Indonesian Palm Oil Research Articles

Indonesian Economic Diplomacy toward Palm Oil: Indonesia’s Respond to the EU Resolution on Palm Oil and Deforestation of Rainforest (2016/2222(INI))

Palm Oil becomes one of Indonesian major trade commodity, besides oil and gas. It has comparable quality with palm oil from Malaysia, Netherland, Papua New Guinea, and Guatemala. Therefore, an accessible and good prospect of the global market is essential for the sustainability of Indonesian palm oil production and marketing. European Union (EU) is a major importer of Indonesian palm oil because the consumption of palm oil among EU member countries is considered high. However, in the past few years, there were some international reports, including European media, that Indonesian palm oil is environmentally unfriendly, because the operation of palm oil plantation leads to deforestation and the greenhouse emission issue, abandoning the local people's, rights and decreasing the population of orangutan and other animals. EU then produced EU Resolution on Palm Oil and Deforestation of Rainforest (2016/2222(INI)) in 2017 to ban the import of Indonesian palm oil. Furthermore, different views among both sides and competition over similar products from Europe contribute to Indonesian efforts to conduct economic diplomacy, to protect the Indonesian economy.

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

The Use of Pest Mobile Application for Optimizing the Sustainability Support of Pest Management in Oil Palm Plantation

The road map of the Indonesian palm oil industry, which is entering the industrial revolution 4.0, is by innovation and sustainable development of digitalization, referring to the application of machine automation and human-machine communication. As a significant player in the global palm oil industry, Indonesia has started to apply digital technology in the oil palm plantation industry. In this paper a digital early detection of pests and its contributions to sustainable pest control is explored. This technology will make it easier to monitor activities on the plantation on a regular basis. Real-time observation is needed to find out the problem as early as possible. This collected digital information is then statistically analyzed and linked to ecosystem services to get better decisions, especially for sustainable integrated pest control (IPM). The use of smartphone technology with an HDI implementation assessment approach and the Triple Bottom Line is the company’s responsibility to the environment (planet), social (humans), and profit.

Development prospects of Indonesia's biodiesel industry: A study of raw material, market, and policy aspects

Biodiesel is a fuel substitute for diesel which is considered more environmentally friendly because the raw materials used come from a mixture of palm vegetable oil, increasing production. The emergence of black palm oil campaigns in several importing countries has encouraged the urgency of biodiesel development in Indonesia. This study aims to; photograph the development of the Indonesian biodiesel industry and describe the development prospects of the Indonesian biodiesel industry in terms of raw materials, markets and policies. This research method uses descriptive analysis to examine the chances of developing the Indonesian biodiesel industry regarding raw materials, markets, and policies. The results showed that; the development of the Indonesian biodiesel industry continues to increase when viewed from the aspects of increasingly large raw materials, promising markets, and policies. It will continue to be studied and updated by the Indonesian government, so it is hoped that this biodiesel can significantly replace imported diesel and absorb Indonesian palm oil. The biodiesel industry in Indonesia has an extensive prospect to continue after implementing the B-30, which was first implemented in 2020. It can be achieved by paying attention to the available raw materials used in the biodiesel industry.

Developing a precision spatial information system of smallholder oil palm plantations for sustainable rural development

Oil-palm products are contributes significantly to economic growth, creating jobs and government revenue. Of the 14 million ha of Indonesian oil palm plantation, 40% are smallholder farming characterized by low productivity, irregular distribution, and fragmented. The lack of smallholder farming traceability information is one of the main issues for product certification, which make it difficult to access the international markets and is an obstacle to increasing productivity and developing rural-based processing. The OPTIMAL-IPB technology using Artificial Intelligence (AI) approach provides precise spatial information. The objectives of this research, which were carried out in Jambi Province are to detect precisely: (1) the positions, numbers, and areas of smallholder oil palm plantation in the village with precision; (2) the suitability of the spatial distribution of oil palm plantations compared to the spatial plan (RTRW); (3) potential income of farmers and land tax at village level based on production estimates. The study significantly increased the accuracy and detailed information of palm oil farming data, providing essential information for land use control and the traceability of oil palm products. Village and regency governments can utilize this spatial information system for income tax calculations, preparing various production, and income improvement programs.

