JOURNAL MONITOR VOL.2 NO.20 OIL PALM PLANTATIONS RESTORES DEGRADED LAND INTO A NEW ECONOMIC GROWTH CENTER
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The development of oil palm plantations can be categorized as a pioneer in economic activity because it can convert degraded land located in remote and underdeveloped areas such ex-logging areas into an economic engine that produces an “economic cake” that is enjoyed by the surrounding community.
Not only that, the development of oil palm plantations by corporations (state and private) and smallholders (plasma and independent) can encourage the growth of the supporting service sector, such as transportation services, financial services/banking, goods supplier services/office services, food trade services, food shops/ restaurants, inter-city trade services, and others. Their economic activities are capable of developing agropolitan area that becomes the new economic growth center.
Apart from being a pioneer in new economic growth in degraded land areas, oil palm plantations are also able to play a role in increasing farmer’s income and regional economic growth (GDRP). The implication is being able to transform degraded land which is a source of poverty into a locomotive for reducing rural and urban poverty.