Expansion Of Palm Oil Plantations Sharing The “Economic Pie”

The first oil palm plantation (in 1911) was developed only at 2 provinces namely North Sumatra and Aceh. Starting from these two provinces, then the palm oil plantations were developed in many other areas across different provinces in Indonesia. The first CPO products in Riau Province was produced in 1982, and then followed by South Sumatra in 1983. Later on, the first palm oil production in West Sumatra, West Kalimantan, and Papua obtained in 1984, and were followed by Central Kalimantan, North Kalimantan, East Kalimantan (1986), Jambi and Lampung (1987), Bengkulu (1988) and Sulawesi (1989).

Until 2017, oil palm plantations have developed in approximately 26 provinces and 200 districts across the country. Meanwhile, almost all activities of palm oil downstream industry, especially the trade in palm oil products have developed in all provinces / districts / cities in Indonesia. In 24 hours a day, societies in Indonesia must have consumed various types of palm oil products. Regardless wherever, whenever, or whoever, palm oil products have now become a part of people’s daily lives.

The expansion of oil palm plantations from Aceh and North Sumatra throughout entire provinces of Indonesia can be seen as an expansion and distribution of an “economic machine” to produce and share the “economic pie”. With the expansion of the oil palm plantation, so many potential hidden in various remote, suburb, or inland areas (which are previously untapped) could be utilized properly. By the “economic machine” that is called oil palm plantation business, the potential of each region was utilized to produce “economic pie” in the form of employment opportunities, business opportunities, income and the provision of multi palm-based products. Because of these oil palm activities, millions of people are able to find jobs, free from poverty or could even increase their income.

Not only serves as the “economic machine”, but oil palm plantations also serves as the “”vacuum cleaner” or an air purifier, which produces an “economic pie in environmental services” that it absorbs carbon dioxide from the air and produces oxygen for life. Part of air pollution that we dispose of every day such as exhaust gases from motor vehicles are cleared by oil palm plantations. Oil palm trees also produces the oxygen that we inhale every day.

 Through downstream activity and trade, the “economic pie” of various palm-based products such as cooking oil, butter, soap, detergent, shampoo, biodiesel and etc., are available for the entire community wherever, whenever and whenever. This is what is called to be sharing the benefits of the “economic pie” from palm oil. Palm oil for all.

With the expansion of oil palm plantations from Aceh and North Sumatra throughout the entire provinces in Indonesia, the “economic pie” from palm oil is not only enjoyed by the locals, but also enjoyed by the entire nation. So, the expansion of oil palm plantations need not be questioned as long as it is carried out with sustainable governance and complies with the applicable laws and regulations.

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