Palm is the origin plant from African comes into Indonesia through the Dutch VOC trading partnership, nearly 100 years ago. Palm gardens established in northern Sumatra, and the area became the central Indonesian oil palm plantation, until the early 1980s.
Seeing the great potential of palm oil, the government launched various programs such as the plantation industry development of palm is large national and private partnership program, including pattern of citizens or Nucleus Estate PIR-Trans. Thanks to these programs, supported the growth of global demand and other encouragement to this industry, the Indonesian palm oil production continues to increase. In 2006, Malaysia shifted from the throne of the world’s largest palm oil producer.
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 oil palm industry which occupies 6 percent of the total forest area of 132 million hectares, have been prospering millions of Indonesian people. Is the fact that palm oil is the only Indonesian non-oil commodities that occupy a strategic position in the constellation of world vegetable oil, considering that Indonesia is the largest producer of this commodity. Strategic, because since 2005 the oil palm has become the largest production of vegetable oil with (24%) shifts the soybean oil (23%) of the previous king of the world vegetable oil.
According to Oil World Annual 2009-2010 data, the ratio is 27.7% for palm oil and 22.4% for soybean oil, of a total of 168.8 million tons of vegetable oil. In fact, extensive palm gardens around the world only 13.1 million hectares, compared to 97.3 million acres of soybeans. This means that in one hectare of oil palm plantations, produced an average of 3.6 tons of oil, while a hectare of soybean plantations produce on average only 0.39 tons of oil. Land efficiency is possible because of palm oil is a fruit tree crops throughout the year, compared to soybeans, which is a seasonal crop.
Some countries which producing oil like the U.S. soybean oil (38%), Brazil (37%), and Argentina (15%), cautious start brunt of palm oil in world markets. Competition with other vegetable oils can not be avoided and currently appears negative campaign against palm oil. A number of the international community and local campaigns touting that palm oil as a destroyer of the environment, while some developed countries of palm oil consumers, tightening regulation of corporate palm oil production.
The rules are made and to comply with all palm oil producers, both Indonesia and other countries, so that the palm oil products accepted in the international market. Among them is the Round table on Sustainable Palm Oil (RSPO), a world institution that issued guidelines to all lines of production and distribution of world palm oil.
The institution was founded in 2004 is a guide pour palm oil production procedures that are considered sustainable, in principle and criteria of RSPO. Institutions headquartered in Zurich, Switzerland have a secretariat in Kuala Lumpur and an office in Jakarta.
As evidence of the commitment of Indonesia also produce sustainable palm oil, palm oil 72 national industries from upstream to downstream, is registered as a member of the RSPO. In addition to the RSPO, oil industry production parameters were also given by European countries through EU directives. Do not stop at international regulations, the palm oil industry explores homeland ISPO (Indonesian Sustainable Palm Oil) to produce sustainable palm oil.
ISPO is a collection of “best practices” that have made national oil palm industry, while its formulation was initiated by the Ministry of Agriculture. ISPO embrace all elements in the palm oil industry from upstream to downstream, to participate in formulating standards and regulations under the provisions of RI production. Among players in the industry itself welcomed the ISPO that its provisions are in line with the principles and objectives of the RSPO.
The future of Indonesian oil palm industry can be bright, because in addition to support global demand for vegetable oils continues increases, also because of the national production of palm oil could be upgraded with the support of the government. Technology development, especially oil palm seeds, and also the more sustainable production practices applied plural oil palm companies nationwide. Bright future is also supported by a lot of opportunity for reform and improvement of quality in operations and the national oil palm industry. Settling in here also include the ‘rules’ that must be supported and adhered to the government, companies, and oil palm farmers.
The most important point is the identification of potential land suitable for development. Here, the aspect of legal certainty needs to be correct by the government in order to provide certainty for companies trying to palm oil. Spatial planning is also reinforced and clarified to minimize land conflicts, whether related to land ownership, as well as efforts to maintain areas with high conservation value (HCVF), thus in line with sustainable business principles based on the RSPO and ISPO. Oil palm plantation area with old age (approaching 25 years old) in Indonesia is currently getting bigger. Therefore, replanting is necessary.
Palm community must be able and ready for rejuvenation, especially farmers, who in 3-4 years will not receive earnings from palm oil. Preparatory efforts started from the development of alternative income, to ease the credit manage to overthrow the plantation and replanting of oil palm estates.
The future of Indonesian palm oil industry is highly influenced by the legal certainty in the business and the success of replanting.
Moreover, the potential of palm oil increasingly exceeds the main potential as the most efficient of vegetable oil, namely as a substitute for fossil fuels.
Benefits of palm oil as an environmentally friendly renewable energy, will put palm oil became a strategic commodity in the future.
And this is an opportunity for Indonesia to strengthen its position in the global economy.