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This study aims to test the economic value chain of the palm oil industry in North Sumatra and the contribution to economic growth. This research type is explanatory survey with quantitative method. The data used is secondary data. Population and sample used are trade value and economic turnover in Rupiah and Dollar amount to economic growth of North Sumatera Province. The analysis used with statistical tool Structural Equation Modeling. The results show the palm oil industry has a large economic value chain and contributes to the economic growth of North Sumatra Province.

Economic Value of Palm Plantation in North Sumatera and Contribution to Product Domestic Regional Bruto