Palm Oil Contributions are not Directly Proportional to Regional Economic Growth
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Massive expansion of palm oil plantations does not automatically lead to regional economic growth. This is evident when considering the five Indonesian provinces with the largest increase in planted palm oil area (2011-2017).
Comparing the Gross Regional Domestic Product (GRDP) of the plantation sector in these five provinces to the total GRDP reveals that growth is not directly proportional. Only Riau and East Kalimantan show an upward trend in their plantation GRDP relative to the increase in palm oil land.
In North Sumatra, although there is an increasing trend, the figures are arguably stagnant. In West Kalimantan and Central Kalimantan, the percentage contribution of plantation GRDP even shows a decline.
This comparison indicates that the addition of land for palm oil plantations cannot be automatically considered to make a significant contribution to regional economic growth.
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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