Selected Factors Influencing China's Palm Oil Import Demand from Malaysia

The export of palm oil from Malaysia to China has declined since 2013, although the Malaysian Ringgit has depreciated. The Malaysian palm oil market has also struggled against the Indonesian palm oil and soy oil in China. Hence, this study aimed to identify the significant factors influencing China's demand for Malaysian palm oil by adopting the Auto-Regressive Distributed Lag (ARDL) analysis. The finding revealed that the currency rate of exchange, the foreign trade price of Malaysian palm oil to China, and the international soy oil price significantly influence Malaysian palm oil demand in China. Nevertheless, China's real GDP per capita showed a positive and significant influence only in the long run. The demand for Malaysian palm oil in China was not significantly impacted by the palm oil price offered by Indonesia, neither in the long run nor short run. Thus, the authorities related to this industry need to strategize the stock management system to control the price and currency stabilization to maintain its competitive power.

Unraveling disputes between Indonesia and the European Union on Indonesian palm oil: from environmental issues to national dignity

Indonesia has been the largest palm-oil producer in the world since 2006. The country’s palm-oil products are exported globally, including to member states of the European Union. In recent years, European countries have implemented increasingly stringent regulations on palm-oil imports, including from Indonesia, through policies such as the Renewable Energy Directive (RED) II. This study qualitatively analyzes Indonesia’s responses to these policies. We collected data using in-depth interviews and focus-group discussions with government policymakers, activists from nongovernmental organizations, and oil-palm smallholders and entrepreneurs in Indonesia. We demonstrate that the European Union policy has experienced a shift in recent years which has made it more difficult for Indonesian palm-oil products to enter European markets. The Indonesian government views these policies as an environmental issue, a form of trade war, and a challenge to the sovereignty and dignity of the nation. The government’s responses have included improvements to cultivation and business practices, demands for broader and more inclusive policies, and “resistance,” for example, by referring the case to the World Trade Organization.

Determinan Ekspor RPO Indonesia di Pasar Organisasi Kerjasama Islam

Indonesia has been the largest exporter of Refined Palm Oil (RPO) in the world which OIC countries being main export destination markets. However, most of Indonesian RPO exports to the OIC countries are still concentrated in four countries, namely Pakistan, Malaysia, Bangladesh, and Egypt. The distribution of Indonesian RPO exports to the OIC countries is still in small number due to the high tariff applied by several OIC countries. This research aims to analyze the factors that influence Indonesian palm oil trade in 20 OIC countries. The analysis methods used Gravity Model and Trade Potential Analysis. The result using gravity model showed that the real GDP per capita of destination countries, the real GDP per capita of Indonesia, exchange rate, price, tariff, and the RCA index of Indonesian RPO in destination countries are significantly influence its volume exports. On the other hand, economic distance and population of destination countries do not have a significant effect on the RPO export volume.

Determinants of Profitability of Indonesia Palm Oil Industry

Palm oil is one of Indonesia's leading sectors. Palm oil companies on the IDX experi-enced a decline in profitability from 2016-2019. Some even had negative profits. One indicator to assess the company's performance is to look at the level of profitability. This study aims to analyze the effect of leverage, activity, liquidity, and sales growth on the profitability of palm oil companies for the 2016-2020 period. The sampling method used is non-probability sampling with a purposive sampling technique. This study uses panel data regression analysis. The results showed that Debt to Asset Ratio, Total Asset Turnover, and Current Ratio had a negative effect on ROA, while Working Capital Turnover had no effect on ROA, and sales growth had a positive effect on ROA.

Regimes of Extreme Permission in Southeast Asia: Theorizing State-Corporate Crime in the Global South

AbstractCorporations’ profit-making objectives are a central force guiding development strategies in the Global South but contradictorily can be blamed for a range of social and environmental harms. This article brings a state-corporate crime lens to bear on the economic and political processes that shape Global South-located commodity production. It seeks to understand the functioning of neo-imperialist profiteering through elaborating the concept of regimes of extreme permission, described as modalities of ‘intense’ accumulation, defined by weaker or unstable forms of hegemony consolidation, illegal/illicit practices, state-sanctioned violence and various socio-environmental degradations. Through analyses of two regimes of extreme permission in the SE Asian context—Indonesian palm oil plantations and Export Processing Zones for garment production in the Greater Mekong Subregion—the paper describes the role of states and corporations in constructing the repressive socio-political space required for neo-colonial corporate accumulation. We contribute to ‘Southernizing’ criminology by re-articulating state-corporate crime theory within imperialist contexts. It also shows that neo-colonialism can be understood as the de-regulation of corporate accumulation.

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.

