First

Edition

Fa cts o f
Indonesian
Oil Palm
Facts of Indonesian Oil Palm

By :
Indonesia Palm Oil Advocacy Team - Indonesian Palm Oil Board (TAMSI-DMSI)

Photo by:
InfoSAWIT

© 2010, Indonesia Palm Oil Advocacy Team - Indonesian Palm Oil Board (TAMSI-DMSI)

Preface
F
irst of all we would like to thank God Almighty, for having blessed
us with health and patience, so that this book, entitled “ Facts Of
Indonesian Oil Palm” can be completed. The book is prepared in
an effort to disseminate information about the development of
Indonesian oil palm industry to the public in general, so that public can actively participate
in helping the stakeholders of oil palm industry in the advancement of the oil palm
industry in the future.
The development of sustainable Indonesian oil palm industry is very important,
since oil palm is one of the biggest contributors to the state foreign currency earnings
in Indonesia. Indonesian oil palm has become one of the important pillars for the
development of welfare for the farmers, regional development, as well as to the national
economic development.
Several parties, individual and organizations, have contributed a lot during the
preparation of this book, namely academic, researchers, industry players, and other
stakeholders of oil palm industry. Therefore, we are very indebted to them.
Even though we have tried for the best, we realize that this book is still incomplete, and
may still contain some mistakes, so that we warmly invite some comments and suggestions
for the improvement of the book in the upcoming edition. Thank you.
Jakarta, December 2010
Indonesian Palm Oil Advocacy Team (TAMSI)
Indonesian Palm Oil Board (DMSI)
4 5
Oil Palm for World Prosperity
Message from the Chairman of
the Indonesian Palm Oil Board
Franky Oesman Widjaja
O
il palm is a blessing for Indonesia. Global and national demands of
vegetable oil for food and non-food products, as well as energy, will
continue to increase. Palm oil possesses more advantages compared to
other vegetable oils from the aspects of the products diversity which can
be produced, nutrition, health, productivity, efficiency, and even pricing, which is
very competitive to meet existing demands. Indonesia is also blessed with a suitable
climate, fertile lands and manpower which allow Indonesia to continue developing
the oil palm industry as one of the engine for development.
The palm oil industry has become one of the main pillars of Indonesian economic
development. This fact is indisputable, given that foreign exchange earnings and
government revenues contributed by this industry are very significant. In 2009, the
export value of crude palm oil and its derivatives reached US$9.14 billion, or more
than 10% of the total value of non-oil and gas exports. State revenues generated by
the oil palm industry include export tax, corporate income tax, property tax (PBB),
value added tax and others which are also providing significant contribution to the
country. Apart from being a major contributor for foreign exchange, the oil palm
industry’s development is in line and supports the government’s program, which is
pro-jobs, pro-poor, pro-growth and pro-environment.
Pro-Jobs, in which the development of every additional 1,000 hectares of oil
palm industry could provide employment for 500 manpower in the on-farm, off-farm
and supporting sectors which consisted of not only crude laborers but also highly
educated employees with at least bachelor degrees. With a broad composition of
4 million hectares of companies owned plantations and 3.3 million hectares of oil
palm plantations owned by smallholders and the supporting industries, the industry
employed around 4 million manpower. Therefore, there are approximately 16 million
people who are reliant upon the oil palm industry.
 Content
Pro-Poor, in which the smallholders’ development program has transformed
plantation workers into becoming plantation owners with higher income compared
to the Provincial Minimum Wages (UMP). The Nucleus-Estate Smallholders (PIR) related
to Transmigration ( Trans) and Local Community (LOK) and the Prime Cooperative
Credit for Members (KKPA) program have given the plantation community ownership
and then as a group/institution they created partnership with companies. The larger
income has also stimulated the growth of self-financing farmers, and therefore both
the incomes of program-farmers and self-financing farmers are generally much higher
than the minimum wage.
Pro-Growth, in which the development of the oil palm industry has contributed
in opening a region for growth and stimulates the economic growth in other sectors.
The oil palm industrial development in remote areas had opened the isolated regions,
and therefore the access to and from other areas would be easier. The presence of the
palm oil industry has also stimulated the growth of other industries in self-reliance and
Corporate Social Responsibility, such as transportation, workshops industry, trade, and
even in national scale such as the fertilizer industry, financial industry, heavy equipment
industry and other industries. In addition, government revenues from these industries
are in a large numbers that will increase the allocation of central funds for regional
development to create prevalent national development.
Although the national oil palm industry has exhibited good performance in
economic growth and social development, there are many challenges and obstacles
which must be faced. Sustainability issues and social conflicts still have the potential to
inhibit the growth and reduce the competitiveness of the Indonesian palm oil industry.
Preface 4
Therefore, accurate information should be disseminated so that the community won’t Message from the Chairman of DMSI 5
be affected by misleading information which could lead to loss of opportunity to take
advantage of the blessings from God Almighty to the nation that we love. Chapter I Indonesia Palm Oil Profile 8
On that basis, the Indonesian Palm Oil Board (DMSI) asks the researchers, academics
Chapter II Indonesia Palm Oil Industry 20
and the media as the stakeholders of oil palm industry, to deliver accurate and
comprehensive information to the Indonesian people and to the world through a book Chapter III Economy Added Value of Oil Palm 30
“Fakta Kelapa Sawit Indonesia”. Therefore, DMSI would like to send our best gratitude
and high appreciation to all parties who have helped the preparation of this book. Chapter IV Contribution of Oil Palm for Economy 34
Hopefully, this book can be useful for the development of sustainable palm oil industry
Chapter V Contribution of Oil Palm for Health 38
in the future.
Chapter VI Contribution of Oil Palm
Jakarta, 10 November 2010.
for Social and The Environment 46
Chapter VII Contribution of Oil Palm for Co2
Emission Reduction 60

Franky Oesman Widjaja

Chairman of the Indonesian Palm Oil Board

6 7
 Facts
Facts of
of Indonesian
Indonesian Oil Palm
Oil Palm

Fact 1
The oil palm, Elaeis guineensis Jacq. is
indigenous to West Africa, where the main
palm belt ran from Angola to Liberia Regions.
Source : Mangga Barani (2009)

Fact 2
In Archaeology notes, there is evidence that

Photo: PPKS
palm oil has been used in Abydos, Egypt since
5000 years ago.
Source : Friedel (1897)

Fact 3
Four oil palm seeds from
Bourbon (Mauritius)
planted in Bogor Botanical
Garden in 1848 were
the main seeds of all
commercial oil palm plant
in Indonesia and Malaysia.
Source : Pamin (1998)

Fact 4
Oil palm was planted
on commercial scale in

Photo: PPKS
Liput River (Aceh) and
Radja Island (Asahan,
North Sumatera) in 1911.

