The Economic Benefit of Palm Oil to Indonesia

February 2011 – A Study by World Growth

Indonesia is one of the world’s largest producers of palm oil and the industry has been the economy’s most valuable agricultural export sector for the past decade. The palm oil industry is a significant contributor to production in Indonesia. In 2008, Indonesia produced over 18 million tonnes of palm oil. The industry also contributes to regional development as a significant source of poverty alleviation through farm cultivation and downstream processing. Palm oil production provides a reliable form of income for a large number of Indonesia’s rural poor, with one source suggesting that employment generated from palm oil production in Indonesia could potentially reach over 6 million lives and take them out of poverty.   This report has been prepared as an independent assessment of the economic benefits of the palm oil industry to inform policy makers and officials. It examines recent industry performance and considers the prospects for future growth.

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Click here to read the rest of the World Growth report – Bahasa version

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