Palm Oil Trade Research Articles

Indonesian palm oil towards sustainability: a system dynamic approach

Abstract The role of Indonesian palm oil in economic development and environmental degradation is a highly debated topic. Palm oil is essential to national development in Indonesia by providing a livelihood for millions of smallholder growers, plantations, and industries labor; it also contributes to national revenue from domestic and global trade. However, the growth of the palm oil industry also brings negative environmental impacts. The expansion of oil palm plantations is considered as one of major drivers for deforestation, peatland draining, and fire, leading to biodiversity decline, habitat loss, and greenhouse gas emissions. Here, we develop a system dynamic modelcalled SIPOS (Simulation of Indonesian Palm Oil Sustainability) to understand the current dynamic of the palm oil value chain to the economy and environment. We simulate the future condition of the palm oil sector with sustainability interventions such as intensification, implementation of No Deforestation, No Peat, and No Exploitation (NDPE), and trade. The model simulation result will include various indicators such as plantation extent, palm oil production, deforestation from the palm oil sector, Greenhouse Gas (GHG) emissions, and revenue from the palm oil trade. This study aims to show the use of a system dynamic model for sustainability scenario development, simulate multiple scenarios, measure the impact on the economy and environment, and then compare the benefits and disadvantages of each scenario.

Strategy for Increasing Exports of Indonesian Palm Oil

Abstract Palm oil and its derivatives contribute to 13% of Indonesia’s total exports. Indonesia has a significant opportunity to become a major player in the global palm oil trade but faces threats in expanding market access and even maintaining existing markets. This research aims to analyse the strengths, weaknesses, opportunities, and threats in the plantation sector, especially palm oil, in Indonesia, using competitiveness analysis and Export Product Dynamic to formulate strategies for enhancing the export of palm products and derivatives. From this analysis, it is concluded that Indonesia has strength in its geographic conditions, but needs to strengthen human resources, especially in the agricultural sector, and add value to export commodities beyond raw materials. With the growth of the international market and the increase in the number of free trade agreements held by Indonesia, the potential for developing market access for palm and its derivatives is likely to expand. However, Indonesia also faces non-tariff barriers and environmental unfriendliness stigma, resulting in rejection or obstacles for Indonesian products to enter export destination countries. Strategies to be explored further include expanding into emerging markets while maintaining traditional markets, optimizing research and development for upstream efficiency and downstream derivative product diversification, improving sustainable palm oil industry governance, and enhancing domestic policies to support the palm oil industry.

The Palm Oil Industry in Nigeria and Malaysia: Decline and Economic Sustainability

Oil palm is a west African crop. The trade in palm oil has emerged during the industrial revolution led by Britain, this palm oil was used to lubricate machines. In 1960s, Nigeria was the largest producer of palm oil globally, which accounted for the 43% of palm oil production entirely, but then the entire production declined due to some factors that slowed the palm oil production growth. While in Malaysia, oil palm production serves as the leading and contributing sector to its economy; and it also achieved recognition globally. Palm oil has made a huge contribution to Malaysia economic growth by providing employment, improving infrastructure, alleviating poverty, and generating income for workers and government. This paper objective is to explore the Nigerian decline and Malaysian sustainability on palm oil. It is a qualitative paper, it used primary and secondary method to collect data. The primary method used open-ended interview to collect data, while the secondary method used documents such as: books, journal, conference papers to collect data; and it employed inductive thematic analysis for analysing the interview data collected. It used ATLAS.ti 8 software to help analyse the data. The finding is Nigerian decline which includes: oil boom in 1970s and decline in agriculture, civil war, and traditional palm oil production; and Malaysian sustainability on palm oil includes: environmental consciousness, economic escalation, and social commitment. In conclusion, Nigeria has to learn from Malaysian sustainability to recover its production.

