Oil Palm and Palm Oil
What is it?
Division : Embryophyta Siphonagama
Class : Angiospermae
Ordo : Monocotyledonae
Family : Arecaceae (previously palmae)
Subfamily : Cocosoideae
Genus : Elaeis
Species :
Elaeis guineesis Jacq.
Elaeis oleifera (H.B.K) Cortes
Elaeis odora
Questions?
- Why demand for CPO and FFB high?
- Why palm oil dominant in vegetable oil market?
- Who are the consumers of FFB, CPO and its derivative products?
- Who are the suppliers of FFB and CPO?
- How strategic is palm oil to Indonesia?
- What are positive externalities of oil palm sector?
- What are negative externalities of oil palm sector?
- How the market response to these externalities?
- How the government of Indonesia response to these externalities?
- The future of palm oil sector? The prospects and the challenges.
Palm Oil Products
- Most important vegetable oil in the global oils and fats industry.
- Found in more than 50% of packaged products in supermarket.
- Used in food and non food.
- Food: cooking oil, margarine, ice cream, cookies, and chocolate.
- Non-food: soaps, detergents, cosmetics, pharmaceuticals, and biofuels.
- Brands: KitKat, Dove, Persil, Flora, etc.
Fig 1. Oil Palm Products and Its Derivatives
Fig 2. CPO & KPO for Oleochemical
Fig 3. Oil Palm Producers’ Countries
Challenges & Opportunities
Economic Issues
Challenges:
Yield gaps
Declining prices and rising cost
Poor uptake of certified sustainable palm oil (CSPO)
Opportunities:
Closing the yield gap
Raising the productivity of smallholders
Environmental Issues
Challenges:
Deforestation
Biodiversity loss [use of High Conservation Value (HCV) areas]
Climate change [use of High Carbon Stock (HCS) areas]
Use of peatland
Use of chemical products [pesticides, herbicides and fertilizers]
Opportunities:
Moratorium on deforestation
Moratorium on new planting of oil palm
Use of degraded land
Mechanisms for reducing GHG emissions
REDD+
Market transformation
Social Issues
Challenges:
Land right, land use and land acquisition
Indigenous people and local communities
Smallholders
Plantation workers
Child labour
Security issues
Opportunities:
Legal land reforms
Institutional support for the smallholder sector
Supporting smallholders for certification
Use of smaller mills
Promoting integrated farming
Government Issues
Challenges:
Governments
International institutions
Multi-stakeholder platforms
Civil society organizations
Corporations
Opportunities:
Public-private CSO partnership for sustainability
Positive externalities:
1. Palm oil is the most productive vegetable oil worldwide
2. High efficiency per ha
3. Downstream industries (food and oleochemical industries)
4. Found in various products (soap, cosmetics, foods, etc.)
5. Renewable raw material for biodiesel and bioenergy
If Palm Oil produced sustainably:
1. Promote rural development
2. Creating jobs
3. Ensuring social security
4. Increase the income of smallholders
5. Contribute to the reduction of GHG emission
Negative externalities:
1. Destruction of rain forests and biodiversity
2. Expansion of vast monocultures
3. Increasing GHG emissions
4. Displacement of farmers
5. Land-use conflicts
6. Exploitation of smallholders
7. Unfavourable working conditions in the palm oil industry
Future Questions?
(Vermeulen, 2008)
- What is the future for oil palm smallholder in modern market system?
- Does modern market system distribute equal and proportional welfare along the palm oil value chain?
- Does smallholder benefit from certification scheme?
- Who are actors responsible to empower oil palm smallholders?
- What should be done?
- How to find better ways for the inclusion of small-scale producers in the modern markets?
References
Arifudin, Ashaluddin Jalil, Haris Gunawan, dan Suwondo. 2014. Modul Pengelolaan Hutan dan Lahan Gambut Berkelanjutan. BP REDD+ dan Universitas Riau. p.116.
Corley, R.H.V. and P.B. Tinker. 2003. The Oil Palm. Fourth Edition. Blackwell Science, Oxford.
Fairhurst, Thomas and Rolf Härdter. 2003. Oil Palm: Management for Large and Sustainable Yields. Potash & Phosphate Institute (PPI), Potash & Phosphate Institute of Canada (PPIC) and International Potash Institute (IPI).
