NEWSLETTER HÍRLEVÉL EMBASSY OF THE REPUBLIC OF INDONESIA – BUDAPEST 1068 Budapest, Városligeti fasor 26., HUNGARY, Tel: +36-1-413 3800, Fax: =36-1-322 8669, www.indonesia.hu , [email protected]Vol.:5/2011 20. 01. 2011 CRUDE RUDE RUDE RUDE PALM OIL: ALM OIL: ALM OIL: ALM OIL: INDONESIAN EXPORT INDONESIAN EXPORT INDONESIAN EXPORT INDONESIAN EXPORT PRIMADONNA PRIMADONNA PRIMADONNA PRIMADONNA SPECIAL REPORT O SPECIAL REPORT O SPECIAL REPORT O SPECIAL REPORT ON INDONESIAN EXPORT N INDONESIAN EXPORT N INDONESIAN EXPORT N INDONESIAN EXPORT COMMODITIES: COMMODITIES: COMMODITIES: COMMODITIES: PALM OIL PALM OIL PALM OIL PALM OIL PALM OIL PALM OIL PALM OIL PALM OIL Palm Fruits Palm fruit contains two types of oil: palm oil, which comes from the mesocarp or fleshy part of the fruit, and palm kernel oil, which comes from the seed in the fruit. Both have significant commercial values. Area Expansion Over the next few years, the pace of Indonesian palm oil production is expected to dominate other producer countries and rise steadily; assuming continued high prices and favorable weather. This continuing increase in production is a result of area expansion. It is the availability of land on Borneo and other previously non-developed areas that has allowed Indonesia to become the top producer. The current (December) USDA production forecast of 2007/08 Indonesia Palm Oil is 18.3 million tons, means 10 percent increase from last year’s estimated production of 16.6 million tons. Production of palm oil has continued to climb steadily since 1998. New regions on the islands of Sumatra, Borneo, Sulawesi and West Papua have been opened up in recent years and have added significant area that only now is coming on-stream in terms of production. In addition to new areas of land developed, another reason for the growing production numbers is that the surge in planting activity during the past ten years begins to be realized. There is several years lag time when palms are initially planted on the plantation until the first production of fruit bunches. On actual data planted area to oil palm is not easily obtained. Where government data does exist, many in the industry believe that the government data is not as complete as it might be, often having production estimates lower than those of the industry. One proxy source of area data is oil palm seed sales. Data presented at the International Palm Oil Congress 2007 on seed sales reveals a rapid increase in demand, so much that seed producers have had difficult keeping up with the demand. Oil palm is a tropical plant that produces palm oil and its derivatives, among other things, cooking oil. There are three types of oil palm plants, namely: dura, prifera, and fenera From the fruits of the oil palm we can produce the following products: Crude palm oil, Palm kernel oil, Kernel cake, Pre-treated palm oil, Crude palm fatty, Palm acid oil, and Crude palm kernel fatty acid Most of coconut plantations in Indonesia are the people’s farm operations, where in certain regions in Sulawesi, Maluku and Riau, copra is main source of income of the local community. On the contrary, oil palm plantations are operated by State-owned companies (PTPN), national and foreign private companies in cooperation with surrounding farmers in plasma system. Major production centers of palm oil are found in Sumatra, while production centers of copra are found in several provinces. Nationally, the domestic production of cooking oil has been able to fulfill the domestic need. However, due to the cycle of production in certain months, the palm oil production is not yet able to meet domestic need for cooking oil. The domestic need for cooking oil is 80% fulfilled by palm oil, while the remaining 20% is met by coconut oil and other vegetable oils. Palm oil and coconut oil and their derivatives are main Indonesian export commodities, contributing quite significant foreign exchange earnings in the agricultural industry sector. Price fluctuation that occurred as a result of various changes in price forming indicators such as the increase of vegetable oil price in international market, exchange rate of dollar, and the impact of policies introduced by palm oil importing countries, has pushed the government to carry out market intervention through various policies of palm and coconut oils and their derivatives, such as to introduce export tax. However, the policies introduced have been adjusted to current development Oil palm plants were initially brought in by British Governor General Sir Thomas Stanford Raffles to be cultivated in Indonesia. Now, it has become a reliable…….
