"Palm oil exports must be strengthened due to the current high global commodity prices," Hartarto noted during his virtual speech at the 5th Borneo Forum in Palangka Raya, Central Kalimantan, on Wednesday.
Hartarto called to also focus on the development of downstream palm oil products to provide added value. The government is optimistic that Indonesia would be able to export more palm oil derivative products than export raw materials, such as crude palm oil (CPO).
"Development of the downstream industry is a strategic effort to increase the added value of the palm oil industry. We must support industry downstreaming to the final product to bring more added value to the national economy," he affirmed.
He addressed that the government paid attention to the sustainability aspect of the palm oil industry to realize an environmentally friendly industry in line with the Sustainable Development Goals (SDGs).
"The government has demonstrated its seriousness in the principle of sustainable development through the Presidential Instruction regarding the Indonesian Sustainable Palm Oil (ISPO)," the minister stated.
Moreover, Hartarto urged regional heads to oversee the palm oil industry, provide legal certainty, and assist palm oil companies in the regions in solving problems related to land and communities.
He affirmed that the Indonesian palm oil industry had an important role in the Indonesian economy, both in the present and subsequent decades.
The palm oil industry has become the main source of income for some 17 million households, farmers, and employees, who work in the on-farm and off-farm sectors, Hartarto noted.
As a trading commodity, foreign exchange exports from the palm oil industry reached US$35.53 billion in 2021 that created a surplus in Indonesia's trade balance amounting to US$33.82 billion.
Currently, exports of palm oil products are aimed at more than 125 countries in the world and have been used for various purposes, such as in food, energy, and various other downstream industries.
In addition, the production of palm oil has become a raw material for biodiesel that plays an important role in suppressing oil and gas imports.
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Translator: Aditya Ramadhan, Resinta S
Editor: Rahmad Nasution
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