Indonesian Palm Oil Research Articles

A MODELLING FOR SUSTAINABLE OIL PALM DEVELOPMENT IN SOUTH HALMAHERA, INDONESIA: AN EVIDENCE FROM LOCAL COMMUNITY

Studies on sustainable development in Indonesia’s palm oil industry hardly focus on local communities. This study aimed to examine the indicators of Sustainable Development Goals (SDGs) using Indonesian Sustainable Palm Oil (ISPO) principles and criteria in a sustainability model. It was conducted in Gane Dalam, Jibubu, and Yamli villages in South Halmahera District, North Maluku Province using a sample of 200 respondents. Data were analysed using Structural Equation Modelling-Partial Least Squares (SEM-PLS). SDG indicators were found to have a positive and significant effect on ISPO. These indicators include poverty alleviation, food security, gender equality, income, the processing industry, infrastructure, and conflict resolution. Other indicators include company consistency, overlapping interests, efficient natural resource use, land rehabilitation and conservation, and animal protection. Additionally, the sustainable development model moves from the social to environmental development pillar, impacting Indonesian Sustainable Palm Oil standards and criteria.

Analisis Produksi Kelapa Sawit Indonesia

As the biggest producer in the world, trend of Indonesia palm oil production keeps increasing. Therefore, palm oil industry is favorite in Indonesia’s plantation sector and agriculture export. Besides having contribution on Indonesia GDP, palm oil industry also absorbs many labors. The objective of this research is to study the effects of micro and macro economics variables on the total palm oil production, crude palm oil and kernel palm oil. Using time series data 1986-2020 and non linear multiple regression model estimated using ordinary least square method, this research found that area, palm oil export and exchange rate has a positive significant effect, inflation rate and interest rate has a negative significant effect whereas palm oil import has no significant effect on the production of total palm ol, crude palm oil and kernel palm oil. Hence, besides maintaining the stability of exchange rate, inflation rate and the interest rate fluctuation, the government have to put some efforts to develop researches to increase the productivity of palm oil area.

INDONESIA’S PALM OIL EXPORT TO MALAYSIA AND THAILAND

<p class="MainHeading"><em>The economic recovery after the COVID-19 pandemic has significantly increased the demand for palm oil in Indonesia and globally. This study analyzes the regulation and valuation of palm oil trade between Indonesia and Malaysia and Thailand. In addition, the study focuses on Indonesia's exports to her two major countries in Southeast Asia. Based on prescriptive legal analysis, relevant stakeholders have enacted several new regulations to ensure the stability and availability of palm cooking oil. The Indonesian central government has enacted several new regulations related to palm cooking oil to ensure availability and affordability in the domestic market as well as to support exports abroad. A Structural Time Series Model (STSM) estimates that the trade value of Indonesian palm oil exports to Malaysia and Thailand will stabilize in 2022. Indonesia's export policy needs to take into account cyclical, seasonal and irregular patterns. Stakeholders should check for irregular factors such as 2020, 2021, the economic crisis, and the COVID-19 pandemic.</em><em> </em><em>Competent authorities must consider all aspects, especially international prices and palm oil exports, in order to implement best guidelines in a timely manner and to further review existing regulations. All palm oil stakeholders have adapted to the new regulations introduced by the government to ensure domestic supplies of palm cooking oil are available and affordable, and the remaining palm oil and its derivatives can be exported abroad.</em></p>

Plantation Life: Corporate Occupation in Indonesia's Oil Palm Zone

Plantation Life: Corporate Occupation in Indonesia's Oil Palm Zone

Governance Issues and Environmental Impacts of Oil Palm Plantations in Riau (A Green Criminology Overview)

