Essay On Palm Oil Indonesia

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Palm Oil Controversy in Indonesia
In the land of disappearing trees, Indonesia is wasting no time in expanding the palm oil market in light of high global demand. Not only can it be used in food, cosmetics and even biofuel, but it also has a longer shelf life than most vegetable oils, and is also the most productive seed; one hectare of palm oil plantations can reap a whopping 5000kg worth of Crude Palm Oil (CPO) (Butler, 2006). As a result, Indonesia, drawn in by the booming palm oil market, aims to increase production to 40 million tonnes of CPO per year by 2020 as global demand is projected to be 60 million tonnes by the same year (World Growth, 2011). However, the process of expanding the industry at such a large scale calls for global
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Clearing land for palm oil companies earns them some remuneration, apart from the additional revenue gained from the logged trees. Beisdes creating space for plantations, the cleared land also aids in bringing modern technology including electricity to the rural villages, since the network of the country has widened through the building of roads and buildings. Thus, these villages are able to break out of the poverty cycle with more money and better access and hence regulations that prevent palm oil expansion serves as a hindrance to the breaking of the poverty cycle. However, better access and a source of income is not enough to help the country move towards a developed one. It must be recognised that the focus on the natural resource sector of the country diverts labour away from the manufacturing sector. This situation is also amplified with the lack of education to allow the poor to gain skills that would aid them in getting better jobs with better remunerations. Without heterogeneity in the country, Indonesia will remain in the same poverty cycle without progressing towards a globalised
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