Indonesian Palm Research Articles

HUMAN RIGHTS VIOLATIONS AGAINST OIL PALM PLANTATION WORKERS IN WEST KALIMANTAN REGION

<p>Indonesia, a leading palm oil producer, faces a dilemma between the palm oil sector's positive economic contribution and its negative impact on labor rights. Despite creating jobs and economic growth, the sector is often associated with rights violations such as corruption, job insecurity, low wages, forced labor, occupational safety, child labor, and social security. Case studies in West Kalimantan and Central Sulawesi highlight the issues that need to be addressed to strike a balance between economic development and human rights protection in Indonesia's palm oil sector.</p><p> </p><p>Keywords: Human Rights, Plantation Labor, Oil Palm, Worker</p>

Improving Performance of Independent Smallholders towards the Principles of Indonesian Sustainable Palm Oil (ISPO) Certification in Riau Province: Prospective Scenario Approach

Improving Performance of Independent Smallholders towards the Principles of Indonesian Sustainable Palm Oil (ISPO) Certification in Riau Province: Prospective Scenario Approach

ANALYSIS DETERMINANTS OF INDONESIAN PALM OIL EXPORT VOLUME TO TEN MAJOR DESTINATION COUNTRIES

This research is entitled Analysis of Determinants of Indonesian Palm Oil Export Volume to Ten Major Destination Countries. Economic growth also varies among these countries. India's economy grew steadily with an average annual growth rate of 5.2%, which is likely to increase its demand for palm oil. China's economy, despite a slight decline in 2020 due to COVID-19, rebounded with an average annual growth of 3.9%. This study aims to analyze the determinants of Indonesia's palm oil export volume to ten major destination countries during the period 2012-2022 using a descriptive quantitative approach with panel data that combines time series data and cross-sectional data. Secondary data was obtained from various sources such as BPS, Investing.com, World Bank, and Macrotrends. The analysis method used includes panel data regression with the selection of the best model through Chow and Hausman tests, as well as classical assumption tests and goodness of fit tests. The results show that the international price of palm oil has a positive effect on export volume, while the exchange rate, economic growth of importing countries, and inflation in Indonesia have a negative effect. Overall, these economic variables have a significant effect on Indonesia's palm oil export performance. This study model indicates that the independent variables (international prices, exchange rate, economic growth, and inflation) collectively explain 94.10% of the variation in Indonesian palm oil export volume. This indicates that these economic factors exert a strong influence on the performance of Indonesian palm oil exports.

Ekspor CPO (Crude Palm Oil) Indonesia Ke India Dengan Analisis Model Gravity

The agricultural sector is one of the sectors that takes a role in international trade. Exports are one way to increase state revenues and in turn can stimulate an increase in Gross Domestic Product (GDP). Exports are the most important part that must be considered for the achievement of sustainable economic development. In this case the progress of the export of a country that has no constraints will benefit the country itself. One of Indonesia's mainstay export commodities is palm oil (CPO). India is the main destination country for Indonesian CPO exports. The consumption of vegetable oils in India has increased over the past two decades as populations grow, incomes increase, and restaurants have sprung up to cater to crowds who start eating out more often. The Indian state's vegetable oil imports have soared to 15 million tonnes from 4 million just two decades ago, but imports fell in 2019/20 and 2020/21 after pandemic-related lockdowns that swept the world. The study aims to describe Indonesia's palm oil exports to India and to determine the factors affecting Indonesia's palm oil exports to India. This research was conducted in the destination country of Indonesia's palm oil (CPO) export to India, with the data collection time from 1992 to 2020. The palm oil commodity in this study is based on the harmonized system (HS) 151190010 published by the United Nations Commission trade (UN Comtrade). The method used in this study is time series analysis using a gravity model approach. The results of the analysis using the gravity method show that GDP per capita in Indonesia is based on constant prices, GDP per capita in India is based on constant prices, Indian tariffs and economic distance have a significant effect on the value of Indonesia's CPO exports to India.