Chapter I. East Sumatera Coast,

especially Deli, became

Indonesian
the production center of palm oil by the Dutch colonial government. In Japanese
colonial era 16% of oil palm land was converted into food land.
Source : Badrun (2010)

Palm Oil Profile Fact 5

The development of smallholder began at the new order era in the late of
1970’s using the World Bank loan. But the efforts to accelerate the development
of oil palm smallholder was initiated the early 1980s through a Nucleus Estate
Smallholder (NEC) series project.
Source: InfoSAWIT Data Centre (2010)

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Facts of Indonesian Oil Palm Facts
Facts of
of Indonesian
Indonesian Oil Palm
Oil Palm

Fact 7
Fact 6 Palm oil trees in Indonesia consists of three varieties, namely Dura, Pisifera, and
Oil palm is a monoecious crop that has fibrous roots. The height growth of Palm oil
Tenera which are classified according to endocarp or shell thickness and mesocarp
tree is ranging from 35-75 cm per year, so that at the age of 25 years, the height of
content.
plant may reach 15-18 m. Source: Hariyadi (2010)
Source: InfoSAWIT Data Centre (2010)

Palm Oil Morphology Leaf

The leaves are compound leaves. Dark green-
Palm mesocarp
colored leaves and midrib slightly younger.
It’s appearance is very similar to the skin of Pressing will produce
plants, only with thorns are not too hard and Crude Palm Oil (CPO)
sharp. Palm leaf consists of several parts :
a) A collection of children leaves (leaflets’s)
which has a strand of (the lamina) and the
bones of the child leaves (stem)
b) Rachis constitute the place child leaves
attached
c) Petiole leaf stalks that are part of the
leaves and stems Palm kernel
d) Leaf sheath (sheath) that serves as Pressing will produce
protection from the bud and give strength Crude Palm Kernel Oil (CPKO)
to the stem.

Leaf area increased progressively at the
age of about 80-10 years after planting.
Potential Land Area of Oil Palm Plantations
Fruit Fact 8
Potential
Distribution of types of fruit based on fruit Topographical conditions and Provinces
Land Area (Ha)
skin color are grouped into three types :
1. Nigrencens,is purple to black at a young the types of soil in Indonesia
age and turn into orange-black when ripe. which are podzolic, alluvial and North Sumatera 1,298,000
This type is most predominantly found
in Tenera commercial varieties grown in latosol especially in Sumatera, Riau 2,848,200
Indonesia.
2. Virescens, is green when youngest
Kalimantan, Sulawesi and Bengkulu 728,479
and becoming reddish orange, but tip Papua islands are very suitable West Kalimantan 3,671,100
dkimages

Root
The roots fiber of palm oil
plantations consists of roots of
primary, secondary, tertiary and
quaternary. Main functions : 1.
Supporting structures above
ground stem, 2. Absorb water
and nutrient elements from the
soil, 3. As one tool respiration.
3. Albescens, whitish at a young age, after
Stem
Stems of plants covered with old
leaf midrib until about age 11 – 15
years. After that age, former dry
midrib separated from each other
and becomes similar to coconut crop.
Generally, in addition to stem height
up to 35-37 cm a year, depending
on environmental conditions and
genetic diversity.
constant greenness.
for the business development Central Kalimantan 3,638,500
being cooked becoming yellow and of oil palm plantations .
black-purple edges.
Source: Pusat Penelitian Tanah dan East Kalimantan 4,399,400
Palm fruit clustered in bunches emerging
from each midrib. The fruit consists of the Agroklimat (1993) Central Sulawesi 146,300
pericarp is wrapped by the exocarp (fruit
skin), mesocarp (fruit fiber) and endocarp South Sulawesi 288,000
(shell).
The chemical composition of palm oil in
Papua 5,896,500
mesocarp (crude palm oil CPO) is different Total Area of Potential Land 22,914,479
from the existing oil in mature endosperm
(PKO, palm kernel oil).
Flower
Palm oil is a monoecious plant married,
means there are male and female flowers on Fact 9
one tree but not in the same cluster, although As a tropical country with rainfall of 2000 - 2500 mm / year, dry months ranged
sometimes also experienced male and female
flowers on one stem (hermaphrodite). 2-3 months/year and average temperatures of 24-28oC, Indonesia’s region is very
suitable for oil palm plantations.
Source: Pahan (2006)

10 11
 Facts of Indonesian Oil Palm
Facts of Indonesian Oil Palm Facts
Facts of
of Indonesian
Indonesian Oil Palm
Oil Palm

Fact 12
Fact 10 In 2009, world palm oil production reached 43 million tons, from the total land
Palm oil has higher productivity compared to other oil-producing crops such as area of 12,8 million ha, in which Indonesia is the largest producer, while the total
soybean, sunflower and rapeseed. The productivity of palm oil is 3.5 tons/ha/year, production of soybean oil in the same year was 35.6 million tons, rapeseed oil
while soybean oil is only 0.36 ton/ha/year, sunflower oil is around 0.48 ton/ha/years was 20.4 million tons and sunflower oil was about 11.8 million tons. In 2010, it is
and Rapeseed oil is 0.55 ton/ha/year. predicted that world palm oil production will reach 52.3 million tons.
Source: Oil World, Indonesian Oil Palm Society , InfoSAWIT Data Centre (2010) Source: Oil World (2010)
World Vegetable Oil Productivity (Ton/ha/year)
6.0
World’s Palm Oil Production (2000-2010*)
6.0
5.5 55,000

5.0 50,000
45,000
4.5
4.0 3.74 40,000
Productivity Potency

3.5 35,000

000 Tonnes
3.0 30,000
2.5 25,000
2.0 20,000
1.5 15,000
1.0 0.67 0.48
10,000
0.38
0.5
5,000
0
Palm Rapeseed Sun Flower Soybean 0
Oil Oil Oil Oil 2004 2005 2006 2007 2008 2009 2010*
Year * Prediction
Fact 11
From the total area of vegetable oil producing plants in the world which is 231.9 Fact 13
million ha, the total area of oil palm area is only 12.8 million ha (5.5%) compared to In the past seven years, the world’s palm oil consumption increased sharply.
the total area of soybean plants which is 102.7 million ha (44.3%). In 2009, palm oil consumption reached 42 million tons. The predicted
Source: Oil World, Indonesian Oil Palm Society , InfoSAWIT Data Centre(2010) consumption in 2010 is in the amount of 44.5 million tonnes.
Source: Oil World (2010)
Comparison of The Acreage of Vegetable Oils Producing Area in the World
World’s Palm Oil Consumption (2004-2010*)
45,000
12.8
Million Ha 9.5 Million Ha 40,000
102.7 Million Ha 35,000
21.56
Million Ha 30,000

000 Tonnes
25,000
23.4 20,000
Million Ha
15,000

10,000
5,000

0
2004 2005 2006 2007 2008 2009 2010*

30.8 Million Ha Year * Prediction

31.07 Million Ha

Soybean Rapeseed Cotton Sun Flower Peanut Oil Palm Coconut

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Indonesian Oil Palm
Oil Palm