Indonesia, as an agrarian country, has a wealth of natural resources that can be used to meet human needs, either directly or indirectly through economic activities. One of the initiatives done is through the growth of oil palm farms, which is increasing in pace with global demand. Riau Province owns the majority of Indonesia's oil palm plantation land. Palm oil is a significant commodity in Riau, and with first-rate production, Riau Province can be considered a national center for oil palm development. This article will discuss two major aspects of oil palm plantations in Riau. First, it is concerned with the multiple detrimental effects of oil palm plantations in Riau, both environmental and socioeconomic. Second, this study will discuss several concerns concerning the governance of oil palm plantations in Riau. This study employs qualitative research methodologies, with a literature review serving as the primary data collection method. In this study, the literature review refers to gathering information from multiple books, journal articles, regulations, and other supporting papers. A literature review is conducted to examine prior studies on environmental criminality, green criminology, oil palm plantations, and oil palm plantation management in Riau. Finally, three conclusions are proposed in this study. The first conclusion is about the conflicting laws and regulations. In Indonesia, laws in the form of exemptions or permits must seek rechtsbeginsel, which must be rational or logical. Based on the nature of the prior first difficulty, the second conclusion speaks to the nature of bureaucracy. Bureaucracy with a criminogenic nature allows for the growth of forms of power abuse and maladministration. Since this deviation can cause harm, it is classified as a crime. In this situation, there is both social and environmental harm. The third conclusion in this discussion is the vulnerability to abuse of power as a result of power distribution. As a result, especially in the context of the oil palm plantation crisis, the end of the fraud committed by private investors that should be rectified by the political elite will not be fixed: it will reoccur as a true result of terrible governance practices carried out compactly.

Global Dependence Analysis on Indonesian Palm Oil Production and Its Effect on Environmental Security Using the Copenhagen School Approach

Increasing international demand is related to global dependency on Indonesian palm oil, forcing Indonesia to increase its palm oil production, resulting in environmental concern. A combination of quantitative and qualitative methods with the Copenhagen School approach is used. On average from 2010-2020, Indonesia exported palm oil to Asia (64.72%), the EU (16.29%), Africa (13.59%), America (5.30%), and Oceania (0.07%). According to the Copenhagen School perspective, there are potential environmental security threats to the international world. One aspect of the environment that is suffering is forested due to deforestation, related fires, damage to ecosystems, and species that are essential contributors to global climate change and loss of biodiversity, as well as poor local and regional air quality. Involvement in the human rights sector, terrorist activities, smuggling, and tax evasion are also evident. Indonesian palm oil production provides economic benefits through international trade and at the same time threatens global environmental security.

Green resolution and resilience of palm oil exports in Indonesia: Strengthening local value chains

This study examines the scarcity of palm oil in Indonesia's CPO oil food commodity and the government's conservative steps through green resolution policies and strengthening local value chains. The validation of green economy resolution variable indicators in this study is green financing and local value chains in CPO exports as measured by product prices and production values. In addition to these variables, household consumption expenditure is the control variable used as a determining variable for CPO export levels. The research data uses data from the 2013Q1 to 2022Q4 time series. The research methodology describes the ARDL model for testing long-run effects and the ECM method for observing the economy's acceleration towards equilibrium during short-term shocks. The results showed that the long-term correlation between green financing resolution, product prices, and production value significantly affected the level of CPO exports at a significance level of 5% (p <0.05). However, the variable household consumption expenditure is not significant to the level of CPO exports in the long run at a significance of 5% (p <0.05). Then the short-term correlation shows that the green financing resolution variables, product prices, production values, and household consumption expenditures significantly affect the level of CPO exports at a significance of 5% (p <0.05).

The determinant, efficiency, and potential of Indonesian palm oil downstream export to the global market

Formulae display:?Mathematical formulae have been encoded as MathML and are displayed in this HTML version using MathJax in order to improve their display. Uncheck the box to turn MathJax off. This feature requires Javascript. Click on a formula to zoom.

Goal-Based Private Sustainability Governance and Its Paradoxes in the Indonesian Palm Oil Sector

In response to stakeholder pressure, companies increasingly make ambitious forward-looking sustainability commitments. They then draw on corporate policies with varying degrees of alignment to disseminate and enforce corresponding behavioral rules among their suppliers and business partners. This goal-based turn in private sustainability governance has important implications for its likely environmental and social outcomes. Drawing on paradox theory, this article uses a case study of zero-deforestation commitments in the Indonesian palm oil sector to argue that goal-based private sustainability governance’s characteristics set the stage for two types of paradoxes to emerge: performing paradoxes between environmental, social, and economic sustainability goals, and organizing paradoxes between cooperation and competition approaches. Companies’ responses to these paradoxes, in turn, can explain the lack of full goal attainment and differential rates of progress between actors. These results draw our attention to the complexities hidden behind governance through goal setting in the corporate space, and raise important questions about the viability of similar strategies such as science-based targets and net-zero goals.

