Activities of palm oil processing industry boost the regional economy

14 July 2022 11:52

JAKARTA - The Ministry of Industry is determined to continue to implement the downstream industrial policy, with the aim of increasing the added value of domestic commodities which will lead to public welfare. This strategic goal is realized in the activities of the palm oil processing industry which is now growing in the country.

“The palm oil processing industry is growing, including those in the Dumai industrial area. In fact, its activities are able to make a significant contribution to the regional economy," said the Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika in Jakarta, Wednesday (13/7).

On the occasion of the working visit of the Indonesian House of Representatives Commission VII in the Dumai Industrial Estate, Riau, last Monday, the Director General of the Agro Industry stated that the processing industry still dominates in its contribution to spurring economic growth in Riau Province with a contribution of 28.08 percent in 2021. Gross regional domestic product (GDP) GRDP) of Riau province is the second largest in Sumatra and the sixth largest nationally.

"In the past 10 years, exports of palm oil derivative products have increased quite significantly, from 20% in 2010 to 80% in 2020. This is in line with the target of the development roadmap for the downstream palm oil industry which is regulated through Minister of Industry Regulation No. 13 of 2010," he said.

In the downstream vision of 2045, Indonesia targets to become a center for producers and consumers of palm oil derivative products in the world, so that it can become a global CPO price setter. There are a number of policies that need to be implemented, including increasing productivity, downstreaming of oleofood, oleochemicals, and biofuels. In addition, strengthening ecosystems, governance, and capacity building. (LM)

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