InfoSAWIT, JAKARTA - The palm oil plantations are the biggest exchange providers in non-oil and gas sector. According to Ministry of Agriculture, Indonesia succeeded to export 27,3 million tons in 2017 reaching about US$ 22,97. The exports increased 26% compared to 2016 that reached US$ 18,22. This automatically increased the exchange too.

Besides the plantation could reduce the joblessness around palm oil plantation centers in Indonesia.

Though the plantations have the superiority but they have low productivity level and may not surpass the neighbourhood country, Malaysia. The country is the second biggest producer after Indonesia and Malaysia itself once learned to do palm oil plantation business from Indonesia. 

The smallholders’ productivity could be about 2 to 3 tons of CPO per hectare per year while the private companies could be about 3 – 4 tons of CPO per hectare per year. If the plantations are cultivate well, the productivity could be increased more up to 8 tons of CPO per hectare per year, both in the smallholders’ and the private companies. Actually the potential CPO and CPKO could be 12 tons per hectare per year.

If the palm oil plantations in Indonesia are seen from index of Revealed Comparative Advantage (RCA), the numbers are 0,98, while Malaysia gets 1,04. It is normal if Malaysia has better productivity than Indonesia has. Malaysia could increase the competitiveness compared to Indonesia. (Etika Larasati – Majoring Agribusiness, Faculty of Agriculture, 2015,  Universitas Padjadjaran)

The complete article could be read in InfoSAWIT, November 2018