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Palm oil Boosts the Regional Economy



Palm oil Boosts the Regional Economy

InfoSAWIT, BALIKPAPAN — The founder of Indonesian Palm Oil Association (IPOB) South Kalimantan Province, Untung J Wiyono said, there are some indicators showing the increasing economy. The first, plantation contributes to the gross regional domestic product in the last five years, reaching 4,67% in average.

Then palm oil industries have provided employment and increased the people’s income, namely in the palm oil areas. The circulation of the money in the society in 2016, as the influence of the industries, had reached Rp 4,07 billion or Rp 339,17 billion per month.

“The workers got their salary about Rp 2,3 million ton per month in average and they got their income from their fresh fruit bunch (FFB) in every ton. So they had double income, as the smallholders, and workers,” he said when talking in Sustainable Palm Master Class in Palangka Raya, last week, as quoted fromprokal.co.

 

The circulation of money derives from: the workers in the agronomy unit, reaching 91.550 men, the workers in factories reaching 4.380 men, transportation about 2.812 men, and the smallholders about 891.776 men. He thought, this is different from the other industries, such as, mining, which in general, the money would be more out of the region.

 

He also said, the palm oil industries contribute to the government, starting from the Income Tax, about 10% from the FFB which has no its own factory; Income Tax from CPO about 10%; the citation from Palm oil Plantation Fund Management Agency (PFMA) to the palm oil exports reaching US$ 50 per ton; tax of the institution (company) and others. “As a matter of fact, the country has got much from this sector,” he said.

 

He also explained, palm oil industries in South Kalimantan start from 1980s. It was planted in Sub district of Pulau Laut, District of Kotabaru. From the pilot project about 300 hectares, the result was amazing. The next, the expansion of the main plantation and the CPO factory started in 1990s in three districts. Now palm oil has been developed in 12 districts in the province.

 

From the plan of palm oil area in the province, reaching 773.093 hectares, by 2015, there had been 51,26 percent of the areas having Cultivation Rights within 54 big private companies. While the rests, or about 384,511 hectares are in process within 21 big private companies.

 

“Besides there are 35 palm oil factories in some districts. There are two refinery or cooking oil factories and one biodiesel factory,” the former Chairman of IPOA of South Kalimantan said. (T3)


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