Palm oil trade restrictiveness index and its impact on world palm oil exports

Palm oil trade restrictiveness index and its impact on world palm oil exports

Indonesia's Strategy in Dealing with The European Union Green Protectionism in The Palm Oil Trade

The presence of palm oil in the international market is relatively competitive. As a producer of 59% of global palm oil, Indonesia faces green protectionism in the EU market. It is used for environmental protection, anti-deforestation, and global warming control. Therefore, this study analyzes Indonesia's response to EU market protectionism. The study uses the perspective of protectionism and the dynamics of state adjustment behavior in conflicts of national interest. The country's adjustment strategy theory is complemented by the behavioral choice strategy theory in facing international sanctions. The authors use qualitative methods, with literature study, observation, and supplemented interviews. In dealing with palm oil trade barriers, Indonesia initially utilized the domestic offensive strategy to deal with the restrictions, changing domestic palm oil management policies, including forest moratorium, terminating palm oil permits, adopting the ISPO certification system, and downstream the domestic palm oil industry. However, it was ineffective, and various restrictions became more vigorous, so Indonesia implemented an international offensive strategy, encouraging changes in international regulations and eliminating protectionism against palm oil. Nevertheless, the resistance has yet to be very successful. Therefore, Indonesia must perform proactive conformance to find new markets for Indonesian palm oil.

Impacts of palm oil trade on ecosystem services: Cameroon as a case study

Palm oil (PO) producing countries are expanding oil palm cultivated areas to meet growing demands at the expense of tropical forests and the ecosystem services (ES) they provide. Current responses to the growing call for sustainable PO trade are based on environmental impacts such as deforestation, partly because most social impacts have not been studied. These responses are based on information from Asia and South America since little has been done in Africa. This study fills these gaps by synthesizing the impacts of PO trade on ES from peer-reviewed and gray literature. Our case study is Cameroon, which harbors part of the Congo basin forest and experiences fast deforestation rates. Fifty-three sources of literature were used for this study (53% peer-reviewed and 47% gray literature). We found that oil palm cultivation was reported to negatively affect 15 ecosystem services in 147 instances (85%) and positively affect seven ecosystem services in 25 instances (15%). The majority of negative impacts were on carbon sequestration and climate regulation (20%), habitat quality (13%) and genetic diversity (13%). The most positive impact was on food provision (8%). These results highlight the trade-offs between food provision and other ES. While current policy responses have focused on environmental impacts, many negative social impacts are associated with PO trade that should be addressed within new policy tools.

Green consumer behaviour influences Indonesian palm oil sustainability

Palm oil businesses affect livelihoods and the environment, particularly forests, with land-use change and climate change impacts. This research aimed to develop a model for understanding the influences of global trade and political economy factors on palm oil sustainability and livelihoods in Indonesia. It combined systematic review with structural equation modelling through a model called POPETS (Palm Oil Political Economy and Trade Structural equation model). The study revealed that palm oil sustainability is defined by employment opportunities and no deforestation, while livelihoods are defined by household income. Trade and political economy factors (structures, institutions and actors) significantly influence the sustainability of palm oil. Trade has indirect effects on sustainability and livelihoods, while actors have a direct effect on sustainability. There is also a positive correlation between sustainability and livelihoods. These findings suggest the importance of synergizing global trade effects and national government roles to advance palm oil sustainability in the producing countries.

The Impact of One Belt One Road and Indonesia-Pakistan Palm Oil Trade Liberalization

The Impact of One Belt One Road and Indonesia-Pakistan Palm Oil Trade Liberalization

The Influence of K3 (Occupational Health and Safety), Training and Career Development on the Performance of PTPN IV Kebun Gunung Bayu Employees

The Indonesian palm oil industry is important for the Indonesian economy with palm oil trade performance continuing to increase. However, the challenge of developing oil palm is limited human resources. Companies implement K3 because many activities involve work accidents and disease risks. Training to provide, and develop competencies. Career development is company support to motivate employees to be able to develop their careers better. This research aims to analyze the influence of K3, training and career development on the performance of PTPN IV Kebun Gunung Bayu employees. The research method is quantitative. Data analysis methods are validity testing, reliability testing, classical assumption testing, multiple linear regression analysis and hypothesis testing. The research results show that K3, training and career development have a significant effect on employee performance.

Sustainable Bioavtur: A System Dynamics Approach to Addressing the Aviation Industry’s Environmental Impact

The global energy crisis, predominantly affecting fossil fuel sources, poses significant challenges to numerous sectors worldwide, leading to escalating fuel prices and rising costs of living and production. The aviation industry, in particular, faces severe repercussions as domestic avtur production fails to meet the soaring demand, jeopardizing economic profitability and energy security. To tackle these issues, this study employs a qualitative modeling approach using system dynamics to investigate the interconnections among social, economic, technological, and environmental components within the biofuels development system. The research highlights the urgency of implementing several measures, including land conversion restrictions, regulation of palm oil trade schemes, and technological advancements in bioavtur production in Indonesia, to mitigate potential adverse consequences. The findings underscore the aviation industry’s contribution to greenhouse gas emissions and emphasize the need for sustainable biovehicles. This study provides valuable insights for policymakers, scientists, and professionals in the agricultural environment, ecology, and resources field, offering strategies to address the aviation sector’s environmental impact while ensuring sustainable energy alternatives.

