Foreign exchange from Indonesia's palm oil industry reached US$39.28 billion in 2022

JAKARTA,5th March, 2023 (WAM) – The palm oil and derivative products industry would still serve as a crucial pillar of the national economy, Vice President Ma'ruf Amin stated.

"I have confidence that in future, the palm industry will still be an important pillar of the national economy," Amin stated at the Vice President's Palace as quoted by Indonesia News Agency (ANTARA).

The vice president made the remark while opening the11th national meeting of the Indonesian Palm Oil Association (GAPKI), also attended by Agriculture Minister Syahrul Yasin Limpo and Head of GAPKI Joko Supriyono.

Currently, the palm oil industry has been one of the national economic backbones, the vice president affirmed.

In 2022, foreign exchange from the palm oil industry reached US$39.28 billion, thereby making the figure the highest as compared to past years.

"Palm is gift from the God Almighty to Indonesia, which we much be grateful for," the vice president remarked.

Indonesia's climate and soil conditions allow for palm to thrive, thereby ultimately contributing positively to the national economy, he elaborated.

Amin remarked that the palm oil industry met a third of the global demand for vegetable oil.

It was estimated in 2035 that the demand for oleofoods, or palm products for food, would reach US$106.16 billion, and demand for the oleochemical industry would reach US$190 billion, he remarked.

He stressed the need to tap into the potential of the palm oil industry.

"Palm industry also provides vast job opportunities for some 16.2 million workers, directly or non-directly. This means that a sustainable palm plantation is no longer an option, as it (has become) a must," he emphasized.

Hence, the government consistently improves palm management efforts, such as by formulating the National Action Plan on Sustainable Palm Plantation for 2019-2024.

"Among the targets we aim for are the farmers' capacity and capability improvement; plot status legalization; use of palm as new, renewable energy; and pursuing diplomacy to achieve sustainable palm plantation," the vice president elaborated.