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20 Importance of Palm Oil in Indonesia You Have to Know

by Fifi Fitriani

Palm oil is a type of oil that is safe for people to consume. They are harvested from plantations that grow the palm trees. The palm oil plantations are very important in the country.

Moreover, the oil gives life to the country and to the people that live in it. These are the 20 Importance of Palm Oil in Indonesia which you have to know.

1. Give Jobs

The palm oil industries in Indonesia give people jobs. Those who live around the areas will have the chance to join the industries. By letting them have jobs, the unemployment rate in Indonesia can drop. The jobs they provide will give the poor people a way to get out of their horrible condition. Moreover, the industries are giving them a chance to have a better opportunity in their lives.

2. Provide Livelihood for Poor People

These poor people are spread all over the country. Many factors cause them to be poor including lack of job and lack of skill. But with more job opportunities from the palm oil industries, they might have more money to rebuild their lives. Over time, they might be able to live a decent life.

3. Increase Industries in Indonesia

Increasing the amount of industries in Indonesia is a great thing. It opens many doors for those who are looking for jobs. The palm oil industry also contributes to the growth of the country. More industries mean an increasing chance for competition. That sounds like a bad thing but it’s not. Competition can help industries to become better and keep inventing new innovations.

4. Manufacture Various Necessities

Palm oil is an important element in producing many things. They are present in almost everything. Palm oil is used in your soap, cosmetics, snacks, cleaning solutions, cooking oil and your toothpaste. It would be difficult to make these products without the oil as it gives a certain property that cannot be replicated by using other ingredients.

5. Contribute to Export Products in Indonesia

Indonesia is profiting a lot of money from the palm oil. The export of the palm oil from Indonesia has earned the country around $5.7 billion. Indonesia is expecting to increase this number by the year of 2020. As long as Indonesia is able to continue producing the oil, it will keep on receiving more money.

6. Main Producer of Palm Oil in the World

Indonesia currently holds the title as the main producer of palm oil in the world. The islands where the palm oil plantation is the most abundant is in Sumatra and Borneo. The plantations of the palm oil measure up to more than 7.8 million hectares. That area bears many palm oil that is always ready to harvest.

7. Indonesians are Big Consumers of Palm Oil

One of the biggest consumers of palm oil are Indonesians themselves. The population number is high and the country keeps experiencing better economy condition. Thus, consumption tends to grow every year. They often buy the necessities that they need in their households. You may want to know the consumer buying habits in Indonesia so you can understand the situation better.

8. Feed Indonesians

The current population in Indonesia is more than 7 billion. Plenty of people need to be fed. The country will have to provide them with sources of food. Palm oil makes it easier and faster to produce the food. The oil also helps in providing a wider distributions of food in various forms for these people. If there were no palm oil, sourcing food would be difficult. Moreover, they might not even be that affordable which will cause people to be underfed.

9. Maintain Economic Strength of Indonesia

Palm oil plantations help in maintaining the economic strength of Indonesia. Without the plantations, there is a chance that the economy would collapse. A collapse in the strength of the economy would be devastating for everyone. There would be a huge loss of money and profit for Indonesia. It would cost people in losing their jobs and sources of income. The country would enter a serious crisis when that happens.

10. Provide Affordable Products for Indonesians

Without the palm oil plantations, Indonesia may need to import the oil from other countries. That will make so many products to become pricier. Many people won’t be able to afford most of their daily needs. They will also be put off by the expensive things they have to buy. The economy will experience a troublesome time because nobody is purchasing anything. But, since the plantation is already big in the country, people don’t have to pay for palm oil from other countries. Thus, the price can still be affordable.

11. Give Regions a Source of Income

Palm oil industries give the regions surrounding them more income. The income that the areas earned can be put into good use. The money can help in improving the living conditions of the people there. Various infrastructures can be built, hospitals can be given and schools can become available for the children. These important buildings will help the community to survive.

12. Reduce the Rate of Poverty in Indonesia

There is still a high number of poverty in Indonesia. A way to reduce that number is by providing more jobs that they can do. The palm oil plantations can create new jobs as the industry is very big. It’s not an absolute solution for abolishing poverty. However, it can slowly decrease the number. Without the palm oil industries, people will have less chance to find jobs. More and more people will become poorer.

13. Fast Production of Oil

Palm plantation provides oil at a fast rate. This can help providing raw materials quickly to other industries in the country. In return, they can also give constant and stable supply necessities that Indonesians need. People can have more security when it comes to their needs. The country can still maintain its economic growth too.

14. Provide Nutrients to Indonesians

Palm oil actually has many beneficial properties for Indonesians. They can provide the people with important nutrients. Palm oil is rich in vitamin A and vitamin E. Indonesians can get healthy from consuming the oil. The oil can also help in improving the conditions of people who suffer from malnutritions due to poverty.

15. Reduce Rate of Illness

Other than providing necessary nutrients, palm oil can also reduce the rate of illnesses in Indonesians. The people are plagued with many cases of strokes, heart diseases and high cholesterol which are some of the common diseases in Indonesia. According to research, palm oil can help improve the body metabolism and overall health. Thus, Indonesians have more chance in avoiding these deadly illnesses.

More Importance (16-20)

Here are more reasons why palm oil is important in Indonesia.

  • Help in Economic Activities: People rely on palm oil for frying food or baking. The food can be sold to other people. You can read on why Indonesia is good for business.
  • Provide Materials for Other Industries: Palm oil serves as biofuel for other industries.
  • Versatility: The oil can have versatile usage and transformed into many things.
  • Easy to Grow: The trees are easy to grow. They are cold tolerant as well which could help them stay alive during rainy season.
  • High-Yield: The harvest amount for palm oil is very high which is good and beneficial for industries.

Palm oil is very crucial to the wellbeing of everyone in Indonesia. The country is always striving to making the palm oil industries to become more sustainable. In the long run, the palm oil plantation is hoped to give permanent positive impacts in the world.

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