2006, Indonesia is the biggest Palm Oil producer in the world

In 2006, Indonesia has positioned itself as the biggest palm oil producer in the world, after overtaking this position from its neigboring country, Malaysia. Total production in 2006 has reached 16 million tons.

This palm oil industry has also been absorbing at least 8.5 million labor force and considered as one of the most effective way to reduce the unemployment in Indonesia.

Nevertheless, there are many rooms for improvement and opportunities in this palm oil business as well. The seed development, the new regulation of Indonesian government pertaining to the biodiesel/biofuel development and oleochemical business which is still under supply are some important issues to be addressed in palm oil industrial development.

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Biodiesel players in Indonesia

Plantations: Tens of thousands, hundreds of thousands, a million and more…
By Marianne Klute, Watch Indonesia

The Indonesian government expects that the world demand for vegetable oil will grow from 32.5 to 39 million tonnes in 2007. This would require total production to increase by 6.5 million tonnes this year. It is likely that global production can be increased by only 3.7 million tonnes. According to those calculations, there will be a deficit of 2.8 million tonnes. The global demand for palm oil biodiesel will, according to government advisers, grow from 2 million tonnes to 15-16 million tonnes. Indonesia and Malaysia , the world’s leading palm oil producers, expect to sell 800,000 tonnes more palm oil for biodiesel in 2007 than in the previous year.
(Kantor Pemasaran Bersama (KPB) PTPN, laut detikcom, 8.1.2007)

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The biggest palm oil refinery factory in the world

PT Musim Mas, the Indonesian company.

World’s largest palm oil refinery. Five palm oil refineries with a.combined capacity of 8,000 tonnes crude palm oil per day, or 2.8 million t / yr(Friends of the Earth report). Four cooking oil factories in Medan, Bekasiand Sidoario, with a production capacity of 877,000 t / yr (RainforestFoundation report).

find more at: www.musimmas.com

For complete article, find at: "Towards better practice in smallholder palm oil production" by: Sonja Vermeulen and Nathalie Goad.

http://www.rspo.org/PDF/Projects/STF/final%20IIED%20report%20on%20smallholder%20palm%20oil.pdf

What is New

Dear visitors,

Please visit our new elements:

1. Reference papers: for external sources of recent articles on palm oil.

2. Indonesian palm oil data: which will be regularly updated since August 3, 2007.