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Overview On Palm Oil

Indonesia is the world's largest producer of palm oil, with over 7.5 million hectares of oil palm plantations. Palm oil production continues to increase and benefits millions of Indonesians. Smallholder farms account for 37% of palm oil production, while large private estates account for 47%. Productivity varies from 2.73 tons per hectare for smallholders to 3.14 tons per hectare for large country estates. Palm oil has become the world's largest vegetable oil, surpassing soybean oil, and its use is increasing for food, fuel, and as an environmentally friendly alternative to petroleum. Indonesia's palm oil industry is projected to continue growing due to strong global demand and government support of technology,

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69 views

Overview On Palm Oil

Indonesia is the world's largest producer of palm oil, with over 7.5 million hectares of oil palm plantations. Palm oil production continues to increase and benefits millions of Indonesians. Smallholder farms account for 37% of palm oil production, while large private estates account for 47%. Productivity varies from 2.73 tons per hectare for smallholders to 3.14 tons per hectare for large country estates. Palm oil has become the world's largest vegetable oil, surpassing soybean oil, and its use is increasing for food, fuel, and as an environmentally friendly alternative to petroleum. Indonesia's palm oil industry is projected to continue growing due to strong global demand and government support of technology,

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takanies
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We take content rights seriously. If you suspect this is your content, claim it here.
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Overview on Palm Oil

The potential of palm oil has been proven by Indonesian palm oil production continues to increase. Indonesia now has 7.5 million hectares of oil palm plantations (MOA -2009), with 40 percent of which belongs to the people (Ditjenbun, 2009). National palm oil industry which occupies 6 percent of the total forest area of 132 million hectares, have been prospering millions of people of Indonesia. Oil palm plantations have now developed not only operated by state companies, but also the people and private estates. In 2003, the total area of plantation folk reach 1827 thousand ha (34.9%), plantation area of 645 thousand ha (12.3%), and large private estates covering an area of 2765 thousand ha (52.8%). Judging from the form of exertion, smallholders (PR) contributes CPO production of 3645 thousand tonnes (37.12%), large country estates (PBN) amounted to 1543 thousand tons (15.7%), and large private estates (PBS) for 4627 thousand tonnes (47.13%). CPO production also spread to the 85.55% ratio of Sumatra, Kalimantan, 11.45%, 2%, Sulawesi, and 1% other regions. Production was achieved at the level of productivity of smallholders around 2.73 tonnes CPO / ha, 3.14 tonnes of crude palm oil plantation country / ha, and private plantations 2.58 tons of CPO / ha. Palm oil is the only Indonesian non-oil commodities that occupy a strategic position in the world, considering that Indonesia is the largest producer of this commodity. In addition, since 2005, palm oil has become a vegetable oil with the largest production (24%) shifts the soybean oil (23%) previously king of world vegetable oil. According to data from Oil World Annual 2009-2010, the ratio was 27.7% for palm oil and 22.4% for soybean oil, from a total of 168.8 million tons of vegetable oil. In fact, the vast oil palm plantations around the world only 13.1 million hectares, compared to 97.3 million hectares of soybean. Oil palm plantation sector and potential derivatives industry to continue to grow because of palm oil has a comparative advantage that makes commodities more superior than vegetable oil commodities such kind of soybean, rapeseed, and canola oil, especially the amount of production in one year on each hectare of land. In addition, the use of palm oil not only as food but also fuel and environmentally friendly alternative to replace petroleum fuel, making it a consideration of factors palm oil industry will continue to grow. Moreover, Indonesia has become the largest palm oil producer in the world with production reaching 20 million tons per year and area of the area to reach 7 million hectares. The future of Indonesian palm oil industry could be bright, because in addition supported by global demand for vegetable oils continues meningkati, also because of the national production of palm oil could be upgraded with the support of the government. Technology development, especially oil palm seed, and also the more sustainable production practices applied plural oil palm companies nationwide. Bright future is also supported by a number of opportunities for improvement and quality improvement in operations and the national oil palm industry. Long-term policy direction is the development system and agribusiness competitiveness of palm oil, berkerakyatan, sustainable and decentralized. In the medium term oil palm agribusiness development policy include increased productivity and quality, development of downstream industries and increase in value added, and the provision of development funding. Palm agribusiness development strategy including the integration of vertical and horizontal oil palm plantations in order to increase community food security, the development of palm oil processing in rural areas, applying technological and institutional innovations in order to utilize the plantation resource, and market development. The strategy is supported by the provision of infrastructure (facilities and infrastructure) and government policies are conducive to increasing the capacity of oil palm agribusiness. In its implementation, oil palm agribusiness development strategy is supported by comprehensive programs of various aspects of management, namely planning, execution (Germination, cultivation and maintenance, processing, business development, and community empowerment) until evaluation.

Table. Oil Palm Production and Productivity of National Indicator Area Production Productivity Unit Ha Ton Kg/Ha 2006 6,594,914.00 17,350,848.00 3,498.00 2007 6,766,836.00 17,664,725.00 2,994.00
[4] [4] [4]

2008 7,007,876.00 18,089,503.00 3,652.00

Status Score: [4] Preliminary figures Other are Fixed rate Source: Ministry of Agriculture

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