Fauzi, Yan, Yustina E. Widyastuti, Iman Satyawibawa, dan Rudi H. Paeru. 2012. Kelapa Sawit. Penebar Swadaya, Jakarta. p.236.
Hakim, Memet. 2013. Kelapa Sawit: Teknis Agronomis & Manajemen. Media Perkebunan, Jakarta. p.377.
Pahan, Iyung. 2012. Panduan Lengkap Kelapa Sawit: Manajemen Agribisnis dari Hulu hingga Hilir. Penebar Swadaya, Jakarta. p.411.
Pardamean, Maruli. 2011. Cara Cerdas Mengelola Perkebunan Kelapa Sawit. Penerbit Andi, Yogyakarta.
Rafiq, Rukaiyah, Asri Jon Tanjung, Jalal Sayuti, Endy Prihartono, dan Sahadi. 2010. Buku Saku Pendampingan dan Pemberdayaan Petani Mandiri Menuju Kehidupan Berkelanjutan. “Catatan Pengalaman Pendampingan Petani Kelapa Sawit Mandiri/Swadaya di Kabupaten Merangin, Provinsi Jambi”. Dinas Provinsi Jambi. p.53.
Rankine, Ian and Fairhurst, Thomas. Nursery. Field Handbook. Oil Palm Series. Volume 1. Potash & Phosphate Institute, Potash & Phosphate Institute of Canada, East & Southest Asia Programs, Singapore.
Rankine, Ian and Fairhurst, Thomas. Mature. Field Handbook. Oil Palm Series. Volume 3. Potash & Phosphate Institute, Potash & Phosphate Institute of Canada, East & Southest Asia Programs, Singapore.
Rankine, Ian and Fairhurst, Thomas. Immature. Field Handbook. Oil Palm Series. Volume 2. Potash & Phosphate Institute, Potash & Phosphate Institute of Canada, East & Southest Asia Programs, Singapore.
Suwarto dan Yuke Octavianty. 2010. Budidaya 12 Tanaman Perkebunan Unggulan. Penebar Swadaya, Jakarta. p.260.
Vermeulen, S. (2008). Chain-wide learning for inclusive agrifood market development.
Other references:
- Clay, J. W. (2004). World agriculture and the environment: A commodity-by-commodity guide to impacts and practices. USA: World Wildlife Fund.
- Fairhurst, T., & McLaughlin, D. (2009). Sustainable Oil Palm Development on Degraded Land in Kalimantan. Washington, DC USA: World Wildlife Fund.
- Focus on Finance News. (2001). “Dutch banks commit to forest conservation.”. Retrieved from http://www.Forest.org website:
- Garrity, D. P., Soekardi, M., Van Noordwijk, M., de la Cruz, R., Pathak, P. S., Bunasena, H. P. M., Majid, N. M. (1997). The Imperata Grasslands of Tropical Asia: Area, Distribution, and Typology. In D. P. Garrity (Ed.), Agroforestry Innovations for Imperata Grassland Rehabilitation. (pp. 3-29). Dordrecht: Kluer Academic Publishers.
- Hooijer, A., Silvius, M., Wosten, H., & Page, S. (2006). “Peat-CO2: Assessment of CO2 emissions form drained peatlands in SE Asia”: Delft Hydraulics report Q3943.
- Kartawinata, K., Riswan, S., Gintings, A. N., & Puspitojati, T. (2001). An overview of post-extraction secondary forests in Indonesia. Journal of Tropical Forest Science, 13, 621-638.
- Kartodihardjo, H., & Supriono, A. (2000). The Impact of Sectoral Development on Natural Forest Conversion and Degradation: The Case of Timber and Tree Crop Plantations in Indonesia. Indonesia: Center for International Forestry Research.
- Kurniawan, A. (2004). Tinjauan Ekonomi Industri Kelapa Sawit. Medan: Pusat Penelitian Kelapa Sawit.
- Nawir, A., Murniati, & Rumboko, L. (2007). Forest rehabilitation in Indonesia. Where to after more than three decades? (pp. 269). Jakarta: CIFOR.