The Analysis Effect of International Price, GDP, Land Area and Substitutional Price on Export Volume of Indonesian Palm Oil

The objective of this study is determine and analyse effect of international price, GDP, land area and substitutional price on export volume of Indonesian Palm Oil. The data that the authors use in this study are secondary data types in the form of a 33-year time series, starting in 1986-2018. Secondary data were obtained from the Central Bureau of Statistics, the Directorate General of Plantations, the World Bank, UN Comtrade, the IMF, the US Department of Agriculture, several literatures, and sites related to research. The data analysis that the authors used in this study was by using the Error Correction Model (ECM) method with the analysis tool used to process the data, namely eviews 8. In this study, the data were obtained by means of documentation, namely, data collection was carried out in the classification category of written data that related to research problems from various sources, including books, journals, and existing publication websites. The conclusion from this study is that the variable land area has a significant positive effect on the volume of Indonesian palm oil exports to India for the 1986–2018 period in the short and long term. This result is in accordance with the hypothesized hypothesis. International price variables have a significant negative effect on the volume of Indonesian palm oil exports to India for the 1986–2018 period in both the short and long terms.

Keragaman Genetik Varietas Kelapa Sawit (Elaeis guineensis Jacq.)

Oil palm (Elaeis guineensis Jacq.) is one of the leading national commodities because of its large contribution to the Indonesian national economy. In the plantation industry, palm oil is known as a commodity that has high value because it is an ingredient for producing palm oil. The genetic diversity of Indonesian oil palm accessions is currently very low. In an effort to increase genetic diversity, germplasm exploration has been carried out at the genetic diversity center of oil palm. In addition to exploration, other efforts have been made to increase genetic variation by introduction. Oil palm is a type of plant that comes from the Arecaceae family. Oil palm plants usually grow on peat soil types spread across the islands of Sumatra, Kalimantan and Sulawesi. This is a type of plant that has a fairly high level of risk of being attacked by pests. In its distribution, there are two types of oil palm that are usually cultivated by farmers, namely Elaeis guineensis Jacq., and Elaeis oleifera. Differences in properties can be seen from the morphology of the oil palm fruit endocarp ehich has different levels of thickness as a form of genetic diversity. Oil palm varieties are distinguished by the thickness of the endocarp, and also by the color of the fruit. Based on the thickness of the endocrap, oil palm is divided into three types, namely Pisifera, Dura, and Tenera. If based on the color of the fruit, there are Nigrescens, Virescens, and Albescens. One of the methods that can be used for genetic analysis is Random Amplified Polymorphic DNA (RAPD).Keywords: diversity, accession, endocarp, palm oil

The Urgency of Indonesian Sustainable Palm Oil Certification for Oil Palm Plantation Companies in the State's Economic Growth

The government is working on Indonesian Sustainable Palm Oil Plantations by issuing various regulations, both through the Presidential Regulation of the Republic of Indonesia Number 44 of 2020 concerning the Certification System for Indonesian Sustainable Palm Oil Plantations, as well as through the Regulation of the Minister of Agriculture Number 38 of 2020 concerning Implementation of Plantation Certification Indonesian Sustainable Palm Oil so that the oil palm plantation business obtains results that are economically feasible, socio-culturally feasible and environmentally friendly and increase the competitiveness of industrial palm oil products for the international market. The study method is normative juridical. In this study, an approach is used by identifying research objects and a statute approach. Based on the results of the study, the Government of Indonesia continues to make efforts for oil palm plantation companies to carry out ISPO certification. The government also issued various regulations to accelerate ISPO certification. It is suggested to the government continue to make efforts and be serious about accelerating ISPO certification by implementing various regulations that have been issued, including the Regulation of the Minister of Agriculture of the Republic of Indonesia Number 18 of 2021 concerning the Facilitation of Development of Community Gardens in Surroundings, in addition to issuing the Regulation of the Minister of Agriculture of the Republic of Indonesia Number 03 of the Year 2022 concerning Development of Human Resources, Research, and Development, Rejuvenation, as well as Facilities and Infrastructure for Oil Palm Plantations and several regions a Team for the Acceleration and Supervision of ISPO certification has been formed so that it has an impact on the country's economic growth.