‘Complexation’ of Palm Oil in Indonesia: The Actors and Their Involvement in North Mamuju, West Sulawesi

This research examines the complexity of many significant changes in Indonesia's palm oil (PO) industry in North Mamuju, West Sulawesi, focusing on the actors' involvement. The PO commerce in this country continues to grow due to the increasing demand for crude palm oil (CPO) and kernel palm oil (KPO), low labor costs, vast lands, tropical climate, soil conditions, as well as domestic and global demand. Furthermore, private firms and smallholders continue to dominate the OP sector with continuous growth from upstream to downstream. This suggested that the PO industry has substantially impacted and helped change the newly constituted district of West Sulawesi, North Mamuju, by applying ethnographical modes of inquiry. According to the actors, the complexity of PO industry in this region is simply driven by the dynamics of the frontier inside and beyond PO plantations zona. Secondly, they are committed to ensuring that the region continues to be a center of PO industry to stimulate economic development in Sulawesi. Empirically, investment requirements and community attractiveness to PO continue to persuade local governments that the sector is the only development path. Local actors envision North Mamuju as the future hub for PO farmers in the East Indonesian region.

Market Share Analysis and Export Performance of Indonesian Crude Palm Oil in the EU Market

This study aims to analyze the market share and export performance of Indonesian Crude Palm Oil (CPO) to the European Union Market, using time series data (2000 – 2020). The Market Share Index is used to assess the condition of the Indonesian CPO market in export destination countries when compared to its competitors (Malaysia). Analysis of the performance of CPO products in the European Union market using the Constant Market Share (CMS) approach. The results show that the average growth of Indonesia's export standards to Europe is 0.1526, indicating that Indonesia is able to take advantage of CPO export opportunities. Indonesia has been able to meet CPO product specification standards in importing countries, including the Roundtable Sustainable Palm Oil (RSPO) and Hazard Analysis and Critical Control Points (HACCP) certifications as standards for safety and consumer protection. Indonesian CPO is well positioned in Spain (0.000244) and Italy (0.00014), and less well positioned in the Netherlands and Germany. Indonesia does not have good competitiveness against CPO exports in the European Union market, which causes Indonesia to shift the Asian market as the target market for Indonesian CPO.

Analisis faktor-faktor yang mempengaruhi ekspor minyak kelapa sawit Indonesia ke Uni Eropa

The objectives of this study are 1) to know and analyze the contribution of the Volume of palm oil exports to the European Union to the total exports of Indonesian palm oil in 2000-2019. 2) to analyze the effect of production, CPO prices, exchange rates, and EU policies on the Volume of Indonesian palm oil exports to the European Union in 2000-2019 and 3) to describe the EU's policies on Indonesian palm oil exports. The model used in this study is a multiple linear regression model. The t-test results show that partially the production, CPO price, exchange rate, and EU policy affect Indonesian palm oil exports to the European Union. The policy set by the European Union for Indonesia's palm oil exports is the Renewable Energy Directive (RED) policy which limits the export of palm oil-based biofuels and the imposition of tariffs on Indonesia's biodiesel exports to the European Union.

Political Economy and Global Trade Influences and Scenarios to Increase Indonesia's Palm Oil Sustainability: An Evidence-Based Structural Equation Modeling Approach

Political Economy and Global Trade Influences and Scenarios to Increase Indonesia's Palm Oil Sustainability: An Evidence-Based Structural Equation Modeling Approach

Impact of the ‘Brussels Effect’ on Indonesian Palm Oil Exports to the European Union

Even though the EU may lack sufficient coercive economic and military power, it is considered to be one of the "regulatory powers" of the world with the capacity to export its laws and regulations outside its frontier. However, this exercise of regulatory power has resulted in conflicts with other nations around the world as it could directly affect other nations' trade, most notably Indonesia's palm oil exports to the EU. This study examines the effect of the EU's regulatory powers (i.e., the 'Brussels effect') on Indonesia's palm oil export to the EU. This study uses a comparative and descriptive approach by comparing Indonesia's palm oil exports to the EU and charting the amount and dollar value of palm oil exports from Indonesia to the EU from the year 2013 until 2019. This article finds that the Brussels effect has reduced 42% of Indonesian palm oil exports to the EU in 2016, compared to the previous year. In spite of this, the total volume of Indonesia's palm oil export remains relatively unaffected, although the dollar value has not yet recovered due to the fluctuating nature of crude palm oil prices.

The Impact of Sustainable Certification on Financial and Market Performance: Evidence from Indonesian Palm Oil Companies

The palm oil industry is a strategic sector that plays an important role for national economics. Although the palm oil industry's role and contribution are high, land clearing and operation are often associated with environmental and social issues. The sustainable certification was then developed to ensure that palm oil companies can continue to operate without involving environmental and social deprivation. The previous research related to the impact of a sustainable certification found several positive and negative impacts on palm oil companies' performance in general. Therefore, this study aimed to determine the impact of sustainable certification on Indonesia's palm oil companies' financial and market performance. This research focused on 14 palm oil companies in Indonesia that went public with an observation year between 2014 and 2019. Analysis through panel regression found that sustainable certification has no impact on Indonesia's palm oil companies' financial and market performance. The study could be a recommendation and justification for palm oil companies for consider to take a sustainable certification.