Fact 14 Fact 16
Contribution of Indonesian CPO for the world is increasing and successfully has Indonesia exports CPO and its derivatives to more than 45 countries
surpassed Malaysia as the largest producer of CPO in 2006. In 2009, the production in the world. There are six largest consumers of Indonesian CPO namely India, EU-
of Indonesian CPO reached 21.511 million tons. 27, China, Bangladesh, Pakistan and USA.
Source: Oil World (2010) Source: CBS, GAPKI (2010)

CPO Production of Five Main CPO Producers in The World (2004-2010 *) Destination of Regional Exports Of Indonesian CPO and Its Derivatives

5,000,000
4,500,000

4,000,000
3,500,000

3,000,000
2,500,000

2,000,000
1,500,000

1,000,000
500,000

0
India Uni China Malaysia Singapura Bangladesh Egypt Pakistan USA Others
Eropa
*

* Prediction
Fact 17
Palm oil export volume of Indonesia in 2009 reached 15.5 million tons, where as in
2005, it was 10.37 million tons, so that, in the past five years, the increase of export
Fact 15 volume is more than 50%. The export value in 2009 reached US$ 9.14 billion which
CPO is the raw material used for derivative products for both food was almost 250% compared to that of the export value in 2005 which was US$ 3.76
and non-food industries. CPO processing in refineries produce olein and stearin with billion.
Palm Fatty Acid distillate (PFAD) as by products. Olein and stearin can be processed Source: CBS, Ministry of Trade Republic of Indonesia (2010)
further into food products such as cooking oil, margarine, shortening
and non-food products such as soap, candles, detergents and cosmetics while Palm Oil Export Volume and Value in 2005-2009
PFAD can only be used for non-food products. CPO Palm Oil Total
Source: APOLIN, Indonesian Oil Palm Society (2009)
Photo: Musim Mas

Year Value Value Value

Volume Volume Volume
(US$ (US$ (US$
(000 Ton) (000 Ton) (000 Ton)
Miliar) Miliar) Miliar)
2005 4,565 1.593 5,811 2.164 10,376 3.757
2006 4,840 1.791 7,261 3.027 12,101 4.818
2007 5,701 3.739 6,174 4.130 11,875 7.869
2008 7,904 6.557 6,387 5.845 14,291 12.402
2009 8,799 5.006 6,730 4.138 15,529 9.144

14 Integrated oil palm downstreem industry 15

 Facts of Indonesian Oil Palm
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of Indonesian
Indonesian Oil Palm
Oil Palm

Fact 18 Fact 19
The composition of saturated and non saturated fatty acids in palm oil is Palm kernel oil can be used as raw material for basic oleochemicals industry such
balanced, so it is suitable to become the raw material for cooking oil. as fatty alcohol. Fatty alcohol can be used as the feedstock of downstream industry
Source: Hariyadi (2010) such as surfactants, which can be processed futher into cosmetics, personal care,
Fatty Acid Compotition in Palm Oil detergents and so on.
Source: Ministry of Industry, InfoSAWIT Data Centre (2010)
Composition Percentage of the Total Fatty Acids (%)
of Fatty Acids Range Average
Fatty Acid Compotition in Palm Oil Kernel
Saturated Fatty Acids
Percentage
C12:0 0.1 – 1.0 0.2 Fatty Acid Types Colour
(%)
C14:0 0.9 - 1.5 1.1 Laurat C12 48.2%
C16:0 41.8 – 45.8 44.0 Miristat C14 16.2%
C18:0 4.2 – 5.1 4.5 Palmitat C16 8.4%
C20:0 0.2 – 0.7 0.4 Kaprat C10 3.4%
Non Saturated Fatty Acids Kaprat C8 3.3%
C16:1 0.1 – 0.3 0.1 Stearat C18 2.5%
C18:1 37.3 – 40.8 39.2 Oleat C18 15.3%

C18:2 9.1 – 11.0 10.1 Linoleat C18 2.3%

C18:3 0.0 – 0.6 0.4 Lainnya 0.4%

Green : Saturated Fat Blue: Unsaturated Fat
Orange: Many Unsaturated Fat

Fact 20
Oil palm fresh fruit bunches can be processed into crude palm oil (CPO) and palm
kernel oil (PKO) at a palm oil mill (POM). By product of them, such as oil palm empty
fruit bunches (EFB) can be recycled into various biomass products, while methane
can be extracted for fuel gas and the rest flowed into the garden as fertilizer.
Source: InfoSAWIT Data Centre (2010)

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Indonesian Oil Palm
Oil Palm

Fact 21
The industrial tree of palm oil from upstream to downstream.
Source: Ministry of Industry, InfoSAWIT Data Centre (2010)

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Indonesian Oil Palm
Oil Palm

Chapter II. Fact 22

Indonesia Palm Oil Industry
Area of oil palm plantations in Indonesia increased from year to year. In 2009,
the area reached 7.3 million ha spread out all over Indonesia. The spread of oil
palm plantations, supports economic development and regional development
in Indonesia.
Source: Ministry of Agriculture Republic of Indonesia (2010)

The Growth of Indonesia’s Oil Palm Plantation

8,000

6,000

1000 ha
4,000

2,000

0
1980 1985 1990 1995 2000 2005 2009

Fact 23
Regional development of oil palm cultivation in Indonesia spreads from
Sumatera to Papua. Currently, oil palm was more developed in Kalimantan,
Sulawesi and Papua as they still have vast land reserved. Plantations
development in those regions have already openned job vacancies for local
people, and successful in poverty alleviation.
Source: Ministry of Agriculture Republic of Indonesia, Ministry of Forestry Republic of Indonesia,
Ministry of Industry Republic of Indonesia, InfoSAWIT Data Centre (2010)

Indonesia Palm Oil Plantations

Riau : West Kalimantan : East Kalimantan :
Nangroe Aceh Darussalam : Plantations: 1,623,458 Ha Plantations: 476,891 Ha Plantations: 368,504 Ha
Plantations: 274,135 Ha CPO: 5,072,834 Tonnes CPO: 1,140,639 Tonnes CPO: 370,671 Tonnes
CPO: 709,021 Tonnes
Jambi :
Plantations: 454,771 Ha South Sulawesi :
CPO: 898,640 Tonnes Plantations: 133,493 Ha
CPO: 429,388 Tonnes West Papua :
North Sumatera : Plantations: 33,646 Ha
Plantations: 1,026,644 Ha CPO: 80,328 Tonnes
CPO: 3,200,673 Tonnes

West Sumatera :
Plantations: 305,871 Ha
CPO: 839,640 Tonnes

South Sumatera : Papua :

Plantations: 718,068 Ha Central Kalimantan : Plantations: 25,926 Ha
CPO: 1,829,609 Tonnes Plantations: 709,206 Ha CPO: 56,738 Tonnes
CPO: 1,352,934 Tonnes

20 21
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of Indonesian
Indonesian Oil Palm
Oil Palm