Palm Oil Downstream Strategy: Enhancing Indonesia's Bargaining Position in International Palm Oil Trade

Although Indonesia currently dominates 60% of global palm oil production, Malaysia holds a competitive advantage in certain downstream industries. Indonesia must focus on developing its palm oil industries to process crude palm oil (CPO) into higher-value products, serving both as exports and substitutes for imported goods. This research aimed to highlight the importance of Indonesia's development of downstream palm oil industries. This research employed quantitative methods such as Pearson correlation and Granger causality, as well as qualitative methods. 
 The result showed that the fluctuation of CPO prices in the international market is closely tied to the volume of CPO exports conducted by Indonesia. Achieving higher domestic CPO production by improving the productivity of independent palm oil farmers is crucial. By enhancing their productivity from 2-3 tons per hectare to 5-6 tons per hectare, CPO supply can increase by 8 million tons annually, equivalent to approximately 16% of the total production. Reducing export should be accompanied by increased domestic CPO utilization through downstream programs. 
 By capturing half of Malaysia's current market share of HS code 1516 (animal or vegetable fats and oil, hydrogenated, inter-esterified, re-esterified, or elaidinized, whether or not refined but not further prepared), Indonesia has the potential to earn approximately 1 billion USD per year in foreign exchange. The development of biodiesel, transitioning from B30 to B40, holds the potential to save approximately IDR 200 trillion in foreign exchange. This strategic focus on downstream industries would strengthen Indonesia's position in the international palm oil market.

Is Policy Greasing the Wheels of Global Palm Oil Trade?

Oil palm is the major source of edible oil and feedstock consumed in the world. This study examined the determinants of global palm oil trade with attention to the effects of trade policies using a gravity model, PPML estimator, and the data from 1988-2020. Palm oil’s dramatic trade growth in recent years can be attributed to the economic growth of large countries, the proximity of partners and policies. Trade agreements increased crude and refined palm oil trade by up to 8 and 4 percent of the global import value, respectively. Further, the effects of policy changes due to COVID-19 and the recent export ban in Indonesia are also quantified.

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>

The Determinants of Palm Oil Price in Malaysia

Malaysia is now the international’s second-top manufacturer of palm oil, with its huge and developing palm oil enterprise, and strong international call for palm oil. Malaysia has the capability to play a first-rate position in international markets. This paper aim to examine the palm oil rate towards palm oil export, import and trade charge withinside the financial system to peer the connection between those variables. Movements in palm oil costs provide crucial alerts to imports, exports, and trade fees in Malaysia’s monetary interest. Thus, to recognize import, export and trade charge elements that can have an effect on the palm oil rate is essential to the enterprise gamers for the sustainability of palm oil activities. Thus, this study investigates the relative significance of imports and exports interest at the motion of palm oil fees in Malaysia’s financial system. By using a regressive version on palm oil fee annual statistics from 2009 to 2020, the findings display that palm oil fee is extra dominant in affecting palm oil import. However, the findings on this examine additionally determined that palm oil fees have an extensively poor relationship with palm oil export and trade charge. This study is crucial because it will provide effect and advantage the monetary and environmental destiny withinside the lengthy term.

History of the Central Volta region (Ghana) 1870-1914: european merchants, christian missions and features of colonial German government

The article is dedicated to the history of the central part of the Volta (Ghana) of the second half of the 19th-early 20th centuries: the trading operations of European entrepreneurs, Christian missions, and the peculiarities of colonial rule. The trade in slaves, cotton, ivory, palm oil and other goods made a significant contribution to the economy of the Volta basin. On the one hand, Europeans perceived it as a territory with valuable resources, and saw the potential in it for economic development and transformation into an economically self-sufficient and profitable zone under colonial rule; on the other hand, it is possible that Europeans used the routes through the central part of the Volta region only to get to the most important slave markets in the Slave Trade Era. From the middle of the XIX century the territory of modern Eastern Ghana was under the influence of various European countries (Denmark, Great Britain, France) and then the colonial governments (Germany, Great Britain). However, it was the German colonial rule (although relatively short) and most importantly the activities of the Bremen Mission largely determined the historical trajectory of the central part of the Volta region in the pre-colonial and colonial periods. The author's own results of research also point to a more "utilitarian" attitude to Avatime under the British regime (in the perception of the Avatime themselves) compared to the attitude of the Bremen missionaries acting "for a good cause" and laying the foundations of the school system and professional education.