The Analysis of Competition for Indonesian Palm Oil Derivative Products in The Italian Market

Indonesia is the world's largest producer and exporter of palm oil that has been recognized by foreign countries. Italy is the largest importer of Solid Palm Oil Fraction (SPOF) in the European Union. This article examines the analysis of SPOF Indonesia's competition in the Italian market. The method used is AIDS with a SUR approach that iterates through the application of STATA. The secondary data used is a time series on import value and quantities from 2004 to 2021 by Italy. The results showed that the price elasticity and expenditure of Indonesian SPOF imports were more elastic than Malaysia and the Netherlands. SPOF Indonesia is a luxury good but the price is lower. The elasticity of own price (Hicksian), the Netherlands is more elastic, while Indonesia is Marshallian. Cross price elasticity (Hicksian and Marshallian), the relationship between Indonesia-Malaysia compete by means of substitution. Meanwhile, the Netherlands-Indonesia and the Netherlands-Malaysia complement each other. Therefore, the Indonesian must add quality classes and added value to SPOF products in accordance with the quality of Malaysian and Netherlands products to increase consumer attractiveness. As a result, there will be bilateral cooperation between the two main producing countries of the SPOF in the Italian market to prevent a trade war. Keywords: AIDS, competition, elasticity demand, solid palm oil fraction

Konstruksi Realitas Petani Kelapa Sawit Dalam Film Naga Naga Naga: Analisis Semiotika Charles S. Peirce

The national palm oil industry is increasingly becoming the government's attention. In the midst of opinions about the dominance of big companies and the weak image of smallholder oil palm plantations, demonstrations triggered by the scarcity of cooking oil show the figure of Indonesian oil palm farmers. This study wants to explore how the media constructs the reality of oil palm farmers. The theory used is the social constructions of reality Peter L. Berger and Thomas Luckmann. While the descriptive qualitative research approach uses the semiotic analysis method of Charles Sanders Peirce. The data analysis technique used non-participant observation and secondary documents. The results of the research on the Naga Naga Naga film with the main character Nagabonar concluded that there is a semion with an interpretation of oil palm farmers. With the triangle of meaning method, oil palm farmers are constructed as people who are economically prosperous, have high nationalism, and have intelligent thoughts even though they are not formally educated. This study is also a reflection on the reality that occurs in the community.

Analisis Ekspor Minyak Kelapa Sawit (CPO) Indonesia Ke Sepuluh Negara Tujuan Utama Tahun 2008-2020

Indonesia is the largest palm oil producer in the world as well as the world’s largest CPO exporter. However, Indonesia has not been able to become a peg for CPO prices and in 2020 there was a decrease in CPO export volume due to pandemic Covid-19. This study aims to: (1) analyzing the effect of Gross Domestic Product of the destination country on Indonesian palm oil (CPO) exports in 2008-2020. (2) analyzing the effect of Economic Distance on Indonesian palm oil (CPO) exports in 2008-2020. (3) Analyzing the effect of Riil Exchange Rate on Indonesian palm oil (CPO) exports in 2008-2020. (4) Analyzing the effect of palm oil export prices on Indonesian palm oil (CPO) exports in 2008-2020. This study uses secondary data related to palm oil sources from BPS, Bappepti, BI, BPDPKS, World Bank, and other related sources. The analytical tool used in this research is panel data regression analysis (pooled data) with Gravity Model. Based on the result of the analysis, it is know that Gross Domestic Product (GDP) of export destination countries, Economic Distance, and Riil Exchange Rate has positive and significant effect of on CPO exports. While CPO Export Price variables have a negative dan significant effect on CPO exports.

FAKTOR YANG MEMPENGARUHI NILAI EKSPOR MINYAK SAWIT INDONESIA KE BEBERAPA NEGARA ASIA

The purpose this study to analyze effect of GDP, foreign exchange rates, and population simultaneously and partially on value palm oil exports to India, China, Pakistan, Bangladesh, and Singapore. The research locations in this study in several countries Asia, including India, China, Pakistan, Bangladesh, and Singapore from 2015 to 2020. The data used secondary data, analyzed by multiple linear regression analysis. The results of the study show that GDP, exchange rates, and population simultaneously influence the value of Indonesian palm oil exports to several Asian countries. GDP partially has a negative and significant effect on the export value of palm oil, the exchange rate partially has a positive and significant effect on the export value of palm oil, and the population partially has a positive and insignificant effect on the export value of Indonesian palm oil to several Asian countries.
 Keywords: GDP, exchange rate, population, exports, palm oil
 

Comparative Analysis of Social Economic and Ecological Progress of “Oil Palm Village” and “Non-Oil Palm Village” Communities