Fact 24 Fact 26
Ownership of oil palm plantations in Indonesia is classified into three groups, The annual growth rate of Indonesia’s CPO production during the last ten years
namely: Smallholder Plantation (3.2 million ha), Large State Own Plantation continued to increase by 12%.
(617,000 ha) and Large Private Plantations (3.5 million ha). Source: Ministry of Agriculture Republic of Indonesia, InfoSAWIT Data Centre (2010)
Source: Ministry of Agriculture Republic of Indonesia, InfoSAWIT Data Centre (2010)

Land Development of Indonesian Palm Oil Area The Growth of CPO Production
Land Area (000 ha) Production CPO (000 tonnes)
Year Year
SP % LSOP % LPP % National SP % LSOP % LPP % National

1980 6 2 200 68.9 84 28.9 290 1980 1 0.14 499 69.21 221 30,65 721

1990 292 25 372 33 463 41 1.17 1990 377 15.62 1,247 51.68 789 32,70 2,413

2000 1,167 28 588 14.1 2,403 57.8 4,158 2000 1,906 27.22 1,461 20.87 3,634 51,91 7,001

2007 2,752 40.7 606 9 3,409 50.3 6,767 2007 6,358 35.99 2,117 11.98 9,190 52,02 17,665

2008 2,903 41.4 608 8.7 3,409 48.6 7,008 2008 7,105 37.01 2,295 11.95 9,800 51,04 19,200

2009 3,204 43.7 617 8.4 3,501 47.8 7,322 2009 7,976 37.08 2,495 11.60 11,040 51,32 21,511

Ptb %/th 24.2 4.0 13.7 11.8 Ptb %/th 35.8 5.3 14.0 12.0
Note: Note:
SP: Smallholder Plantation, LSOP : Large State Own Plantation, LPP : Large Private Plantations SP: Smallholder Plantation, LSOP : Large State Own Plantation, LPP : Large Private Plantations

Fact 25
Within 2000 – 2009 productivity CPO in Indonesia around 3 tons/ha/year.
Source : Ministry of Agriculture RI, InfoSAWIT Data Centre (2010)

CPO Productivity During 2000-2009

4.5
4.0
3.5
3.0
Tannes/Ha/Year

2.5
2.0
1.5
1.0
0.5
0

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Fact 27
Palm oil mill (POM) is one of the production supply chain in the palm oil industry
that serves as a post harvest processing of fresh fruit bunches (FFB) into CPO.
The number of POM in Indonesia is 608 units with the total capacity of 34,280 tons
FFB/hr and spread out in 22 Provinces.
Source: Ministry of Agriculture Republic of Indonesia (2009)
Fact 28
As the largest CPO producer in the world, Indonesia is able to meet the needs
of cooking oil in the country that reach 4 million tons annually. The amount of
cooking oil factory in Indonesia was 94 units in 2009 which are
spread out throughout Indonesia.
Source: Central Bureau of Statistics, Ministry of Agriculture Republic of Indonesia (2009)

Indonesian Palm Oil Mills

Distribution of Cooking Oil Factories in Indonesia
Production Capacity
Total Number of No Provinces Unit
No. Provinces (Ton Fresh Fruit
Palm Oil Mill (Unit)
Bunches/hour) 1 NAD 2

1. NAD 25 980 2 North Sumatera 13

3 West Sumatera 3
2. North Sumatera 92 3,815
4 Riau 8
3. West Sumatera 26 1,645
5 Jambi 2
4. Riau 140 6,660
6 South Sumatera 5
5. Riau Islands 1 40 7 Lampung 4
6. Jambi 42 2,245 8 DKI Jakarta 8
7. South Sumatera 58 3,555 9 West Java 8

8. Bangka Belitung 16 1,235 10 Central Java 5

11 East Java 9
9. Bengkulu 19 990
12 Banten 1
10. Lampung 10 375
13 West Kalimantan 11
11. West Java 1 30
14 East Kalimantan 2
12. Banten 1 60
15 North Sulawesi 5
13. West Kalimantan 65 5,475 16 Central Sulawesi 1
14. Central Kalimantan 43 3,100 17 South Sulawesi 5

15. South Kalimantan 15 770 18 Gorontalo 1

16. East Kalimantan 29 1,545 19 West Papua 1

Total 94
17. Central Sulawesi 7 590
18. South Sulawesi 2 150
19. West Sulawesi 6 260
20. South-East Sulawesi 3 260
21. Papua 3 140
22. West Papua 4 360
Total 608 34,280

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Fact 29 Fact 30
Oleochemical industries are included in the group of palm oil derivatives industry. CPO is the raw material source of alternative energy in the form of biodiesel which
In Indonesia, there are nine basic oleochemicals manufacturers that produce fatty results in lower emissions than that of fossil fuel sources. CPO can be a major
acid, fatty alcohol and glycerine. Fatty acid production capacity reaches 986,000 energy source in the future. The number of biodiesel producers is 20 companies
tons/years, fatty alcohol reaches 490,000 tons/year and glycerine reaches 141,700 with a total installed capacity of 3 million tons/year.
tons/year. Source: APROBI (2009)
Source: Apolin (2010)
The Producers of Biodiesel in Indonesia and Their Capacities
Manufacturers and the National Oleochemical Industry Capacity
Capacity
(in 1000 tons) No Company Names Location
(Tons/Year)
Fatty Fatty
No Company Names Glycerin
Acid Alcohols 1 PT Alia Mada Perkasa Kosambi, Tangerang 11,000
1 PT Ecogreen (Medan & Batam) 45 350 24 2 PT Anugrah Inti Gemanusa Gresik 40,000
2 PT Sumiasih, Bekasi 91   10 Kab Kutai Timur 6,000
3 PT Bioenergi Pratama Jaya
3 PT SOCI MAS , Medan 80   8 Kab Berau 60,000
PT Flora Sawita Chemindo (Bakrie Group), 50   5.1 4 PT Cemerlang Energi Perkasa Dumai, Riau 400,000
4
Medan
5 PT Damai Sejahtera Sentosa Cooking Rungkut, Surabaya 120,000
5 PT Musim Mas, Medan 320 100 30
6 PT Darmex Biofuel Bekasi 150,000
PT Domba Mas (Bakrie Group), 60 40 4.6
6 7 PT Energi Alternatif North Jakarta 7,000
Kuala Tanjung
8 PT Eternal Buana Chemical Industries Cikupa, Tangerang 40,000
7 Wilmar Group, Gresik 120   30
9 PT Eterindo Nusa Graha Gresik 40,000
8 PT Nubika Jaya , Kisaran 130   20
10 PT Indo Biofuels Energy Merak 60,000
9 PT Cisadane Raya Chemical, Tangerang 90   10
11 PT Multikimia Intipelangi Bekasi 14,000
Total 986 490 141.7
Kab Deli Serdang 70,000
12 Musim Mas Group
Batam 350,000
13 PT Pasadena Biofuels Mandiri Cikarang 10,240
14 PT Pelita Agung Agrindustri Bengkalis, Riau 200,000
15 PT Petro Andalan Nusantara Dumai 150,000
16 PT Primanusa Palma Energi North Jakarta 24,000
Kab Asahan,
17 PT Sintong Abadi 35,000
North Sumatera
18 PT Sumi Asih Bekasi 100,000
19 PT Wahana Abdi Tritatehnika Sejati Cileungsi, Bogor 132,200
20 PT Wilmar Bio Energi Indonesia Dumai 1,050,000
 TOTAL   3,069,440

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Fact 31
Infrastructure is an important tool in the national palm oil industry. Until today from
six public active seaports in Indonesia, there are two CPO export ports namely Port
of Belawan, located in the North Sumatera province and Dumai Port, located in Riau
province.
Source: Ministry of Transportation Republic of Indonesia, InfoSAWIT Data Centre(2009).

