JAKARTA - The Ministry of Industry focuses on implementing the downstream industry policy as an effort to increase the added value of domestic agro-based commodities, including palm oil. The palm oil processing industry plays an important role in growing the national economy. This industry is able to absorb the results of smallholder farmers' production, improve the welfare of independent oil palm farmers, and increase foreign exchange earnings for the country.
The activities of the palm oil processing industry also provide a multiplier effect such as growing new palm-based industrial areas such as in Dumai (Riau), Sei Mangkei and Kuala Tanjung (North Sumatra), Tarjun (East Kalimantan), and Bitung (North Sulawesi), as well as creating centers new economic growth. In addition, mobilizing productive activities for plantation business activities in the palm oil industry sector, especially in the 3T (outermost, underdeveloped, and innermost) areas.
“The palm oil processing industry chain has also absorbed more than 5.2 million direct workers and supported up to 20 million people. In 2021, exports of palm oil products will reach 40.31 million tons with a value of USD35.79 billion, an increase of 56.63% from the export value in 2020," said Industry Minister Agus Gumiwang Kartasasmita in Jakarta, Monday (18/7).
The Ministry of Industry continues to encourage the downstream palm oil processing industry to produce various quality and competitive derivative products. This step needs to be supported by the availability of raw materials and supported by the use of technology and the use of the latest innovations, so that downstream products can be accepted by global consumers.
“In 2011, there were only 54 types of downstream palm oil products that we produced. Meanwhile, currently there are 168 types of palm oil downstream products that we have been able to produce by the domestic industry. This means, over the past 11 years, the increase has more than tripled," he said.
In the downstream vision of 2045, Indonesia aims 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. (LM)