainability for the environment and society in order to comply with the principles of sustainable development, Hartarto stated.
"The large contribution of the palm oil plantation sector must be accompanied by sustainability for the environment and the wider community," he remarked.
He later highlighted that the government had implemented various comprehensive policy frameworks and encouraged multi-stakeholder cooperation to consider environmental sustainability aspects of this industry.
The policy framework is in the form of the Indonesian Sustainable Palm Oil (ISPO) Certification, the National Action Plan for Sustainable Palm Oil (RAN-KSB) 2019-2024, and the National Strategic Program on People's Palm Oil Rejuvenation (PSR).
On the occasion, the minister also urged regional heads to oversee the sustainability of palm oil investment, provide legal certainty for businesses, encourage the implementation of the people's palm rejuvenation (PSR) program, maintain partnerships between smallholder palm oil plantations and large plantations, facilitate problem-solving, and promote the palm oil industry in their area.
With such efforts, Hartarto believes that the palm oil industry would contribute to regional development.
As is known, Indonesia is the largest palm oil-producing country that accounts for 54 percent of the world's market share. The export of industrial products is reported to reach more than 125 countries in the food, energy, and various other downstream industries.