Belawan Ship Port

Ship capacity 50,000 DWT
Dumai Ship Port
Ship capacity 50,000 DWT

Sei Lais Ship Port (Palembang)

Ship capacity 20,000 DWT

Tanjung Perak Ship Port

Ship capacity 50,000 DWT
Panjang Ship Port
(Lampung)

28 29
Ship capacity 20,000 Tanjung Priok Ship Port
DWT Ship capacity 60,000 DWT
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Oil Palm

Chapter III. Fact 32

Economic Added Value

CPO and PKO have advantages as raw materials for consumer goods, both
as food and non food products. In terms of economic value, the downstream

of Oil Palm
products would generate higher added values.
Source: Surfactant and Biofuel Research Centre / SBRC IPB (2009)

Value Added of Eight Supperior Derivative Product

800

600

% 400

200

0
Cooking Fatty Stearat Margarine Gliserine Fatty Metil Surfactant
Oil Acid Alcohol Ester

Fact 33
CPO can be converted into various speciality fats products, which mostly are
safe and healthy food products for human consumption.
Sourcer: Elisabeth (2009)

Speciality Fats Product Catagory

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Fact 34
The use of CPO in Indonesia is also for non-food products, such as oleochemicals
and biodiesel. Oleochemical products can be used as raw material for soap, candles,
cleaning materials and body care products.
Source: Ministry of Industry, APOLIN (2009)
The Use of CPO for Non-Food Products in Indonesia
Fact 36
From 50,2% of saturated fatty acids (palmitic acid) content, only 1,1% of myristic
(14:0) that can increase blood cholesterol levels, while other 49,1% content of palm
oil is neutral and do not increase blood cholesterol levels.
Source: Ong dan Goh (2002)

Biodiesel, 4% Oleochemicals, 8% Fatty Acid Composition Inside Palm Oil and The Impact for Blood Cholestrol
Fatty Acid Composition (%) Impact for Blood Cholestrol
Lauric (12:0) 0.2 Negative or Neutral
Myristic (14:0) 1.1 Increase the cholestrol
Palmitic (16:0) 44.3 Neutral
Stearic (18:0) 4.6 Neutral
Refinery, 88% Oleic (18:1) 39.0 Decrease the cholestrol
Linoleic (18:2) 10.5 Decrease the cholestrol
Others (16:1, 18:3) 0.3 Decrease the cholestrol
Total Palm Oil 100
Palm oil wax

Fact 35 Fact 37
With further processing (interesterification), palm oil can be used as nutraceutical Indonesia’s oil palm seeds production continue to increase. With the addition of
products which is useful as raw materials for pharmaceutical / health products. three new seed companies in 2010, total national production capacity of oil palm
Pharmaceutical grade glycerine can be used as one of raw materials for drug seeds is 256 million seeds.
manufacture. Source: Ministry of Agriculture Republic of Indonesia, InfoSAWIT Data Centre (2010)
Source: PPKS, APOLIN (2009)
Capacity of Indonesian Palm Oil Seed Production
No. Producer Capacity
1. PPKS Medan 50,000,000
2. PT Socfin Indonesia 47,000,000
3. PT London Sumatra Tbk. 23,000,000
4. PT Bina Sawit Makmur 30,000,000
5. PT Dami Mas Sejahtera 24,000,000
6. PT Tunggal Yunus Estate 14,000,000
7. PT Tania Selatan 7,000,000
8. PT Bakti Tani Nusantara 20,000,000
9. PT Bakrie Sumatera Plantation Tbk. 22,000,000
10. PT Sasaran Ehsan Mekarsari 4,000,000
11. PT Sarana Inti Pratama 15,000,000
Total 256,000,000

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Chapter IV. Fact 38

Palm oil industry is the most efficient industry compared to other vegetable oils

Contribution of industry.
Source: Zimmer (2009)

Oil Palm for Economy US$/Ton

1100
Comparison of The World’s Production Cost of Vegetable Oil

1000
900
800
700
600
500
400
300
200
100
0
Palm Oil Palm Oil Soybean Oil Soybean Oil Palm Oil Rapeseed Palm Oil Rapeseed Soybean Oil Soybean Oil
(Indonesia) (PNG) (Argentina) (Brazil) (Malaysia) Oil (Kolombia) Oil (Cina) (USA)
(Kanada) (Uni Eropa)

Fact 39
Although fluctuating, the price of palm oil is the most competitive compared to the
world’s price of other vegetable oils.
Source: Oil World (2009).

Comparison Charts of Eight World Vegetable Oil Prices

Palm Oil PKO Soybean Oil Canola Oil

Sunflower Oil Coconut Oil Cotton Oil Peanut Oil

34 35
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Fact 40
Total area of oil palm plantations 7.3 million ha, the number of workers absorbed
the upstream sector reached 1.95 million people in the state and private
plantations, while 1.7 million farmers in people’s plantations. The workers absorbed
in palm oil mills reaches 70,000 people. Total labor force is absorbed in oil palm
plantations to palm oil mills to reach 3.72 million people.
Middle and downstream industries provide employment for 31,664 peoples that
from upstream to downstream palm oil industry could provide employment for
3.75 million people. If a worker has a family consisting of his wife and two children,
then the total of people who depend on Indonesian palm oil industry as much as
15 million people.
Source: InfoSAWIT Data Centre (2010)
Fact 41
Oil palm encourages the growth of other economic sectors such as services,
telecommunications and transportation. Therefore, the palm oil industry became
wheel drive of local and national economy.
Source: Nurrohmat, et al. (2010).
Multiplier Effects of the Oil Palm
No Description
1 Expenditure multiplier = 2.79.
If it is analyzed from the impact of its spread, chemical industry, food industry
and trade sectors are the sectors that most benefit from the growth of oil palm
plantation sector.
2 Backward linkages = 1 and forward linkage = 1.30. That means oil palm sector
is able to encourage the growth in the upstream sector, especially in industrial
sector of fertilizers, chemicals and financial sectors, as well as in the downstream
sector.
3 Income multiplier = 2.50. This means that if there is additional investment in the
oil palm sector. Then, the total public revenue will increase 2.5-fold.
4 Employment multiplier in the oil sector and the whole economy, respectively,
are 1.05 and 1.84. That is, the growth of the palm oil sector will increase
employment in the sector of 1.05-fold and 1.84-fold

