Palm Oil Industry is The Road for Indonesia to be a Global Player

 This nation’s energy needs to be focused on the downstream of palm oil to make Indonesia the king of biodiesel, bio-premium and bio-lubricant in the world

 Japan and Korea has become one of the top global players for automotive and electronics industries. The competitiveness of Japanese and Korean industries are not falling from the sky, but are built consistently and continuously. These days, all countries recognize and use automotive and electronic products from Japan and Korea, including in European countries and the United States who first developed the product. The global economy is represented by the economy of Japan and Korea.

What about Indonesia? It is clear that until now and also may be forever, we will become the market / consumer of the world’s automotive industry and electronics, even also industrial market of other countries. It is difficult for Indonesia to become a global player in industries that now has been dominated by advanced, industrialized nations. Therefore, Indonesia should choose which industry has the opportunity as a global player or major exporter. One (if not the only one) that is likely to bring Indonesia to be a global player is the palm oil industry. This is not an illusion or a dream in a broad daylight. Indonesia’s palm oil industry has successfully brought Indonesia to be a global player, even though it is only in the form of crude palm oil (CPO) for now. Almost all countries in the world consume palm oil and more than half of the world’s countries are involved in CPO trading. This is the basic principal.

 The next step that we are initiating is to process CPO into various derivative products of oleo-food, oleo-chemical, biomaterial and bio-fuel products. We have not yet produced Rattan that can be produced from CPO.

Energy of the nation needs to be focused more on developing downstream of CPO technology needed for downstream process of CPO. To win as a global player in CPO downstream products is not enough to be done domestically. Indonesia’s downstream CPO-based industry needs to be more driven to develop downstream industries in other countries with our strategic partners in various countries. Downstream industries ,other than developed in Indonesia, must also go international.

Most of the large groups of Indonesian oil palm plantations have gone international. Going international step needs to be accompanied by accelerated development of human resources proficient in downstream technology.

The best talents of Indonesia should master downstream technology that is more advanced than other countries. This needs to be a priority and focus of the Ministry of Research and Higher Education, so that in the due time, we are not only exporting palm oil products but also exporting downstream technology experts. Just like Japan and Korea with their automotive and electronics industries, by building global firms, MNC, strategic alliances in various countries, experts from both countries are an important part of these industries in various countries. Indonesia has succeeded in becoming the world’s “CPO king”. Now we also have to step up by becoming the “king” of bio-surfactant, bio-lubricant, biodiesel, bio-fuel and other biomaterial products. We also have to accelerate in exporting the downstream industry experts to various countries. Japan, Korea, France, Germany, and the United States will remain the “king” of the automotive world. Indonesia should be able to become the “king” of biodiesel, bio-premium and bio-lubricant in automotive world.

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