Challenges and opportunities of the palm oil industry in Indonesia
6 October 2021
Spire Consultant, Naletha G. E. Pangemanan, shares insights on the challenges and opportunities of the Palm Oil industry in Indonesia with TechnoBusiness.
The palm oil industry plays an important role in Indonesia’s economic growth, employing about 16 million workers and contributing to 3.5% of Indonesia’s GDP in 2020. Palm oil is an important commodity with a diverse range of uses, from food to cosmetics to energy. Its use as a biodiesel might also help to meet domestic demand, contributing to Indonesia’s national energy sovereignty. The high land productivity, versatility, and relatively low cost of palm oil has led to it being an extremely popular product.
However, there are environmental and social concerns plaguing the industry, such as illegal deforestation, forest burning and land acquisition issues. Indonesia was ranked 36 of 47 countries on the Environmental, Social and Governance (ESG) index, which might deter investors and foreign consumers. There is therefore a need for special attention to be given to ESG to reduce the challenges the palm oil industry faces.
Click here to read the full article at TechnoBusiness.
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