PERFORMA KOMODITAS MINYAK SAWIT INDONESIA DI TATARAN GLOBAL: MAMPUKAH KITA MENJADI PEMAIN KUNCI?

Palm oil is important Indonesia's export commodities. Amidst the strong position, Indonesia's palm oil exports face many challenges. This study aims to identify the performance of Indonesian palm oil compared to competing countries, the competitiveness, the market position, and the potential development of the commodity in several major trading partners. The results of Revealed Comparative Advantage and Trade Specialization Index calculations show that Indonesia's comparative competitiveness is the highest among other major exporters or producers, and Indonesia's exports are at the maturity stage. Regarding Market Position Matrix and X-Model of Potential Export Products Clusterization, the Indonesian palm oil markets in India, China, and the USA are rising stars and optimistic about developing. Meanwhile, in Pakistan and Malaysia, Indonesia experienced a lost opportunity, and the Spanish market was in a falling position but still had the potential to be improved due to the high competitiveness of the product. On the other hand, in Netherlands and Italy, it experienced a retreat, allegedly due to negative sentiment towards palm oil as the cause of various environmental destruction.

PATTERNS OF CHEMICAL CONTROL OF WEEDS ON DISC ON PRODUCTION AND RAINFALL AND RAIN DAYS AT KUALA PESILAM GARDEN GARDEN ELEPHANT HALL DIVISION I PT. BAHRUNY

This final project research was conducted at the Kuala Pesilam Balai Gajah estate, Division I, PT. Bahruny, North Sumatra Province. This study took place from July to July 2021. This study aims to determine the pattern of weed control in the circle on production as well as rainfall and rainy days. This study uses a descriptive method by collecting secondary data from the garden: rainfall and production data. The results of this study can indicate that Indonesia's unstable palm oil production is caused by several factors, namely genetic factors, biotic factors (weeds) and abiotic factors (rainfall and rainy days). Production in 2020 is the highest production of oil palm for 4 years (2017-2020) with a total production of 5,971,760 Kilograms with an area of 336.96 hectares. The amount of rainfall is 2371 mm and rainy days is 117 days with weed control patterns on the disk carried out 4 times a year. Production in 2018 was the lowest production of oil palm for 4 years (2016-2020) with a total production of 4,032,338 kg, with an area of 267.96 Ha. The amount of rainfall is 1854 mm and rainy days is 112 rainy days with weed control patterns on the disc 2 times a year. The optimal rainfall for the growth and production of oil palm plants is 2,000 mm, but with 1846 mm of rainfall it does not mean it is not good for the growth and production of oil palm plants as long as there is no water deficit, so this rainfall is still included in the criteria for growing oil palm. Production in 2018 was the lowest production of oil palm for 4 years (2016-2020) with a total production of 4,032,338 kg, with an area of 267.96 Ha. The amount of rainfall is 1854 mm and rainy days is 112 rainy days with weed control patterns on the disc 2 times a year. The optimal rainfall for the growth and production of oil palm plants is 2,000 mm, but with 1846 mm of rainfall it does not mean it is not good for the growth and production of oil palm plants as long as there is no water deficit, so this rainfall is still included in the criteria for growing oil palm. Production in 2018 was the lowest production of oil palm for 4 years (2016-2020) with a total production of 4,032,338 kg, with an area of 267.96 Ha. The amount of rainfall is 1854 mm and rainy days is 112 rainy days with weed control patterns on the disc 2 times a year. The optimal rainfall for the growth and production of oil palm plants is 2,000 mm, but with 1846 mm of rainfall it does not mean it is not good for the growth and production of oil palm plants as long as there is no water deficit, so this rainfall is still included in the criteria for growing oil palm.

Understanding Oil Palm Smallholders’ Behavioral Intention on Sustainable Production Practices

While smallholders play a significant contribution on Indonesian oil palm production, they are confronted to sustainability challenges. This study aims to analyze determinants of their behaviour to apply sustainable practices. Theory of Planned Behavior was applied to examine the effect of attitudes, subjective norms, perceived behavioral control and past behavior toward smallholders' intention to implement sustainable oil palm production practices. In this study the sustainable practices include applying organic fertilizer, integrated pest management, non-fire land clearing, certified seed and participating in a farmer group. A survey was carried out over 242 oil palm smallholders in Kampar, Riau. Structural Equation Modeling (SEM) with Partial Least Square (PLS) program was employed to examine our hypothesis. The results show that attitudes, perceived behavioral control and past behavior have positive and significant effects on smallholders' intention to implement sustainable production practices, whereas subjective norms seems to be not significant. Smallholders tend to be individually independent in making a decision or taking action. Hence, improving attitude toward sustainability, for example, through extension service or training and providing incentives to overcome perceived behavioural control are expected to be an effective measure to encourage sustainability practices among oil palm smallholders.