Fact 42
Net income of smallholders with 2 ha of land ownership is US$ 2-4 million/
month which is sufficient to meet their primary and secondary needs.
Source: Ministry of Agriculture Republic of Indonesia, InfoSAWIT Data Centre (2010)

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Chapter V. Fact 43
Palm oil has a wide variety of useful nutrients required in the body

Contribution of Oil Palm

a. α-Carotene
• Concentration on CPO is 235 ppm
• most powerful antioxidant among the other forms of carotenoids

for Health • Reduce the risk of liver, lung, pancreas and stomach cancer (Murakoshi, 1992)
• Reduced atherosclerosis in the arteries (Bonnie & Choo, 2000)
• The recommended intake is more than 1.5 mg/day (Food and Nutrition Board 2000)
b. β-Carotene
• Concentration on CPO is 377 ppm
• Reduced atherosclerosis inside arteries (Bonnie & Choo, 2000)
• Reduce the risk of heart disease (Food and Nutrition Board 2000)
• Potential to maintain eye health
• The recommended intake is 2.5-5.9 mg/day (Food and Nutrition Board 2000)
c. Vitamin E
• Concentration on CPO is 810 ppm
• Having forms of α-tocopherol, α-, γ-, δ-tokotrienols
• Reduce the risk of cancer
• Directly serve as natural antioxidants in protecting cells membrane from oxidative
damage
• Reduce the risk of heart disease
• Potential to reduce the risk of diabetes
• Potential to improve the immune system
• Potential to reduce the risk of Alzheimer’s disease and Down Syndrome
• The recommended intake is 15 mg / day (Food and Nutrition Board 2000)
d. Lycopene
• Concentration on CPO is 8.74 ppm
• Reduce the risk of lung, stomach and prostate cancer
• Potential to reduce the risk of CHD (coronary heart disease)
• Potential to prevent osteoporosis
• Potential to remind fertility in men
• Potential to reduce the risk of neurological diseases such as Parkinson’s.
• The recommended intake is 3.7-16.15 mg / day (Rao et al., 2002)
e. Lutein
• Concentration on CPO is 8.74 ppm
• Reduce the risk of lung, stomach and prostate cancer
• Potential to reduce the risk of CHD (coronary heart disease)
• Potential to prevent osteoporosis
• Potential to remind fertility in men
• Potential to reduce the risk of neurological diseases such as Parkinson’s.
• The recommended intake is 3.7-16.15 mg / day (Rao et al., 2002)
f. Sterol
• In CPO, there is form of β-sitosterol 370 ppm, kampesterol 151 ppm and
stigmasterol 66 ppm.

38 • β-sitosterol has the potency of hypocholesterolemic (Bonnie & Choo, 2000)

39
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g. Unsaturated fatty acids

• Oleic acid C18: 1 Cis (ω-9) 40.8%
Fact 46
Palm oil is a natural source of vitamin E. Constituent of vitamin E, contained
• Linoleic acid C18: 2 (ω-6) 11.9%
in palm oil namely tocopherols and tocotrienols. It is antioxidant that can
• Linolenic acid C18: 3 (ω-3) 0.4%
counteract the free radicals thus preventing premature aging and cancer.
• Effectively reduce blood cholesterol. Source: Slover (1971), Gunstone (1986), Palm Oil in Human Nutrition (1999)
• Saturated fatty acids (palmitic acid 36.6% and 3.7% stearic acid) do not increase
blood cholesterol (Bonnie & Choo, 2000) Composition of Minor Components in Various Oils and Fats
h. Ubiquinone-10 (UQ-10)
Tocopherols Tocotrienols
• CPO contains 18-25 ppm of ubiquinone-10 Oil & Fats Total
• Potential to improve the immune system T + T3

• Potential to prevent heart disease and hypertension

• Potential to prevent damage to red blood cells due to oxidation
(Bonnie & Choo, 2000) 792

Fact 44
CPO can be processed into red palm oil to retain value nutrition by special
processing
a. By Supercritical Fluid Extraction (SFE) (Muchtadi, 1992) (Sulaswatty,
1998) yield β-carotene 96.4%
b. By molecular distillation yield of β-carotene 80% (Ooi et al., 1996)
c. By the purification process of the modified conventional oil Fact 47
Crude palm oil is a vegetable oil with very high content of carotenoids (Pro-vitamin
Fact 45 A). At some private plantations and State Owned Plantation it was found that some
Application of red palm oil oil palm trees produce 4000 ppm of beta-carotene (provit A).
a. RPO supplementation for pregnant and lactating women Source: Hariyadi (2010)
Increasing concentrations of α-, β-carotene in blood plasma and breast
milk. (Lietz et al., 2001) Content Of Vitamin A (Retinol Equivalent)
in Various Food Products
b. Potential to overcome vitamin A defficiency
National promotion of the use of red palm oil to reduce vitamin A g Rethynol Equivalent per
Variety Of Food Material
100 g Edible Material
deficiency in the whole population. (Scrimshaw, 2000)
c. Raw and derived products Orange 21
• Oil meal Banana 50
• Oil saute,
Tomato 130
• Oil sachets for instant noodles,
• Salad dressings Carrot 400
• Beverage emulsions Red Palm Oil (Refine) 5000
• “scott emulsion” like with the aromas of fruit, chocolate, mocca Crude Palm Oil (CPO) 6700
• Microencapsulation
• Fat spreads
• Margarine
• CBE (Cocoa Butter Equivalent)
• CBS (Cocoa Butter Substitute)

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Palm Oil Fatty Acid Composition and The Effects to Blood Cholestrol
Fact 48
Percentage
The products derived from palm oil do not Saturated
(% w/w)
Effect to Blood Cholestrol
contain trans fatty acid (transfat) because on the
derivatived products of vegetable oils, transfat Saturated Fatty Acid
formation occurs in partial hydrogenation process C : 12 : 0 (Lauric Acid) 1 Negative or neutral

