Jakarta, 2021-04-08, Ministry of Finance of Republic of Indonesia.
The industry of palm oil in Indonesia prioritizes the balance of social, economic, and environmental. This is in line with the commitment of the Government of Indonesia to implement sustainable development in the National Medium-Term Development (RPJMN) 2020-2024. This plan has a purpose to provide access to equitable and inclusive development for all societies, as well as to protect the environment.
Indonesia has also committed to presenting the sustainable and equitable palm oil industry, not only in the level of National, but also in the International level.
Airlangga Hartanto – Coordinating Ministry for Economic Affairs
The latest policy to accelerate sustainable palm oil development in the presidential decree Number 44, 2020 about Indonesia Sustainable Palm Oil Plantation Certification System or we know as Indonesian Sustainable Palm Oil (ISPO).
This regulation requires all palm oil companies and smallholders to get the ISPO certificate, as a guarantee that the production activity have followed the principle of sustainable.
Airlangga Hartanto – Coordinating Ministry for Economic Affairs
Palm oil product and its derivates have been used by every industry, starting from food and beverage, beauty, medicine, and energy sector. Until now, the area of palm oil plantations in Indonesia reaches 16.3 million hectares, involves more than 16 million workers, and produces more than 35 million tons of palm oil in 2022.
For the information, Indonesia is the largest palm oil-producing country in the world which has an important role to supply and fulfilling the global demand for vegetable oil. Even though in 2020 Indonesia was hit by the Covid-19 pandemic, the export values of palm oil still showed a positive number around 22.97 billion dollars or grew around 13.6% compared to 2019. It shows that palm oil product brings a significant contribution towards foreign exchange.
For reference, the price of crude palm (CPO) oil in April 2021 is quite high around US$1,093.83 per ton. Meanwhile, the export duty imposed on CPO exports is US$116 per ton. This will have a positive impact on the country to bring welfare to the palm oil workers.
Source: Ministry of Finance of the Republic of Indonesia website
