JOURNAL MONITOR VOL.2 NO.17 THE CONTRIBUTION OF PALM OIL INDUSTRY IN GLOBAL POVERTY ALLEVIATION
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In the global development platform, Sustainable Development Goals (SDGs), there are SDGs-1 (No Poverty). This show that global poverty is still a global problem. Globally, the poverty rate in 2020 still reaches 9.4 percent or around 733 thousand people living below the poverty line. Therefore, global stakeholders are still struggling to find solutions to overcome poverty, one of which is through the development of economic activities that have an impact on improving the economy of poor.
The palm oil industry is considered becomes a solution to help reducing the global poverty through three pathways, i.e the plantation, the downstream palm oil in importer countries, and the consumption.
Various studies showed that the development of oil palm plantations in the producer countries (1st pathway) can significantly contribute to reducing poverty (poverty alleviation). Meanwhile, downstream palm oil in the importer countries (2nd pathway) also has an important role in reducing poverty through job creation and income-generating. Meanwhile, through consumption (3rd path), palm oil is affordable edible oil for the poor due to lower prices. In addition, palm oil becomes a buffer that can prevent the price of soybean oil, rapeseed oil, and sunflower seed oil, so that the poor can consume these vegetable oils.