Photo: Antara
that is not happening in the manufacturing of C : 14 : 0 (Myristic Acid) 1-2 Improve blood cholesterol levels
palm oil products.
Source: Hariyadi (2010) C : 16 : 0 (Palmitic Acid) 32-47 Neutral
C : 18 : 0 (Stearic Acid) 4-10 Neutral
Fact 49 Non-Saturated Fatty Acid
Palm oil, includes one of the 17 edible oils which by the Food and Agriculture C : 18 : 1 (Oleic Acid) 38-50 Reducing blood cholesterol levels
Organization (FAO) are considered to meet the Code and Decode (Codex)
C : 18 : 2 (Linolenic Acid) 5-14 Reducing blood cholesterol levels
Alimentarius. One of the requirements of the Codex Alimentarius Commission is the
carotene content of 500-2000 ppm, while the oil content of natural carotenoids of C : 18 : 3 (Linolenic Acid) 1 Reducing blood cholesterol levels
palm is 500-700 ppm.
Source: FAO/WHO(1983) Compotition Carotenoid in CPO
Carotene Compottion [%] Fact 52
Fact 50 Phytoene 1.27
Palm oil can reduce the risk of coronary heart
The composition of fatty acids in palm oil is the most balanced when compared to disease. Palm oil contains carotenoids which
Phytofluene 0.06
other vegetable oils. most of them are beta carotene that are used
Cis-β-carotene 0.68
Source: MPOC (1991) as antioxidant which prevent the formation
β-carotene 56.02 of “plaques” that can clog blood arteries .
α-carotene 35.16 In addition, food intake that contains beta
Composition of Fatty Acid in Vegetable Oil
Cis-α-carotene 2.49 carotene also may reduce risk of mouth,
Oil Names Monounsaturates (%) Polyunsaturates (%) Saturates (%)
ζ-carotene 0.69 pharynx, larynx, esophagus, gastric, colon,
Palm Oil 40 10 50 rectum, bladder and cervix cancer, preventing
γ-carotene 0.33
Peanut Oil 39 42 19 premature aging and boost immunity.
δ-carotene 0.83
Source: Gee (2007)
Olive Oil 75 10 15 Neurosporene 0.29
Corn Oil 30 54 16 β-Zeacarotene 0.23

Soybean Oil 25 60 15 α-Zeacarotene 0.2

Licopen 1.30
Sun Flower Oil 13 77 10
Coconut Oil 5 1 94
Fact 53
Palm oil can be consumed safely and better than olive oil in terms of reducing
Fact 51 the risk of cancer. Palm Comparative Effect of Cholesterol Modulation of Oil Palm with Olive Oil

Similar to other vegetable oil, palm oil do not contain cholestrol compounds. The oil could increase good
content of oleic acid high (C: 18: 1) in palm oil instead can reduce blood cholesterol. cholesterol (HDL) in blood
Source: MPOC (1991) that slightly ishigher than
that of olive oil. HDL can Olive Oil Olive Oil

reduce the risk of cancer. Palm Oil Palm Oil

Source: Ng, et al (1992),

Choudhury, et al (1995)

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Content of Palm Oil Fat

Fact 54
Fatty Total Fats (%) Palm oil contains Monounsaturated Fatty
Acid Range Average Acid (MUFA), 40% acids saturated fat
(palmitic) that is good for health.
12:0 0.1 – 1.0 0.2
Source: Muchtadi (1992)
14:0 0.9 – 1.5 1.1
16:0 41.8 – 46.8 44.0
16:1 0.1 – 0.3 0.1
18:0 4.2 – 5.1 4.5
18:1 37.3 – 40.8 39.2
18:2 9.1 – 11.0 10.1
18:3 0.0 – 0.6 0.4
20:0 0.2 – 0.7 0.4
Photo: PT Smart Tbk.

Fact 55
Tocotrienols contained in palm oil can reduce the Low Density Lipoprotein (LDL/
bad cholesterol) and increase High Density Lipoprotein (HDL/good cholesterol).
The content of tocopherol tocotrienols in palm oil is much greater than that is in
other vegetable oils.
Source: MPOC (1991)
Fact 56
The process of making cooking oil and its derivative products in refineries has
complied with the government regulations related to quality and food safety as
regulated in Hazard Analysis Critical Control Point (HACCP).
Source: Hariyadi, InfoSAWITData Centre(2010)

Tocopherol Tocotrienols Content and Tocotrienols Trajectory

Tocopherol Impressions
Vegetable Oil
Tocotrienol (ppm) Tocotrienol (ppm)
Palm Oil 218 773
Kernel Oil 12 18
Olive Oil 50 0
Coconut Butter 200 10
Corn Oil 800 0
Soybean Oil 960 0

Fact 57
Palm oil is very suitable to be processed as cooking oil because of long shelf life
and producing the tasty flavor of food.
Source: SEAFAST (2009)

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Chapter VI. Fact 58

Contribution of Oil Palm for Indonesia’s palm oil

industry has adopted good
cultivation and sustainable

Social and The Environment management to minimize

environmental impact
damage, such as the zero
burning.

Photo: PT Satrindo Mitra Utama

Source: InfoSAWIT Data Centre
(2010)

Fact 59
High Conservation Value
(HCV) and pest control
and integrated disease
(IPM) have already been
implemented in the of
national oil palm company
as an effort to protect
biodiversity and to minimize
the use of chemical materials
in oil palm plantations
management .
Source: Indonesian Oil Palm Society,
InfoSAWIT Data Centre(2010)

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Fact 60 Fact 61
Many of oil palm plantations
Chemical characteristic and size of the oil palm wood stem allow waste palm oil
have obtained the ISO 90001 and
wood to be used as raw materials of furniture such as cabinets, tables and chairs.
Source: Balfas (2009) 14001 certificates, which show
the concern for sustainable oil
The Physical Dimensions Of The Average Oil Palm Stem palm plantations.
Source: InfoSAWIT Data Centre (2010)
Variety Name Diameter (cm) Height (m) Volume (m3)
Dura 48.59 11.80 2.19
Pisifera 46.65 11.20 1.91
Tenera 39.00 8.86 1.06
Average : 44.75 10.62 1.72
Fact 62
Chemical Characteristics Of Oil Palm Wood, Agathis And Teak The number of Indonesian companies that are members of the RSPO in 2010
Chemical Compounds Oil Palm Agathis Jati is 75 companies. The companies are actively involved in the preparation of the
Principle and Criteria of RSPO and the National Interpretation of RSPO P & C.
Content, %
Several companies have had RSPO certification, among others, PT Musim Mas, PT
Cellulose 54.38 52.4 47.5
Lignin 23.95 24.7 29.9
PP London Sumatera Indonesia Tbk, PT Hindoli, PTPN III and PT Bakrie Sumatera
Pentosan 19.36 12.6 14.4 Plantation.
Ash 2.02 1.1 1.4 Source: RSPO, InfoSAWIT Data Centre 2010
Silica 1.34 0.1 0.4
Solubility, %
Alcohol-benzene 8.90 2.0 4.6
Cool Water 12.02 0.6 1.2
Hot Water 16.37 1.3 11.1
1% NaOH 24.87 7.3 19.8

Photos: Jamal Balfas Photo: PT BSP Tbk

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Comparison Land Area with
Fact 63 Forest Area and Palm Oil Plantations (million ha)
Oil palm plantations can be Fact 65
integrated with livestock The proportion of land usage for oil
business, to increase revenue of palm is relatively smaller compared Indonesia Land Area
oil palm planters. to that of forest conservation 187.7 million ha

Source: InfoSAWIT Data Centre 2010 including national parks and

protected forest.
Source: Ministry of Forestry Republic of
Indonesia, Ministry of Agriculture Republic 44.11 %
of Indonesia, InfoSAWIT Data Centre
(2009)
26.32 %

3.89 %

Production Conservation Palm Oil

Fact 66 Forests Forests & Protected Plantations

The application of palm oil

wastewater from anaerobic ponds with Biochemical
Oxygen Demand (BOD) of 3500-5000 mg/liter and oil palm empty fruit bunches
(TKKS) in the garden can supply nutrients of N, K and organic matters.