Study of Crude Palm Oil (CPO) Handling and Storage Process in Palm Oil Mills in an Effort to Improve CPO Quality and Reduce the Risk of Contaminants Formation

Crude Palm Oil (CPO) is palm oil obtained from the extraction or compression process of oil palm fruit flesh and has not been purified. Palm oil is usually used for food, cosmetic industry, chemical industry, and animal feed industry. Increasingly open insight and increasing consumer awareness of the importance of food safety and quality assurance supported by technological developments and laboratory analysis methods, new types of contaminants in food products are also found. Currently, the Indonesian government is facing challenges regarding the issue of 3-monochloro-1,2-propanediol ester (3-MCPD Ester) and glycidyl ester (GE) in palm oil which can hamper Indonesia's palm oil trade in the future. The practice in the field affects the quality of CPO and the retrieval of low-quality CPO is mixed with high-quality CPO. And the length of time the process of pumping CPO from reclaimed tanks to VCT affects the quality of CPO. So this study aims to modify the pumping time and storage time of CPO from Reclaimed tanks to VCT by mixing samples from VCT (fresh CPO) and samples from Reclaimed tanks (lower quality CPO).

Analisis Strategi Perlawanan Indonesia Dalam Diskriminasi Kelapa Sawit Oleh Uni Eropa

This study aims to determine how Indonesia's resistance strategy in oil palm discrimination by the European Union. Researchers use the perspective of liberalism and idealism, and the basic assumptions are peace and war avoidance. The results show that EU discrimination against Indonesian CPO products requires players in the palm oil industry and the Indonesian government to work together to design and develop intensive diplomatic efforts aimed at the EU government and its people. The Indonesian government's efforts to oppose the EU's incentives for the use of palm oil are 1) filing claims and challenges against the EU incentives to reject palm oil restrictions, 2) The Indonesian government emphasizes the importance of distributing Indonesian palm oil globally 3) Lobbying the leadership of the APEC organization to ensure the safety of Indonesia's palm oil industry 4) Undertake Join Capaign efforts by the world's largest palm oil producer to protect the stability of palm oil shipments and take action against negative campaigns against palm oil, and unite voices in drafting an agreement to jointly support industrial development palm oil to be more resilient against the global backlash on palm oil.

Economic Potential of Oil Palm Plantation Using Remote Sensing-Based Technology in Indonesia

Abstract. The productivity of Indonesia's palm oil was considered low when referring to the 14.6 million ha land area in 2019, with the production of national palm oil only reaching 3.2 tons of CPO/ha/year. The uses of remote sensing technology as a means of monitoring and supervising, were expected to increase oil palm production in line with productivity. The purpose of this study was to determine the economic potential based on oil palm plantation productivity, with and without using remote sensing-based technology, as well as other variables likely to affect productivity. Primary and secondary data collection methods were also used in this research. There were three quantitative methods being used in this study, namely (i) Multiple regression model with panel data, (ii) Data Envelopment Analysis (DEA) tool, and (iii) Multinomial logistic regression technique. The results showed that the generated economic potential from the utilization of the remote sensing model, had efficient opportunity value of 10.48, which was higher than the non-usage of the technology. Therefore, the main variables that affected productivity in this study, were fertilizer and labour. Keywords: Efficiency, oil-palm, remote sensing (spot 6), policy, binomial logistic

Impact of Roundtable on Sustainable Palm Oil (RSPO) Certification on The Indonesian CPO Exports to The Destination Countries

Palm oil is one of the commodities of plantation products that has an important role in economic activities in Indonesia because of its ability to produce vegetable oil which is much needed by the industrial sector. The potential development of Indonesia's palm oil exports is very high considering the many benefits derived from these products. Therefore, there is a need to ensure that CPO products have a sustainable nature, one of which is that CPO products must be RSPO certified. This study analyzes how the influence of various factors that can affect Indonesia's CPO exports, one of which is RSPO certification using panel regression with the basic gravity model. The data which is used in this research is panel data in the form of time series for 20 years with cross sections from five major importing during 1999-2018. The analysis shows that importer’s GDP and exchange rate significantly and positively affect Indonesia's CPO exports, while the population of the importing country has a significant and negative effect. The RSPO dummy variable shows a significant and positive value, meaning that there was a significant difference between CPO exports when the RSPO certification took effect before and after 2008. Although the RSPO has an effect on Indonesia's CPO exports, there are still a number of indicators from the RSPO that Indonesia has not been able to fulfill. That indicator can be used as a material for consideration to be adopted in national certifications such as ISPO so that Indonesian CPO products can be said to be sustainable so that they can reach wider export markets.

