Palm oil or crude palm oil (CPO) has grown into an important commodity in Indonesia. The export of palm oil (crude palm oil / CPO) has now increased rapidly compared to other commodities. Indonesia’s palm oil exports in 2017 reached a record high over The past five years, With volumes reaching 27.35 million tons, up 20,0 percent compared to 22.75 million tons in 2016. Even the export value increased even higher, reaching 28.9% from US$ 14,365,652 thousand in 2016 to US$ 18,513,121 thousand in 2017.
Palm oil is currently transformed as a favorite commodity and is much preferred by the world, because it is easily produced and widely used in various industries such as the manufacture of cooking oil, margarine, butter, vanaspati, shortening and ingredients for making cakes, non-food through the process of hydrolysis (splitting) produces acid fat and glycerin often called oleochemicals, besides as a source of biofuel or biodiesel.
Although Indonesia is the largest palm oil producer in the world, it turns out that Indonesian palm oil products face a variety of very complicated problems namely black campaigns of deforestation, corruption, child labor, to human rights violations, so that the European Union, the United States hampers the trade of Indonesian palm products. Even India has doubled the import tax on palm oil. The Australian Senate also re-submitted the Competition and Consumer Amendment Bill (Truth in Labeling – Palm Oil).
This is a homework for businesses and the government to immediately resolve the issue. Moreover, There are quite a lot of companies involved in this business and the contribution to national income is quite large.
Considerable market potential encourages BIZTEKA to discuss further the Industrial Prospects and Marketing of the Palm Oil Industry (CPO) in Indonesia. This report is prepared based on two sources; primary and secondary data. Primary data is obtained from the palm oil industry players. While secondary data is obtained from relevant government agencies such as the Indonesian Palm Oil Association (GAPKI), The Indonesian Vegetable Oil Industry Association (GIMNI), The Central Statistics Agency, The Ministry of Agriculture and The data banks in BIZTEKA – CCI.