“Pine Resin Industry Shutdowns Deepen Economic Woes in Gayo Lues”

INSET GALUS NEWS

- Redaksi

Jumat, 27 Juni 2025 - 13:08 WIB

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TAJUK RENCANA | insetgalusnews.com |

The temporary closure of pine resin processing factories in Gayo Lues has dealt a heavy blow to the local economy, which heavily depends on this sector. Amid declining public purchasing power and growing economic pressure, this sealing policy risks deepening the crisis faced by the community.

The pine resin industry is not only the primary source of livelihood for thousands of residents, but also the driving force behind the local economic engine. Data collected shows that each resin processing company involves at least 200 people – ranging from suppliers, collectors, tappers, transporters to loading and unloading laborers.

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Typically, one supplier network includes an average of 17 collectors, with each collector employing up to 50 workers. A single company usually works with dozens of suppliers. This means that hundreds of households are directly dependent on the continuity of this industry.

The domino effect of these closures cannot be taken lightly. When factory operations cease, so does the circulation of money in the community, which has so far come from the resin trade. Farmers lose income, collectors stop buying, tappers no longer go into the forest, and transporters and laborers lose their jobs. Markets and other informal sectors are also affected as people’s purchasing power continues to weaken.

Local and provincial governments must act swiftly. If the closures were made on legal or permit-related grounds, mediation and expedited administrative resolutions should be prioritized to allow production to resume. Shutdowns without solutions will only deepen social inequality and increase poverty levels.

Gayo Lues needs economic certainty. The pine resin industry has proven to be the backbone of the community. Mishandling this situation with insensitivity to field conditions will only worsen the looming crisis.

Policy evaluation must be based on social data, not merely administrative documents. A good policy is one that sides with the people – not one that silences them.


Editorial | insetgalusnews.com |

delivers critical and accurate information based on the current developments in Gayo Lues Regency, intended to be read by the wider Indonesian public to broaden knowledge, serve as social control, and provide the right of reply to any institution, individual, or organization mentioned by the editorial.

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