Aceh Palm Oil: Big Contribution to National Economy

Oil palm plantations are one of the primary economic pillars of the agricultural sector in Aceh Province, particularly on the east-north and west-south coasts. Spanning hundreds of thousands of hectares, the industry—encompassing smallholder farms and private estates—produces millions of tons of Crude Palm Oil (CPO) annually. Palm oil serves as a major source of employment for hundreds of thousands of rural farming families in Aceh and contributes the largest share to the province's plantation sector Gross Regional Domestic Product (GRDP).

Despite its massive economic contribution, the development of the palm oil industry in Aceh is shifting toward sustainability principles (*sustainable palm oil*). The local government collaborates with global NGOs to implement Indonesian Sustainable Palm Oil (ISPO) and Roundtable on Sustainable Palm Oil (RSPO) certifications. The goal is to ensure that palm oil expansion does not encroach upon protected primary forest habitats within the Leuser Ecosystem (*zero deforestation policy*) and mitigates land conflicts.

Downstream palm oil industrialization is continuously promoted by encouraging investments in local cooking oil refineries, oleochemical plants, and processing palm waste into renewable energy (*biomass* and *biogas*). Through downstream processing, Aceh aims to transition from exporting crude CPO to exporting high-value derivative products, boosting regional revenues sustainably and independently.

Location & Address: Plantation centers in East Aceh, Nagan Raya, Aceh Singkil, Aceh Tamiang, and West Aceh, Aceh Province, Indonesia. Google Maps

References & Sources: 1. Plantation Office of Aceh Province. (2022). *Statistical Data Catalog on Palm Oil and Regional Top Commodities*. 2. Sustainable Palm Oil Forum of Aceh (FKSBA). (2021). *Roadmap for Deforestation-Free Sustainable Palm Oil in Aceh*. 3. CPO Downstream Value-Added Analysis, Syiah Kuala University. (2020).