Plantation is Still a Mainstay

If Java Island is a paradise for food crop commodities, then Sumatra Island is a paradise for plantations.

Actually, the sentence is not an exaggeration to describe the topographical conditions in Indonesia. The island of Java has always been known as a granary for food crops, especially rice nationally. More than half of the national rice production or 56 percent is produced in Java, with a total of 30.7 tons of milled dry rice (GKG) in 2021. This is in line with the large harvest area.

The cluster analysis (grouping) of rice production potential in Indonesia by researchers shows that Central Java, West Java, and East Java are in the same group, namely the group with the largest rice production potential. BPS answered the same thing through the results of its official release in early March. East Java, Central Java, and West Java in 2021 are the three provinces with the highest potential for rice production (GKG) from January to April 2021. When it comes to plantations, the island of Sumatra takes the leading role. The potential for plantations on the island of Sumatra is indeed very dominating. BPS data for 2021 shows that the largest production of plantation commodities, including oil palm, rubber, coconut, coffee and areca nut is on the island of Sumatra.

Around 53 percent of national palm oil production is produced on the island of Sumatra, which is 24.4 million tons in 2021. The provincial rubber production in Sumatra is 2.2 million tons or 70 percent nationally, coconut 722 thousand tons or 25 percent, and coffee 374 thousand tons or 48 percent. Jambi, which is part of the island of Sumatra, contributes greatly to plantation commodities. Palm oil production in Jambi ranks fourth on the island of Sumatra, which is 2.6 million tons in 2021. Production of rubber is 310 thousand tons, coconut is 116 thousand tons, and coffee is 20 thousand tons in 2021. Plantation is a strategic commodity in Jambi Province. The contribution of plantations to Jambi's GDP is recorded at 21.3 percent in 2021 or worth 50 trillion rupiah, which is the largest contributor to the formation of value-added business fields. Palm oil is one of the plantation commodities that has an important role in the economy, because of its ability to produce vegetable oil which is much needed by the industrial sector. The percentage of vegetable oil exports from January to June 2022 in Jambi was 11 percent or the fourth largest after oil and gas (oil and gas), processed rubber, and coal. Its value reached 38 million dollars in June 2022. Another plantation commodity, namely rubber, also has a large share in Jambi's main export product. The volume of rubber exports during 2021 is 285 thousand tons or US$ 485 million. Likewise areca nut, its increasingly strategic role in Jambi's exports has made it one of the prima donnas. The export volume of areca nut during 2021 is 81 thousand tons, with a value of 142 million US$.

When viewed from its production, coconut is the third strategic plantation commodity in Jambi, especially in Tanjung Jabung Timur and Tanjung Jabung Barat Regencies. Likewise, Jambi coffee, which is known for its different flavors from arabica (Kerinci), robusta (Merangin), and liberika (East Tanjab and West Tanjab), has pushed Jambi coffee to become more global.

Seeing the strategic importance of plantation commodities in Jambi's economy made it a government concern and program. The fluctuating prices of palm, rubber, and areca nut should be the main program of the local government, especially so that prices are controlled, so that the welfare of the community also improves. Increase plantation productivity through the use of technology and agricultural innovations, including the use of superior seeds, cultivation techniques, fertilization, and so on. In addition, it is necessary to increase exports and competitiveness through the use of technology and marketing innovations, for example through tourism promotion and social media, as well as through government policies (regulations). In addition, the most important thing is that the downstream plantation products promoted by the government should be realized immediately. May our farmers be more prosperous. (Jambi/Production Data)