CPO's Contribution to Indonesia's Economy Reaches USD80.9 Billion

Bogor, Indonesia (News Today) - The oil palm industry is expected to contribute US$80.9 billion to the national economy in the next four years, an expert said.

Over the period the oil palm industry would serve as the main engine of the national economy because of its role in contributing foreign exchange earnings to the state coffers and in promoting the people’s living standard, Prof Dr Erliza Hambali MSi of the Bogor Institute of Agriculture (IPB) said here on Sunday.

With the projected foreign exchange earnings of US$80.9 billion in the 2010-2014 period, crude palm oil would serve as the country’s key food commodity, he said.

"Palm oil will contribute 80 percent of the country’s key food commodities as a whole," Erliza said.

The remaining 20 percent would come from tea, coffee, cocoa, tuna and shrimp, he said. He said only 55 percent of the country’s CPO was processed domestically to produce goods with low added value, and the rest was exported.

This suggested that much of the added value was enjoyed by CPO-importing countries which could produce it into goods with high value added, he said. Therefore, he added, the government should encourage the development of the downstream palm oil industry which would increase foreign exchange earnings to the state coffers and promote the people’s living standard.

Source : kompas

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