Transcript
NEWSLETTER
HÍRLEVÉL
EMBASSY OF THE REPUBLIC OF INDONESIA – BUDAPEST 1068 Budapest, Városligeti fasor 26., HUNGARY, Tel: +36-1-413 3800, Fax: =36-1-322 8669, www.indonesia.hu, [email protected]
INDONESIAN EXPORT INDONESIAN EXPORT INDONESIAN EXPORT INDONESIAN EXPORT
PRIMADONNAPRIMADONNAPRIMADONNAPRIMADONNA
SPECIAL REPORT OSPECIAL REPORT OSPECIAL REPORT OSPECIAL REPORT ON INDONESIAN EXPORT N INDONESIAN EXPORT N INDONESIAN EXPORT N INDONESIAN EXPORT COMMODITIES:COMMODITIES:COMMODITIES:COMMODITIES:
PALM OILPALM OILPALM OILPALM OIL
PALM OILPALM OILPALM OILPALM OIL
Palm Fruits
Palm fruit contains two types of oil: palm oil, which comes from the mesocarp or fleshy part of the fruit, and palm kernel oil, which comes from the seed in the fruit. Both have significant commercial values.
Area Expansion
Over the next few years, the pace of Indonesian palm oil production is expected to dominate other producer countries and rise steadily; assuming continued high prices and favorable weather. This continuing increase in production is a result of area expansion. It is the availability of land on Borneo and other previously non-developed areas that has allowed Indonesia to become the top producer. The current (December) USDA production forecast of 2007/08 Indonesia Palm Oil is 18.3 million tons, means 10 percent increase from last year’s estimated production of 16.6 million tons. Production of palm oil has continued to climb steadily since 1998. New regions on the islands of Sumatra, Borneo, Sulawesi and West Papua have been opened up in recent years and have added significant area that only now is coming on-stream in terms of production. In addition to new areas of land developed, another reason for the growing production numbers is that the surge in planting activity during the past ten years begins to be realized. There is several years lag time when palms are initially planted on the plantation until the first production of fruit bunches. On actual data planted area to oil palm is not easily obtained. Where government data does exist, many in the industry believe that the government data is not as complete as it might be, often having production estimates lower than those of the industry. One proxy source of area data is oil palm seed sales. Data presented at the International Palm Oil Congress 2007 on seed sales reveals a rapid increase in demand, so much that seed producers have had difficult keeping up with the demand.
Oil palm is a tropical plant that produces palm oil and its derivatives, among other things, cooking oil. There are three types of oil palm plants, namely: dura, prifera, and fenera
From the fruits of the oil palm we can produce the following products: Crude palm oil, Palm kernel oil, Kernel cake, Pre-treated palm oil, Crude palm fatty, Palm acid oil, and Crude palm kernel fatty acid
Most of coconut plantations in Indonesia are the people’s farm operations, where in certain regions in Sulawesi, Maluku and Riau, copra is main source of income of the local community. On the contrary, oil palm plantations are operated by State-owned companies (PTPN), national and foreign private companies in cooperation with surrounding farmers in plasma system.
Major production centers of palm oil are found in Sumatra, while production centers of copra are found in several provinces. Nationally, the domestic production of cooking oil has been able to fulfill the domestic need. However, due to the cycle of production in certain months, the palm oil production is not yet able to meet domestic need for cooking oil. The domestic need for cooking oil is 80% fulfilled by palm oil, while the remaining 20% is met by coconut oil and other vegetable oils.
Palm oil and coconut oil and their derivatives are main Indonesian export commodities, contributing quite significant foreign exchange earnings in the agricultural industry sector.
Price fluctuation that occurred as a result of various changes in price forming indicators such as the increase of vegetable oil price in international market, exchange rate of dollar, and the impact of policies introduced by palm oil importing countries, has pushed the government to carry out market intervention through various policies of palm and coconut oils and their derivatives, such as to introduce export tax. However, the policies introduced have been adjusted to current development
Oil palm plants were initially brought in by British Governor General Sir Thomas Stanford Raffles to be cultivated in Indonesia. Now, it has become a reliable…….