- Rautner, M., Haridiono, M., & Alfred, R. (2005). Borneo: Treasure island at risk – Status of forest, wildlife and related threats on the island of Borneo. Germany: WWF Germany.
- Rowell, A., & Moore, P. F. (2000). “Global review of forest fires”: WWF International & The World Conservation Union (IUCN).
- RSPO. (2007). RSPO Principles and Criteria for Sustainable Palm Oil.
- RSPO. (2009). RSPO Principles and Criteria for Sustainable Palm Oil Production: Guidance on Scheme Smallholders. Kuala Lumpur: RSPO Task Force on Smallholders.
- RSPO. (2010). RSPO Principles and Criteria for Sustainable Palm Oil Production: Guidance for Independent Smallholders under Group Certification. Jakarta: RSPO Task Force on Smallholders.
- Stern, N. (2006). Stern Review: The Economics of Climate Change. Cambridge, UK.: Cambridge University Press.
- Teoh, C. H. (2010). Key Sustainability Issues in the Palm Oil Sectors. [A Discussion Paper for Multi-Stakeholders Consultations (commisioned by the World Bank Group)].
- Tjitrosoedirdjo, S. (1993). Imperata cylindrica grasslands in Indonesia. In R. Vandenbeldt (Ed.), Imperata grasslands in Southeast Asia: Summary reports from the Philippines, Malaysia and Indonesia. Bangkok: Winrock International and USAID.
- Uryu, Y., & 15 co-authors. (2008). “Deforestation, forest degradation, biodiversity loss and CO2 emissions in Riau, Sumatera, Indonesia”. Indonesia: WWF Indonesia Technical Report.
- Vermeulen, S., Woodhill, J., Proctor, F., & Delnoye, R. (2008). Chain-Wide Learning for Inclusive Agrifood Market Development: A guide to multi-stakeholder process for linking small-scale producers to modern markets: International Institute for Environment and Development, London, UK and Wageningen University and Research Centre, Wageningen, The Netherlands
References (PPKS Booklets):
Darmosarkoro, Witjaksana, M. Lukman Fadli, and Akiyat. 2004. Kelainan-kelainan pada Kelapa Sawit: Kecambah, Pre-Nursery, dan Main Nursery. Buku 1. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Darmosarkoro, Witjaksana, Iman Yani Harahap and M. Lukman Fadli. 2004. Kelainan-kelainan pada Kelapa Sawit: Tanaman Belum Menghasilkan dan Tanaman Menghasilkan. Buku 2. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Darmosarkoro, Witjaksana, Edy Sigit Sutarta, Sugiyono, Nuzul Hijri Darlan, and Hasril Hasan siregar. 2005. Peningkatan Efectivitas Pemupukan Kelapa Sawit. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Edy, R. Purnomo, Sriwijaya, Agus Susanto, Edy Sigit Sutarta, Iman Yani Harahap, Azhar Fadillah Lubis, Agus Eko Prasetyo, and Ahmad P. Dongoran. 2007. Mucuna Bracteata sebagai Tanaman Pengendali Gulma: Perbanyakannya dengan Stek dan Biji di Indonesia. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Erningpraja, Luqman, and Darnoko. 2005. Pengelolaan Limbah Pabrik Kelapa Sawit Ramah Lingkungan. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Fadli, M. Lukman, Edy Sigit Sutarta, Petrus Purba, Sugiyono, Witjaksana Darmosarkoro, and Eko Noviandi Ginting. 2006. Kelapa Sawit pada Lahan Gambut. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Fadli, M. Lukman, Edy Sigit Sutarta, Witjaksana Darmosarkoro, Petrus Purba, Eko Novianding Ginting. 2006. Panen pada Tanaman Kelapa sawit. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Harahap, Iman Yani, Yusran Pangaribuan, Hasril Hasan Siregar, and Eka Listia. 2005. Lingkungan Fisik Perkebunan Kelapa Sawit. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Nurkhoiry, Ratnawati, Teguh Wahyono, Ambar Kurniawan, Iman Yani Harahap, and Arsyad D. Koedadiri. 