![]() In maintaining and improving the role of oil palm smallholder in economy growth, poverty alleviation, and better income distribution, there are some factors that could undermine or depress the role of the commodity. Moreover, income distribution in oil palm central area is good (fairly egalitarian) with gini coefficient around 0.36. The small proportion (less than 10%) of poor people in oil palm communities can also be use as an indicator of the contribution of the crop in poverty alleviation. The share of oil palm related asset to total household asset is also very significant, estimated to attain 63%-72%. Around Rp 5-11 millions or more than 63% of household income of smallholder comes from the oil palm based activities. The oil palm related industries have had a significant contribution to household welfare in term of income and asset. The crop has a positive economic growth contribution as indicated by its growth in term of investment, output, and foreign exchange earning. Empirical studies show that the crop does have an important contribution on those aspects. In line with this need, this paper try to assess the contribution of oil palm based industry on economic growth, poverty alleviation, and equity improvement. Key sectors or commodities are urgently required as leading sectors/commodities to speed up the economic growth during Indonesia in economic recovery stages. ![]()
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December 2022
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