Palm oil is a plantation commodity that has a strategic role in Indonesia's economic development. As the largest palm oil producer in the world, the palm oil industry has provided employment for 16 million workers, both directly and indirectly.
Production of palm oil and palm kernel in 2018 was recorded at 48.68 million tonnes, consisting of 40.57 million tonnes of crude palm oil (CPO) and 8.11 million tonnes of palm kernel oil (PKO). The total production came from People's Plantations amounting to 16.8 million tonnes (35%), Large State Plantations amounting to 2.49 million tonnes (5%), and Large Private Plantations amounting to 29.39 million tonnes (60%).
"The wealth and glory of Indonesian plantations have been famous for a long time and have a long history in the journey of the Indonesian nation. "The luxury of spices and our garden products became a favorite in the 18th century and became the target of other nations," said the Coordinating Minister for Economic Affairs, Airlangga Hartarto, opening the webinar activity "Towards Sustainable Indonesian Plantations" organized by PT Research Perkebunan Nusantara by taking theme "Sustainable Smallholder Palm Oil Plantations: Stopping or Regenerating", Thursday (22/4) in Jakarta.
Plantation commodities are the mainstay of national income and foreign exchange, where total plantation exports in 2018 reached 28.1 billion dollars or the equivalent of 393.4 trillion rupiah. It is hoped that the contribution of the plantation sub-sector to the national economy will increase to strengthen overall plantation development.
The palm oil industry in Indonesia was built with an approach that prioritizes balance between social, economic and environmental aspects. This is in line with the Indonesian Government's commitment to implementing sustainable development, which has been specifically regulated in the National Medium Term Development Plan (RPJMN) 2020-2024.