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Indonesia's Palm Oil Industry Overview

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Indonesia is the largest Palm Oil exporter in the world. People currently are conscious with the consumption of palm oil because of the negative effect of palm oil industry. Indonesian Government tackled this challenge by publish several regulations.

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Indonesia's Palm Oil Industry Overview

  1. 1. Indonesia’s Palm Industry Overview
  2. 2. Palm Oil • A type of vegetable oil that is produced from the fruit of oil palm (Elaeis guineensis) • Production of Palm Oil takes place in Borneo and Sumatra’s rainforest. It has a suitable light, humidity, and fertile soil that makes palm oil grows well in Indonesia. • It is used for production of cooking oil, soap, margarine, biodiesel, soap, etc.
  3. 3. Indonesia : Largest Exporter of Palm Oil • More than 50% of palm oil used worldwide comes from Indonesia • Palm oil contributes 8.9% of total export from Indonesia • Palm oil as major contributor for GDP Growth rate • Around 2.7% labour force created from palm oil industry
  4. 4. Negative effect of Palm Oil Industry • Deforestation: Palm oil industry burns the rainforest to create a new field for palm oil plantation • Destroy habitat for endangered species • Air pollution, haze
  5. 5. Indonesian Government Action to Encounter the Challenges 1. B15 Program – A Program to blend 15% biodiesel to diesel fuel. • It aims to decreases the consumption of imported diesel fuel • Reduce carbon dioxide emission by 29% 2. Cruse Palm Oil (CPO) Fund - The fund will be collected at rate USD$50 per ton of CPO and USD$20-30 per ton of processed palm oil that are sold. - The fund that is collected will be used for research and development of biodiesel, subsidize B15 program, and also for replanting older palm oil trees and other trees that belong to community to build Indonesia’s rain forest again.
  6. 6. Palm Oil Chemicals RBD Palm Oil RBD Palm Olein RBD Palm Stearin RBD Palm Kernel Oil RBD Palm Kernel Olein RBD Palm Kernel Stearin
  7. 7. Palm Oil Chemicals Palm Acid Oil Palm Fatty Acid Distillates To buy these palm oil chemicals and other derivatives of palm oil chemicals, you can visit Tradeasia’s website to get more information (www.chemtradeasia.com) Tradeasia International Pte. Ltd. Is a global trading organization providing integrated procurement services with a level of certainty and trust, which makes Tradeasia stands unique

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