Increase in dollar value benefits palm oil industry

Increase in dollar value benefits palm oil industry

A farmer removes newly-harvested palm oil fruit in Padangpariaman, West Sumatra, recently (ANTARA FOTO/Iggoy el Fitra)

Pekanbaru, Riau, (ANTARA News) - The export-oriented palm oil industry has, so far, benefited from the strengthening of the US dollar against the rupiah, according to Riau Governor Arsyadjuliandi Rachman.

The governor, familiarly called Andi Rachman, noted that Riau`s palm oil industry will significantly benefit from the rising US dollar exchange rate.

Hence, he expressed hope that such benefits would also be felt by the community, especially those working as palm oil farmers.

The increase in the value of the dollar against the rupiah will have positive and negative effects, especially on society and the industry.

Export-oriented industries, which import little raw materials, will certainly reap the benefits of the dollar`s appreciation against the rupiah value.

"Conditions such as this have a beneficial effect on the industry," the governor remarked recently on Sept 5.

Palm oil is one of Riau`s mainstay commodities. The province`s palm oil plantations cover more than two million hectares. Palm oil has become a mainstay, as it contributes significantly to Riau`s trade balance from the non-oil and gas sector.

Based on data from the Central Statistics Agency of Riau, in July 2018, Riau`s trade balance recorded a surplus of some $1.29 billion owing to a surplus in the non-oil and gas sector amounting to $998.23 million, while $290.45 million in the oil and gas sector.*** 3 ***

Reporting by FB Anggoro
Editing by Andi Abdussalam
 

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