Indonesia Needs to Become the Leader of the World Palm Oil Market

As the world’s largest producer of palm oil, Indonesia needs to seize the world’s palm oil market leader, global chain leader and palm oil regulator. Leaders of knowledge, science and technology of palm oil, and global policy leaders of palm oil

The world community has seen the importance of the Indonesian palm oil industry. Unfortunately, Indonesia itself has not seen and fully realized that Indonesia has become an important player in the market of palm oil and even vegetable oil world. It is time for the Government and all stakeholders of this nation to be aware of this. In the palm oil market even the vegetable world, the position of Indonesia is already greater than we see or feel.

Since 2006 Indonesia has successfully won the position as the world’s largest producer of palm oil. The success of Indonesia to build oil palm plantations especially since 1980, has managed to surpass Malaysia as the world’s largest producer of palm oil. At the same time, palm oil has also succeeded in shifting soybean oil as the world’s major vegetable oil. With this success, Indonesia plays an important role not only in the world palm oil market but also an important player in the world vegetable oil market.

In the last 15 years, Indonesia’s oil palm plantation has not only grown but has also undergone industrialization process both upstream and downstream, not only domestically but also to other countries. Upstream industrialization is characterized by the development of upstream palm oil industry, namely nursery industry, fertilizer industry, pesticide industry and palm plantation machine tool industry. The upstream industry is not only developed in Indonesia but also similar industries in other countries have marketed their products to Indonesian oil palm plantations.

Meanwhile, industrialization downstream is characterized by the development of industries processing CPO into various derivative products for both domestic and export destinations. The industries in question include oleofood oil industry, oleochemical industry, biodiesel industry and others. In addition to developing in the country, downstream industries, especially from large groups have also penetrated into export destination countries such as the European Union, India, China to closer and seize the market in other countries.

The palm oil industrilalisasi also attracted the development of services sector related to upstream industry, plantation and downstream palm industry. Transportation services, financing and insurance, research services, training services, certification services and others. Overall, the palm oil industry has transformed the business and the palm oil economy, from only the form of oil palm plantations to an agribusiness system not only domestically but also internationally.

As an important player in the world vegetable oil market, the world’s attention is on Indonesia. The policies and conditions of the Indonesian palm oil industry are the main variables in the global vegetable oil market analysis. The participation of world vegetable oil industry players and related industries in various international events in Indonesia such as Indonesia Palm Oil Conference (IPOC) is increasing and widespread.

Especially in the last five years, related to the important role of Indonesia. As the world’s largest producer of palm oil, Indonesia should also be understood as the world’s palm oil market leader, global chain leader and palm oil regulator. Leaders of knowledge, science and technology of palm oil, and global policy leaders of palm oil.

If Indonesia is unable to position itself and seize it as a leader of the global palm oil industry, it will be taken over by others. The phenomenon of IPOP, RSPO, HCS / HCV coming from the West and being forced into Indonesia, is a symptom of Indonesia’s failure as a global palm oil market leader.

Once again, Indonesia’s palm oil industry has evolved into a Mega Agribusiness Global Palm System. Growing beyond the boundaries of sectoral development. Currently at least 15 ministries / government agencies related to the affairs of Mega Sustainability Agribusiness System. Therefore, the palm oil industry can no longer be managed only at the level of echelon III / IV of the Ministry as it is today. This is like the State of Indonesia is only administered by an organization at the level of Regent or Camat. It is time for national sustainability to be taken as minister level so it is easier to win the position of world market leader of palm oil.

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