2006. Pedoman Norma Kerja Perkebunan Kelapa Sawit pada Lahan Mineral: Pembukaan Lahan, Pembibitan, dan Penanaman. Buku 1. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Nurkhoiry, Ratnawati, Teguh Wahyono, Ambar Kurniawan, Iman Yani Harahap, and Arsyad D. Koedadiri. 2006. Pedoman Norma Kerja Perkebunan Kelapa Sawit pada Lahan Mineral: Pemeliharaan TBM, Pemeliharaan TM, dan panen. Buku 2. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Prawirosukarto, Sudharto, Endang Syamsuddin, Witjaksana Darmosarkoro, dan Amir Purba. 2005. Tanaman Penutup Tanah dan Gulma pada Kebun Kelapa Sawit. Buku I. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Prawirosukarto, Sudharto, Endang Syamsuddin, Witjaksana Darmosarkoro, dan Amir Purba. 2005. Tanaman Penutup Tanah dan Gulma pada Kebun Kelapa Sawit. Buku II. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Purba, Abdul Razak, Edy Suprianto, Yurna Yenni, Sujadi, Nanang Supena. 2005. Karakteristik Bahan Tanaman Unggul PPKS dan Pola Pengelompokannya di Pembibitan. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Purba, Petrus, Edy Sigit Sutarta, M. Lukman Fadli, Arsyad D. Koedadiri, Suroso Rahutomo, and Agus Susanto. 2005. Pemeliharaan Tanaman Kelapa Sawit Belum Menghasilkan. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Purba, Rolettha Y., Agus Susanto, and Sudharto Prawirosukarto. 2005. Hama-hama pada Kelapa Sawit: Serangga Hama pada Kelapa Sawit. Buku 1. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Purba, Petrus, Witjaksana Darmosarkoro, M. Lukman Fadli, Edi Sigit Sutarta, Sugiyono, and Dhimas Wiratmoko. 2006. Pembukaan Lahan dan Penanaman Kelapa Sawit. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Siregar, Hasril Hasan, Endang Syamsuddin, Witjaksana Darmosarkoro, and Nuzul Hijri Darlan. 2005. Kebakaran dan Asap pada Lahan Kelapa sawit. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Siregar, Hasril Hasan, Nuzul Hijri Darlan, Taufik Caesar Hidayat, Witjaksana Darmosarkoro, and Iman Yani Harahap. 2006. Hujan sebagai Faktor Penting untuk Perkebunan Kelapa Sawit. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Siregar, Hasril hasan, Iman Yani Harahap, Witjaksana Darmosarkoro, Edy Sigit Sutarta, and Endang Syamsuddin. 2005. Antisipasi dan Penanggulangan Pengaruh Kekeringan pada Kelapa Sawit. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Susanto, Agus, Sudharto Prawirosukarto, and Fahrida Yanti. 2005. Konservasi dan Perbanyakan Musuh Alami Hama, Penyakit, dan Gulma Kelapa Sawit. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Susanto, Agus, Rolettha Y. Purba, and Sudharto Praworosukarto. 2005. Hama-hama pada Kelapa Sawit: Hama-hama Vertebrata Kelapa Sawit. Buku 2. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Susanto, Agus, Rolettha Y. Purba, and Agus Eko Prasetyo. 2007. Elaeidobius Kamerunicus: Serangga Penyerbuk Kelapa Sawit. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Susanto, Agus, Relettha Y. Purba, Ahmad P. Dongoran, Azhar Fadillah Lubis, and Agus Eko Prasetyo. 2008. Pestisida di Perkebunan Kelapa Sawit. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Sutarta, Edy Sigit, Petrus Purba, Amir Purba, B.H. Sitanggang, and Nuzul Hijri Darlan. 2005. Pemeliharaan Tanaman Kelapa Sawit Menghasilkan. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Winarma, Edy Sigit Sutarta, and Sugiyono. 2005. Pedoman Pengambilan Contoh Daun dan Tanah pada Tanaman Kelapa Sawit. Pusat Penelitian Kelapa Sawit (PPKS) Medan.
Winarma, Eko Novianding Ginging, Edy Sigit Sutarta, and Petrus Purba. 2005. Teknik Pengawetan Tanah dan Air di Perkebunan Kelapa Sawit. Pusat Penelitian Kelapa Sawit (PPKS) Medan.