INDONESIAN EXPORT INDONESIAN EXPORT INDONESIAN EXPORT INDONESIAN EXPORT
PRIMADONNAPRIMADONNAPRIMADONNAPRIMADONNA
Indonesian export commodity, particularly from North Sumatra Province. To complete the plant collection, Sir Thomas Raffles brought in a kind of palm called dura, which is later known as oil palm. The first Indonesian oil palm plantation was developed in 1911 in eastern coast of North Sumatra. A few years later, English entrepreneurs carried on small-scale oil palm plantations in the region. In 1915, an oil palm plantation of 2,715 hectares was established and had been expanded to exceed 100,000 hectares in 1939. The glory of the past is still going on until now. Rows of oil palm plants are still growing rapidly in a total area of over 3,000,000 hectares spread over regions in North Sumatra, Aceh, and South Sumatra.
The climbing up of petroleum prices from below 30 US dollars to approaching 150 US dollars per barrel in the mid of 2008 has caused the world to seek for and develop other sources of energy, among others, bio-energy including palm oil. This has pushed the opening of more than thousands of hectares of new oil palm plantations, mainly in Sumatra and Kalimantan.
Out of the oil palm plantations that scatter all over Indonesia, the large-scale plantations are found in North Sumatra, West Sumatra, South Sumatra, Central Kalimantan, North Sulawesi, Riau, Lampung, and Jambi.
The growth of world’s production of palm oil in the last two decades reached 7.3% per year. The development of the world’s palm oil has been very much influenced by the production of palm oil in Malaysia and Indonesia, which contributes 80% or the world’s production.
Palm oil is one of Indonesian major export commodities that contributes quite substantial amount of foreign exchange from agricultural sector. As a matter of fact, the group of palm oil & its fractions, not chemically modified (HS 1511), has the largest contribution in non-oil export earnings. Export of this group in 2007 reached US$ 7,868.6 million, while in 11 months of 2008 (January-November 2008), its export value already reached US$ 11,640.6 million, or increased by 78.51% compared to the same period in 2007 valued at US$ 6,520.8 million.
For many years, Malaysia had been the world largest exporter of crude palm oil (CPO). However, since the last few years Indonesia has replaced Malaysia as the largest exporter of CPO in the world. In fact, Indonesia has exported its CPO to Malaysia to be processed there into various derivative products.
Exports of Indonesian CPO in 2008 reached US$ 6,561.3 million. It has been exported to more than 70 countries around the world. The largest market in 2008 was India, which imported Indonesian CPO with a value of US$ 3,294.4 million. It was followed by Netherlands (US$ 786/7 million); Malaysia (US$ 446.7 million); Singapore (US$ 409/5 million); Italy (US$ 260.6 million): Germany (US$ 247.9 million); China (US$ 240.1 million); Pakistan (US$ 217.6 million); Ukraine (US$ 159.8 million); and Egypt (US$ 116.5 million). Other countries that imported Indonesian CPO with a value less than 100 million but above 1 million US dollars in 2008 were: Bangladesh, Spain, Vietnam, Czech, Slovakia, Tanzania, Greece, Ivory Coast, Nigeria, Sri Lanka, Saudi Arabia, United Kingdom, Ghana, Morocco, Turkey, Denmark, France, Mozambique, and Cameroon.
In addition, Indonesia has also exported palm kernel oil. In 2008 exports of Indonesian palm kernel oil reached US$ 1,172.2 million, and the 10 major markets included: Netherlands (US$ 413.04 million); Malaysia (US$ 265.5 million); China (US$ 216.9 million); India (US$ 128/6 million); Ukraine (US$ 25.9 million); Italy (US$ 21.5 million); United States (US$ 14.7 million); Egypt (US$ 9.8 million); Germany (US$ 9.5 million); and Singapore (US$ 8.4 million). Other countries that have imported palm kernel oil from Indonesia in 2008 with a value of more that 1 million US dollars were Spain, Jordan, Bangladesh, Japan, Turkey, Pakistan, Brazil, Tunisia, Mexico, Greece, Sri Lanka, and Ivory Coast. (Sources: BPS – ITC Trade Map – NAFED).
FOOD & HOTEL FAIR 2011
Date : April 16th - 19th, 2011 Venue : Jakarta International Expo (JIExpo),
JAKARTA, Indonesia Organizer : PT. Pamerindo Buana Abadi Deutsche Bank Building 13th floor
