Palm Oil: Global Potential of Indonesia PART 1

 

Amid pessimism Indonesian nation against nation advantages before other nations , Indonesia proved to have excellent potential to be proud of in terms of plantations , namely palm oil . This potential can be great opportunities for trade and investment , investors both domestic and international investors . However, this has a great potential threat and a number of problems that must be solved together .Potential of Oil PalmCurrently, Indonesia is a producer of crude palm oil ( crude palm oil , CPO ) in the world . In 2012, the plantation area is estimated at 9 million hectares , with a production of 24 million tons of CPO per year , with a composition of 5 million tons consumed domestically , while the remaining 80% in exports .The palm oil industry developed very inappropriate because it creates about 4 million employment opportunities ( pro -job ) , as well as supporting regional development and poverty alleviation , especially in rural areas outside Java ( pro-poor ) . In addition , the majority of planted oil palm plantations in forest concessions left-over/bekas ( pro -environment) , the breakup value of exports of CPO and palm oil products contribute significantly to export earnings , which is about USD 20 billion ( about 10 % of total export earnings ) , the second largest after the oil and gas ( pro - growth) .CPO is used as raw material for the food industry by 80-85 % and 15-20 % for non-food industry . Growth in domestic consumption of palm oil is about 5.5 % / year .The palm oil industry has good prospects as competitive as the edible oil industry . Palm is one of the most competitive source in the world for biofuels , and the technical applications and the most important is as a food source .Development of palm oil products derived from primary products , namely palm oil and palm kernel oil , and by-products derived from waste . Some of the products produced from them is the development of oil palm cooking oil , oleochemical products such as fatty acids , fatty alcohols , glycerine , metallic soap , stearic acid , methyl ester , and stearin . The development of basic oleochemical industry stimulate the growth of consumer goods industries such as detergent , soap and cosmetics .While the products resulting from the utilization of such waste is organic fertilizer , compost and potassium and fiber derived from oil palm empty fruit bunches , activated charcoal from coconut shell fruit , paper pulp originating from the trunk and palm bunches , furniture and particle board from the trunk , and animal feed from the stem and midrib , as well as organic fertilizer of liquid waste from palm oil production process .It is estimated that by 2030 it will take more food production to feed a growing world population . Based on conservative calculations , the year that the world will consume over 48 million MT of oil for food use , so it takes an increase of 30 million MT which should be fulfilled within 20 years . Indonesia should be able to play a major role in capturing these opportunities .