The Palm Oil Industry Could Be The Savior of Papua's Economy




The palm oil industry is still the most promising industry for the national economy and of course it also contributes to the progress of the regional economy, especially the eastern part of Indonesia.

The area of ​​oil palm cover in Indonesia is 16.38 million hectares, meanwhile the area of ​​oil palm cover in the eastern part of Indonesia (Sulawesi, Maluku and Papua islands) is 553,952 hectares or 3.38 percent of the total national oil palm cover.

Especially for Papua, the area of ​​oil palm cover is 58,656 hectares and West Papua is 110,496 hectares.

Deputy for Food and Agriculture of the Coordinating Ministry for Economic Affairs, Musdhalifah Machmud, said that the locations of oil palm cover in the West Papua region are in several districts, namely Manokwari, Sorong, South Sorong, Maybrat, Teluk Bintuni and Fak Fak.

The locations of oil palm cover in the Papua region are in several districts, namely Nabire, Jayapura, Keerom. Boven Digoel, Mappi and Merauke. The distribution pattern of oil palm cover in this area is also clustered and collaborative.

The potential for oil palm development in Eastern Indonesia must be carried out because it aims to alleviate poverty and encourage regional economic growth so as to create a multi-player effect.

Efforts to alleviate poverty that have been carried out through oil palm by means of the People's Oil Palm Rejuvenation Program (PSR), in general, the PSR target for 2020-2022 reaches 540 thousand hectares, in 21 provinces involving approximately 43 thousand planters, specifically for Papua, the PSR target reaches 6 thousand hectares.

The benefits of PSR include increased crop productivity, increased farmers' income and sustainable palm oil management.

"The 2020-2022 PSR target on the island of Papua is 6 thousand hectares, consisting of West Papua 3 thousand hectares and Papua 3 thousand hectares," said Musdhalifah in a discussion written on Tuesday (13/4/2021).

The challenges of developing oil palm plantations in Papua are low productivity of smallholder oil palm plantations, inadequate infrastructure and transportation facilities, social conflicts with indigenous peoples and limited community capacity.

The government policies needed for the development of smallholder palm oil are the rejuvenation of smallholder oil palm, infrastructure improvement and multimodal programs in Papua, the Moratorium on Licensing for Oil Palm Plantation and the National Action Plan for Sustainable Oil Palm Plantations and finally the need for a Certification System for Indonesian Sustainable Oil Palm Plantation (ISPO).

Meanwhile, Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI), Tungkot Sipayung, said that oil palm plantations helped build a new center of economic growth in Papua.

"Especially in the Keerom, Sorong, South Sorong, Manokwari, Bintuni Bay, Fak Fak and Merauke areas," said Tungkot.

Broadly speaking, Tungkot assessed that there are two main benefits of oil palm that are most felt, namely reducing poverty in rural areas and absorbing direct and indirect labor.

SOURCE: https://www.suara.com/bisnis/2021/04/13/103726/industri-kelapa-sawit-bisa-jadi-penyelamat-ekonomi-papua

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