Hoax 8 : The Income of Oil Palm Farmers is Only Slightly Above The Rural Poverty Line and is Not Sustainable.
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Is the export of Indonesian Palm Oil is not important for the national economy?
Oil palm farmers enjoy per capita incomes substantially above the rural poverty line (see table below). In 2016, for example, the poverty line stood at Rp 4 million per capita/year. The income of oil palm farmers (per 2 hectares with an average family of four) reached Rp 10.5 million per capita/year or Rp 42 million per family/2 hectares/year. The income of oil palm farmers is not only far above the poverty line in villages and towns, but it has also grown faster. The income of both plasma farmers and self-help farmers approximately doubled in the period 2009-2016.
In the Indonesian economy, the non-oil sector (including the palm oil industry) is the mainstay for generating foreign exchange. From 2008 to 2016 (see the table below) the value of net exports of non-oil and gas sector fluctuated, but it maintained a surplus.
Table : Comparison of the incomes of oil palm farmers and poverty line (million rupiah/capita/year)
|Year||Poverty Line1||Average Income of Oil Palm Farmers 2|
In addition, the income of the oil palm farmers is sustainable. The income of oil palm farmers is not from seasonal agricultural activities such as food crop farmers whose income can fluctuate every season. The income of oil palm farmers is relatively stable and even tends to increase along with the growing age of the oil palm plantation. Also, the plantation is guaranteed for up to 25 years. With such sources and income patterns, the oil palm farmers can guarantee the welfare of their family members, especially the education of their children.