Life cycle assessment for evaluating the energy balance of the multi-feedstock biodiesel production process in Indonesia

This study aims to compare the energy balance of the production of biodiesel from multiple feedstocks to the production of biodiesel from palm oil in Indonesia. The energy balance study indicates that the biodiesel multi-feedstock plant is feasible to operate. The renewability of biodiesel from multiple feedstocks is 3.31 and that of palm oil biodiesel is 6.23. It is due to the fact that the energy content and demand of multi-feedstock biodiesel are much lower than palm oil biodiesel. The energy content of biodiesel from multiple feedstocks (and its co-products) is less than that of biodiesel from palm oil (and its co-products), 109,041 MJ vs 130,370 MJ, respectively. The energy demands for the production of biodiesel from multiple feedstocks and biodiesel from palm oil are 35 × 103 MJ and 23 × 103 MJ, respectively. Energy demands, including fossil and biomass, are attributable to plantation operations, including the usage of fertilisers. Plantations of multiple crops use more energy than plantations of oil palm alone because they require more fertilisers. It is not suggested to produce multi-feedstock biodiesel from sunflower, canola, and soybean since its energy balance is not better than biodiesel from palm oil.

The Effect Of Implementation Of DMO And DPO On Indonesian Palm Oil Exports

This study aims to determine and analyze (1) the effect of Domestic Market Obligation, DMO, implementation and partial, Domestic Price Obligation, DPO, implementation on Indonesian palm oil exports and (2) the effect of simultaneous DMO implementation and DPO implementation on Indonesian palm oil exports. The results of the Pearson correlation test on the variables of DMO implementation and DPO implementation had a powerful/close relationship with palm oil exports. The regression test results, simultaneously with the F test and partially with the t-test, show that the implementation of DMO and the implementation of DPO have a significant effect on Palm Oil Exports.

Land Swap Option for Sustainable Production of Oil Palm Plantations in Kalimantan, Indonesia

Indonesia is the largest producer of palm oil; it is essential to manage its palm oil industry in a sustainable manner through swapping the oil palm plantation in peatland to mineral soil to reduce the greenhouse gas emissions. This study employed the latest spatial data using the ArcGIS software to analyze the potential area for the land swap option and to calculate the potential reduction in greenhouse gas emissions in Kalimantan, Indonesia. There are 1.08 million ha of oil palm in peatland, while 0.64 million ha of the area in mineral soil under the convertible production forest have the potential for land swapping. Via the land-swap option, emission reductions of 65.43% (from 979.05 MtCO2eq to 336.64 MtCO2eq) for the calculation period of 25 years and up to 61.19% (from 2147.81 MtCO2eq to 833.67 MtCO2eq) for that of 50 years is possible compared to the initial condition. The land swap will also increase the production of fresh fruit bunch (FFB) by 17.16% per year because the productivity of FFB in mineral soil is higher than that of the peatland. Considering that land swaps are costly, policymakers and stakeholders must collaborate to execute the land-swap option for the sustainability of Indonesian palm oil.

Determination Analysis of Indonesian Palm Oil Commodities in the Covid-19 Pandemic Era on Indonesian Per Capita Gdp and Export Tax Revenues

Background: The fundamental problem faced in the process of economictransformation in Indonesia is that the GDP growth of the agricultural andplantation sectors is still relatively low and the contribution of tax revenuefrom exports has not been optimal, especially in the midst of the Covid-19pandemic era.Aim: The data is compiled in the form of panel data consisting of 10provinces producing the largest production of palm oil in Indonesia and witha time series of research period 2012-2021. The research model wasformulated as a linear model and analyzed recursively using linearregression using the ordinary least squares method (OLS).Method: This study uses the explanatory method to explain the causalrelationship in Indonesia's GDP growth model per capita and Indonesia'sexport tax revenue through hypothesis testing.Findings: The research findings are that production, selling prices,exchange rates, and exports have a simultaneous effect on Indonesia's GDPper capita and export tax revenues. In part, Indonesia's GDP per capita ismore determined by production, selling prices, and exchange rates.Meanwhile, some export tax revenues are more influenced by production andselling prices

