InfoSAWIT, JAKARTA - Palm oil plantations develop fast in Indonesia. The golden commodity contributes much in agro-industry. That is why it needs to develop its downstream industries according to Visi Hilirisasi 20245
Until now there have been 2.511 palm oil plantation companies in Indonesia in 26 provinces. Their production capacity reached 84,8 million tons within the utilization about 55% that produced 47 million tons of crude palm oil (CPO).
“Indonesia is the number one palm oil producer in the world within its markets 55% in the globe,” Policy Analysis of Associate Coordinator Ministry in Economy, Khadikin said in Focus Group Discussion (FGD) SAWIT BERKELANJUTAN VOL. 14, with the theme “Mengintegrasikan Industri Hulu Hingga Hilir Sawit Berkelanjutan”, that InfoSAWIT conducted with the supports from Palm Oil Plantation Fund Management Agency (PFMA), in the early of June in Jakarta.
He also said, about 60% palm oil products in Indonesia were for the exports, which means, Indonesia contributed to provide consumption goods, food, and energy for the world. With the prediction of the world population about 9,8 billion in 2050, the crowd people in urbans, as it is predicted, would get additional needs on vegetable oil up to 200 million tons in the future. Palm oil can supply the numbers because it is the most efficient and productive vegetable oil of all.
Within average production 5 tons per hectare, palm oil plantations can be planted in a four million - hectare of agricultural areas, save hundreds million areas to plant other needs (commodities). Khadikin also said, plantation industries play important roles for agro – industries. In the first semester of 2022, of the total agro-industries export that reached US$ 25,12 billion, 56,6% were dominated by plantation industries.
Until now palm oil commodity (and palm cooking oil) are the main export products from Indonesia, concerning that Indonesia is the biggest palm oil producer in the world. “Palm oil should be the role model of downstream industry that could reinforce additional value – exports from the processing business in this country,” Khadikin said.
In 2011, for instance, there were 54 derivative products that were produced but after one decade, in 2021, palm oil downstream industries could produce 168 products.
Not only that the material export ratio in CPO – base started decreasing. If in 2020 it reached 60% of CPO material – base and 40% material in downstream – base, in 2021, about 91% were downstream products to export and only 9% were materials to export.
“That is why the 2030 target is that downstream products could be more than 168 kinds,” he said. (T2)
Source: Majalah InfoSAWIT, June 2023
