This week, Indonesia Palm Oil Facts released an updated version of its online platform to highlight the role the Indonesian palm oil industry is playing to help achieve the goals of the Indonesian G20 Presidency ahead of the G20 Summit in Bali this month.
Indonesia’s leadership of the G20 has coincided with a series of global upheavals, as the world attempts to recover from the global pandemic, adapt to a new digital landscape and make a transition to renewable energy.
For its Presidency, Indonesia has adopted the theme of ‘Recover Together, Recover Stronger.’ The Indonesian palm oil industry has played a pivotal role in Indonesia’s recovery, and it will continue to make Indonesia stronger through efforts in five key areas.
Strengthening the Economy
As a major contributor to the Indonesian economy, contributing between 9 & 17 percent of the GDP annually, the Indonesian palm oil industry has helped cushion the economic blow of the COVID pandemic and continues to contribute significantly to household incomes. Overall, the industry employs 8 million Indonesians making up 3.5 percent of the country’s workforce.
The palm oil industry has made substantial financial and social contributions to Indonesian communities and has already helped lift as many as 2.6 million Indonesians out of poverty since 2000. Indonesia’s 4 million smallholders also benefit greatly from the industry – palm oil farmers across the country have better health, education and nutrition outcomes due to higher farm incomes.
The EU has enacted bans and other trade measures against palm oil due to the competitiveness of the industry; however, the Indonesian government continues to promote strong sustainability standards that respect even the strictest trade rules and regulation. Despite protectionist barriers, palm oil remains Indonesia’s second-largest export and is worth around USD35 billion annually. It is an industry that works to strengthen Indonesia’s relationships with partners across the globe.
Today, Indonesia has the world’s second largest protected forest area. In the past two decades, deforestation in Indonesia has fallen by 75 percent and deforestation from oil palm has declined by nearly 300,000ha in the last 10 years. Additionally, the introduction of the mandatory Indonesia Sustainable Palm Oil (ISPO) standard will continue to ensure positive environmental, social and economic outcomes for Indonesia and its people.
Overall, the Indonesian palm oil sector directly and indirectly supports more than 21 million workers. Plantations employ more than 20 million workers who are generally paid more than plantation workers for other crops. Oil palm plantations are also the largest GDP contributor (35%) to the agricultural sector. In recent years, Indonesia has worked closely with the International Labour Organization (ILO) to ensure child and forced labour are eradicated from the palm oil sector, and to ensure those policies are encouraged around the world.
The Indonesian palm oil industry remains committed to supporting Indonesia’s goals as Chair of the G20. During the G20 Summit in Bali next week, the industry will be engaging in the conversation in real time and making sure the palm oil industry helps to drive the conversation around the G20’s goals in the coming years.
Learn more on the G20 webpage here
Check out the new Indonesia Palm Oil Facts website here