Determination Analysis of Indonesian Palm Oil Commodities in the Covid-19 Pandemic Era on Indonesian Per Capita Gdp and Export Tax Revenues

Background: The fundamental problem faced in the process of economictransformation in Indonesia is that the GDP growth of the agricultural andplantation sectors is still relatively low and the contribution of tax revenuefrom exports has not been optimal, especially in the midst of the Covid-19pandemic era.Aim: The data is compiled in the form of panel data consisting of 10provinces producing the largest production of palm oil in Indonesia and witha time series of research period 2012-2021. The research model wasformulated as a linear model and analyzed recursively using linearregression using the ordinary least squares method (OLS).Method: This study uses the explanatory method to explain the causalrelationship in Indonesia's GDP growth model per capita and Indonesia'sexport tax revenue through hypothesis testing.Findings: The research findings are that production, selling prices,exchange rates, and exports have a simultaneous effect on Indonesia's GDPper capita and export tax revenues. In part, Indonesia's GDP per capita ismore determined by production, selling prices, and exchange rates.Meanwhile, some export tax revenues are more influenced by production andselling prices

Developing The Competitiveness Model of The Palm Oil-Based Fatty Acid and Fatty Alcohol Industry in Indonesia Using Porter’s Diamond Cluster Competitiveness Model

The definition of oleochemicals is a source of chemicals made from natural oils or fats, derived from animals or plants. Oleochemicals derived from palm oil are fatty alchohols and acid which are currently widely used. The purpose of this research is to develop model of diamond clusters from Porter to see the competitiveness of industries based on fatty acids and fatty alcohols derived from palm oil in Indonesia. From this research, data is generated showing that based on the model used, namely the industrial competitiveness model, there are several sub-factors with "good" status and other sub-factors with "bad" status. In shaping the competitiveness of the palm oil-based fatty acid and fatty alcohol industry in Indonesia, the “good” sub-factor is used. while the weakness that comes from the "bad" sub-factor can reduce the competitiveness of the palm oil-based fatty acid and alcohol, so it is necessary to maximize the good sub-factors.

Improving performance of independent smallholders towards the principles of Indonesian Sustainable Palm Oil Certification in Riau Province: prospective scenario approach

Certification is increasingly important to ensure sustainability. However, certification is a challenge for palm oil farmers. This study aimed to: 1) evaluate the application of Indonesian Sustainable Palm Oil (ISPO) standards by independent smallholders; 2) analyse the lever attributes; 3) formulate strategies for successful ISPO implementation. This research applied survey method towards 270 independent farmers and key respondents. Data analysis was performed descriptively and by prospective analysis. The results showed that the application of ISPO indicators by independent smallholders is still low and there are many indicators that have not been applied. The critical determinants of the implementation of ISPO are the benefits of ISPO, guidance, documentation, financial assistance, partnerships, stakeholder roles, human resources, and legal certainty. The best strategy to implement the ISPO standard is through synergy between the government and stakeholders in terms of government policies that support the enhancement of human resource capabilities, capital capabilities, farm management capabilities and marketing capabilities.

The effectiveness of acid-tolerant antagonists in the control of oil palms root necrotic caused by Ganoderma sp. in peat soils

Oil palm is the main plantation commodity in Indonesia. In the last two decades, Indonesian palm oil has always been associated with global warming because most of its plantation areas are located on peatlands and the cultivation method is considered not environmentally friendly. One of the problems of oil palm cultivation on peatlands is stem rot disease caused by the fungi Ganoderma sp. This disease is transmitted through root contact. There is no effective way to control this disease. Biological control is an alternative method that is environmentally friendly. This study aims to determine the effectiveness of acid-tolerant antagonists in controlling oil palm root necrotic on peat soils. The study tested 5 isolates of the acid-tolerant antagonists in reducing oil palm root necrosis caused by Ganoderma on peat soils in experimental gardens. The results showed that the acid-tolerant antagonists were effective in controlling root necrosis in oil palm seedlings on peat soils. Its effectiveness reached 16.67%. Differences in peat soil pH and peat maturity did not affect the effectiveness of root necrotic control caused by Ganoderma sp. These results indicate that using acid-tolerant antagonistic fungi can help reduce Ganoderma sp attacks on oil palms on peat soils.