INDONESIA GOVERNMENT'S EFFORT TO FACE EU DIRECTIVE REGULATION CONCERNING PALM OIL IN EUROPE

This article describes Indonesian Government effort dealing with new regulation in European Union, namely EU Directive which prohibit palm oil use for biodiesel. The European Commission has concluded in a regulation that palm oil use in biofuels will be reduced to zero by 2030. This regulation is based on allegations against oil palm plantation that causes excessive environmental damage. Environmental issues that arise as a result of the growing awareness of the international community in preserving the earth are often contrary to the wishes of a country in developing its economy. Campaigns from environmental activists in Indonesia highlight a lot about the palm oil industry which is often considered not sustainable and causes environmental damage. On the other hand, this campaign caused a negative reputation followed by the decline of Indonesia's palm oil exports to Europe. One of the regulations that arose was the EU Directive which was considered by the Indonesian government as discrimination against oil palm products and their derivatives. This article uses a qualitative analysis method. This study aims to analyze how the Indonesian government responds to the EU Directive regulation on Palm Oil which is considered detrimental to Indonesia's palm oil exports to Europe.

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI KINERJA PERDAGANGAN MINYAK INTI SAWIT INDONESIA DI NEGARA IMPORTIR UTAMA

Sebagai salah satu produsen terbesar di dunia, Indonesia memiliki kepentingan untuk meningkatkan pangsa ekspor minyak inti sawit di tengah isu negatif yang berasal dari negara produsen minyak nabati lainnya terhadap industri minyak sawit dan turunannya; di sisi lain menjaga ketersediaan PKO domestik sebagai bahan baku industri. Penelitian ini bertujuan untuk mengetahui faktor-faktor yang mempengaruhi kinerja perdagangan minyak inti sawit Indonesia. Penelitian menggunakan model ekonometrik persamaan simultan yang terdiri dari 18 persamaan struktural dan 25 persamaan identitas yang diestimasi dengan metode 2SLS (Two Stage Least Squares) menggunakan data time series tahun 1990-2017. Hasil estimasi menunjukkan bahwa perubahan penawaran ekspor minyak inti sawit Indonesia ke negara tujuan ekspor utama responsif terhadap perubahan luas areal minyak inti sawit domestik, peningkatan teknologi, dan dummy kebijakan hilirisasi. Sementara itu, permintaan negara importir utama minyak inti sawit responsif terhadap perubahan harga minyak sawit dunia, pendapatan perkapita penduduk negara, dan harga minyak mentah dunia. Kebijakan hilirisasi yang diiringi dengan perbaikan teknologi, infrastruktur, maupun iklim usaha diperlukan untuk meningkatkan efisiensi industri minyak inti sawit domestik dan mengurangi ketergantungan terhadap ekspor.

Competitiveness analyses of Indonesian and Malaysian palm oil exports

This study investigates the competitiveness of Indonesian and Malaysian palm oil export with special focus on five major importing countries, namely China, Singapore, India, Pakistan, and Netherlands, from 2001 to 2014. The methods used are Revealed Comparative Advantage (RCA), Revealed Symmetric Comparative Advantage (RSCA) and Constant Market Share (CMS). Findings/Originality : The RCA and RSCA calculations show that Indonesia and Malaysia have positive indices. Yet, Indonesia's RCA and RSCA indices from 2001 to 2014 are higher than those of Malaysia. It demonstrates that Indonesia's palm oil is more competitive than that of Malaysia. Based on CMS calculation, the findings show the following. Firstly, palm oil commodity is influenced by high demand from 2001 to 2014 in five major importing countries. Secondly, both countries have concentrated on the export commodity whose markets have been growing relatively fast. Thirdly, Indonesia's palm oil commodity experiences rapid growth in the selected markets while Malaysia experiences stagnant growth. Overall, Indonesia's palm oil competitiveness is higher than that of Malaysia in five major importing countries.