This study aimed to analyze the level of social, economic, and ecological progress of the Oil Palm Village communities and compare the level of social, economic, and ecological progress between the Oil Palm Village and Non-Oil Palm Village communities. Indonesia is one of the major palm oil-producing countries in the world. Palm oil has brought economic benefits nationally and also to local communities. However, in its development, there has been a controversy surrounding the palm oil commodity, namely in the case of Indonesian palm oil which is related to the issues of deforestation and territorialization due to the economic interests of palm oil versus the existence of forest areas. This study used a Quantitative Approach with Secondary Data Methods from primary sources (Ministry of Village, Development of Disadvantage Region, and Transmigration, BPS, and Directorate General of Plantation) with the village communities as the unit of analysis. As many as 524 village communities were selected from the population of Oil Palm Villages and Non-Oil Palm Villages in eight provinces of Indonesia’s oil palm centers with a combination of Purposive Multistage Sampling and Propensity Score Matching methods. Descriptive analysis, comparative analysis, analysis of the difference in progress using the Difference in Difference (DID) model, and the binary logistic regression method were carried out in this study. The results of the study revealed the facts that there has been an increase in social, economic, and ecological progress in various Oil Palm Village communities. The level of social, economic, and ecological progress of Oil Palm Village communities is higher than that of Non-Oil Palm Village communities. These facts indicate that the community sustainability level of the Oil Palm Village communities is superior to that of the Non-Oil Palm Village communities.

Ecological criteria for sustainability in global, national, and local scales: a review of the literature and case study in the indonesian palm oil sector

Current sustainability assessment methods are mostly disseminated at global or national scales. However, the sustainability criteria often fail to capture many ecological characteristics that are important to the local population. This article aims to understand the importance of ecological criteria for sustainability by reviewing the literature on issues related to the implementation of ecological criteria on global, national, and local scales. This study uses qualitative content analysis by examining secondary data searches such as journal articles and research reports regarding the topics. We use NVIVO software for theme coding. We also use a case study in the oil palm plantation in Belitung Island and the Indonesian palm oil sector to see how global and national ecological criteria for sustainable palm oil were designed and whether it is adaptable to the local context. This study reveals three main themes namely the function of ecological criteria and indicators, the adaptation of global and regional criteria, and the importance of local characteristics and value. We concluded that although global and national criteria for sustainable palm oil have been established, the characteristics of local biodiversity and social value and its prioritization are needed to ensure sustainability reached the lowest scale.

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.

Daya Saing Ekspor Crude Palm Oil dan Refined Palm Oil Asal Indonesia dan Malaysia di Pasar India

This research examines: 1) to what extent is the competitiveness of Indonesian palm oil, especially CPO and RPO in the Indian market compared to similar products from Malaysia; and 2) what factors determine the competitiveness of Indonesian CPO and RPO exports in the Indian market. The research method uses the RCA and RSCA indices as well as the regression function to determine the dominant factors that affect the competitiveness of Indonesian CPO and RPO exports in the Indian market with data ranging from 1995 to 2021. The competitiveness of Indonesian CPO exports in the Indian market shows a more stable trend in the period 1996 to 2021 and the competitiveness of Malaysian CPO in that period has decreased slowly. The competitiveness of Indonesian and Malaysian RPO exports in the Indian market decreased in the Indian market from 1996 to 2013, then there was a strengthening of competitiveness from 2014 to 2019. The competitiveness of Indonesian CPO exports to the Indian market is influenced by the volume of Malaysian CPO exports to India, the Indonesian CPO export tax, the CPO import tax in India, the real exchange rate of the Rupiah against the US Dollar, and the real price of CPO on the world market. Furthermore, the competitiveness of Indonesian RPO exports in the Indian market is influenced by the volume of Malaysian RPO exports to India, the real exchange rate of the Rupiah against the US Dollar, the export price of RPO, the price of soybean oil on the world market, and the RPO import tax in India.

MASS BALANCE APPROACH AT PALM CARBON CYCLE

Development of Indonesian palm oil industry, not only contributes positively to economic sector. Biggest challenge lies in the negative issues of oil palm development, namely environmental issues. Land use change, forest clearing, deforestation, peat land for palm plantation expansion are environmental issues because they are considered to disturb the balance of greenhouse gases. The use of non-standard fertilizers and POME processing can also increase CO2 emissions, which in turn will reduce carbon storage in vegetation and soil. Soil is the most potent organic carbon sink compared to plants. Soil is an organic carbon pool (reservoir) that accumulates organic carbon in and organic carbon out. The accumulated carbon is influenced by aboveground biomass, belowground biomass, necromass, litter and soil organic matter. So that the development of oil palm is accused of being one of the factors that play a role in soil organic carbon (SOC), soil carbon loss (SCL), net carbon balance (NCB), or greenhouse gasses (GHG) emissions. Where this is a very important component in the palm carbon cycle that has an impact on the global climate. The mass balance approach to the palm carbon cycle obeys the law of conservation of mass. The mass of palm carbon before and after processing is constant. This means that the total mass of palm carbon during the process does not change, only a phase change occurs, namely solid, liquid, and gas.