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.

Impact of ASEAN- India Free Trade Agreement (AIFTA) on Palm Oil Trade

Aims: To analyse the trade creation and trade diversion effect of the ASEAN-India Free Trade Agreement (AIFTA) on palm oil trade among the member countries.
 Data and Methodology: Data on palm oil exports of major Association of South East Asian countries (ASEAN) member countries such as Indonesia (64.10%), Malaysia (31.52%), Thailand (2.18%), Singapore (1.95%) and Philippines (0.25%) were collected for the period of 21 years (2000–2020) and used for the analysis. The Gravity model by Ordinary Least Square (OLS) and Poisson Pseudo-Maximum Likelihood (PPML) methods were estimated with the panel data.
 Results: As expected gravity model variables the distance had a negative impact on the palm oil trade between India and ASEAN member countries. The tariff rates and export prices had a negative impact on the palm oil trade whereas; the population of ASEAN members (exporters), GDP of ASEAN members and exchange rate were insignificant. The AIFTA had a positive and significant effect on the palm oil trade from ASEAN member countries to India which denoted the trade creation effect between ASEAN members and India.
 Conclusion: The analysis showed a pure trade creation effect of AIFTA in the time and country fixed effect model. The results suggested that the palm oil trade could be pushed for further trade liberalisation in the AIFTA.

The Black Englishmen of Old Calabar

Abstract This article recovers the Afropolitan histories of Liberated Africans by examining their mobility and freedom politics. Liberated Africans enacted Afropolitanism when they returned from Sierra Leone to Old Calabar and fashioned themselves into Black Englishmen. Their Afropolitanism incorporated a dissident mode of Anglo-cosmopolitanism, thereby undermining orthodox British visions of imperial subjecthood. In using petitions to British authorities to assert their identity as British subjects, they secured their precarious freedom but challenged British monopoly of the Bight of Biafra’s transatlantic palm oil trade. Rather than being mere recipients of abolition, Liberated Africans refashioned abolition. They used forged “freedom papers” to emancipate, repossess, and traffic slaves from Old Calabar society while defending their behavior as “redemption” of slaves. Contrary to imperial fixity of African subjects, Liberated Africans evinced an Afropolitan vision of belonging. They simultaneously claimed to be natives of Sierra Leone and Old Calabar. Their contradictory ideologies and practices mitigated their marginality and confounded African elites and British imperial agents.

Out of Balance: Global–Local Tensions in Multi-Stakeholder Partnerships and the Emergence of Rival Initiatives in Producing Countries

Studies on multi-stakeholder partnerships (MSPs) have highlighted the potential for conflict in MSPs, and particularly at the global–local interface has been identified as a key source of tension for partnerships in global value chains. This article uncovers the nature of global–local conflicts, how these conflicts can play out in global MSPs, and how this can lead to the emergence of local competing initiatives. Based on three cases of global MSPs (on palm oil, soy, and ethical trade), the article identifies a set of four global–local tensions, which led to repeated disagreement and contestation in the studied MSPs. As the responses by MSPs to these tensions were insufficient to resolve conflict, local rival initiatives were created in all cases by previously participating Southern actors. These were driven by a combination of strong disagreement over time, coalition-building among Southern actors along national lines, and increased legitimacy of solutions outside the established MSPs.

A framework to understand the social impacts of agricultural trade

AbstractWhile international trade in agricultural commodities can spur economic development especially where governance is strong, there are also concerns about the local impacts of commodity production and their distribution. Previous frameworks have primarily focused on trade effects on environmental conditions in production regions, as well as economic growth and food security. Instead, we develop a conceptual framework for understanding the impact of agricultural trade on multidimensional wellbeing and equity. The purpose of the framework is to guide the analysis of the impacts of trade on people, by identifying the core concepts and organising the complexity of the local social impacts of global value chains. The framework is supported by evidence from studies on trade in soy, coffee, cocoa, and palm oil.