Economic Benefits of Palm Oil
There’s so many anti-palm oil campaigns with various negative sentiments, but in reality, palm oil plantations contribute to various aspects of life, such as economic, social culture, and last but not least, our environment, which makes it the only sector that can be up to par with agriculture. Some people might also view palm oil plantations as sustainably questionable while, in fact, it is clear that its development has increased significantly and proven to be sustainable across generations.
It is very unlikely for industrial sectors to be able to create economic, social and ecological benefits at the same time. However, palm oil plantations have proven to generate economic benefits, such as helping to improve foreign exchange for the government, increasing the income of people within the industry, as well as producing food, biofuels, biomass and biomaterials. In 2020, B30 was able to reduce solar imports worth US$3.73 billion which, of course, created a positive impact for Indonesia’s trade balance.
Other than absorbing upstream workers, palm oil plantations also contribute to environmental conservation in producing oxygen, helping to absorb carbon dioxide, increasing biomass stocks, as well as conserving soil and water. According to several studies, palm oil plantations can also restore degraded land and reduce greenhouse gas emissions. Based on the latest data, in 2020, biodiesel has succeeded to reduce emissions by 24.6 million tons of CO2 eq or 7.8% of the energy achievement target in 2030.
These numerous advantages of palm oil plantations can be enjoyed by local residents or even by the world community who are involved in the palm oil industry, both directly or indirectly. Safe to say that it is important to continue in making efforts to improve the palm oil plantations management quality to create even greener and more sustainable plantations with ISPO or RSPO certification.