Nutrient contents of wastewater are 450 mg N / l, 80 mg P / l, 1250 mg K / l and

Fact 64
Oil palm leaves and cake can be
used as animal feed.
Nutritional composition of the
meal of palm kernel are: crude
protein 15.14%, 6.08% crude fat, crude fiber
17.18%, 0.47% calcium, phosphorus 0.72%
215 mg/l. Wastewater application system can be done with sprinkle system (water
shine), flatbed (through pipes to tanks into a ditch secondary distribution), longbed
(To the straight and winding ditch) and the tractor tank (wastewater transport from
WWTP: Waste Water Processing Installation) to the planting areas.
Applications by 60 TKKS ton/ha/year to replace all the N and K fertilizer. Each
processing of 1 ton of FFB will produce solid waste in the form of oil palm empty
fruit bunches (EFB) as much as 200-250 kg and 650 liters of wastewater.
Source: Ministry of Agriculture Republic of Indonesia (2007)

Photo: PT Smart Tbk.

and BETN digestibility value of 57.80% and
gross energy of 5088 kcal/kg.
Source: Widjastuti, et. al (2004)

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Fact 67 Fact 68
Indonesian palm oil company is committed to its Corporate Social Responsibility Through CSR programs, oil palm
(CSR) in accordance with Law No. 40 of 2007 about limited liability companies. companies help the development
Source: Ministry of Forestry of Indonesia, Ministry of Agriculture Republic of Indonesia, InfoSAWIT Data Centre
(2009)
of elementary and secondary
schools to community around the
CSR programs in the Indonesian Palm Oil Company plantation. In addition, they are
Sectors Activities Advantages given all the learning facilities and
1. Establishing the school buildings
infrastructure to support learning
Improving teaching and activities in school.
2. Improving and increasing educational infrastructure such as laboratories,
learning activities, in order
library, computers, etc. Source: InfoSAWIT Data Centre (2010)
to improve the quality of
Education 3. Improving teachers’ welfare
education, especially in the
4. Provide scholarships for clever students
vicinity of plantations and
5. Providing the school textbooks
factorie
Fact 69
6. Giving school guidance and education to become pre-eminent school Solid waste and wastewater in POM can be utilized as an energy source. The
1. Providing optimal health care to society through hospitals and clinics that wastewater from a capacity of 30 tons of POM/h with the total of POM is
exist
146.000 tons/year can produce 1 MW electricity. If the EFB is used as an energy
2. Improving and increasing the health infrastructure such as pharmaceuticals, Community awareness about
Health
vaccination, and medical equipment the importance of health source through the boiler-steam turbine system , it is expected to generate
3. Giving health education and free medical treatment to villages around electricity by 2.5 MW. Excess energy can be used as an energy source for PKO
plantation (mill) plant or sold to the community.
1. Buiding of infrastructure and equipment and encouraging worship Source: InfoSAWIT Data Centre (2009)
 
development of religious activities

2. Constructing and repairing the roads and transportation infrastructure of the Streamlining the existing
village to go to proper city transportation

3. Constructing of village facilities such as police stations and community halls

 
4. Development and improvement of sports facilities such as soccer field
Social Directing people to use clean
Programs 5. Development and improvement of water supply such as wells drilled and
water and healthy sanitary
facilities bath wash toilet (MCK), a healthy
facilities

6. Construction and repair of the dike Preventing flooding

Promote unity between

7. Organize youth activities such as various forms of tournament exercise, blood
citizens and employees or
donors
plantation and mill

8. Natural disaster relief  

Fact 70
1. Applying best practice management of oil palm plantations
Smallholders of oil palm do
2. Establish areas for conservation HCV3. Conserving biodiversity in oil palm
Program
plantation taungya system of cultivation
Pelestarian Develop nature conservation
Lingkungan
4. Implement integrated pest and disease control to overcome daily food needs
5. Implementing RSPO principles and criteria in the areas of oil palm growers and when oil palm plantations haven’t
mills
produced product yet.
1. Training related to the business of oil palm and plantation Source: InfoSAWIT Data Centre (2010)
2. Increasing income communities with the Partnership program Inti-Plasma
3. Deceive the public as a supplier of daily necessities employees around the Increase revenue of
Economy
factory or plantation community
4. Lending to the community oil palm seedlings
5. Cooperative employee garden

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Fact 71
Oil palm plantation companies ia allocating conservation area to preserve the 9 Kareo padi Amaurornis phoenicurus Rallidae -

habitat of orangutans and other protected species and to support the efforts of 10 Trinil Tringa sp Scolopacidae -

preserve the fauna. 11 Punai kecil Treron olax Columbidae -

Source: Indonesian Oil Palm Society , Thohari (2010) 12 Punai Treron sp. Columbidae -

13 Tekukur Streptopelia chinensis Columbidae -

The Presence of Wildlife in The Area of Lease Rights Owned Indonesian Oil 14 Delimukan zamrud Chalcophaps indica Columbidae -
Palm Plantation 15 Bayan Tanygnathus sp Psittcidae -
No Animals Names Latin Name Family Status 16 Srindit melayu Loriculus galgulus Psittcidae -
I MAMALIA      
17 Bubut alang-alang Centropus bengalensis Cuculidae -
1 Rindil bulan Echinosorex gymnurus Erinaceidae -
18 Beluk ketupa Ketupa ketupu Strigiformes -
2 Tupai kecil Tupaia minor Tupaiidae -
19 Kukuk beluk Strix leptogrammica Strigiformes -
3 Tuoai Ptilocercus lowii Tupaiidae -
20 Taktarau melayu Eurostopodus temminckii Caprimulgidae -
4 Tupai akar Tupaia glis Tupaiidae -
21 Walet sapi Collocalia esculenta Apodidae -
5 Codot kecil kelabu Pentethor lucasii Pteropodidae -
22 Pekaka emas Pelargopsis capensis Alcedinidae Protected (PP no 7 tahun 1999)
6 Codot sayap totol Balionycteris maculata Pteropodidae -
23 Raja udang meninting Alcedo meninting Alcedinidae -
7 Kukang bukang Nycticebus coucang borneanus Lorisidae Protected (PP no 7 tahun 1999)
24 Cekakak batu Lacedo pulchella Alcedinidae -
8 Trenggiling peusing/ahom Manis javanica Manidae Protected (PP no 7 tahun 1999)
25 Kangkareng perut-putih Anthracoceros albirostris Bucerotidae Protected (PP no 7 tahun 1999)

9 Monyet kra Macaca fascicularis Cercopithecidae - 26 Takur warna warni Megalaima mystacophanos Capitonidae -

10 Monyet beruk Macaca nemestrina Cercopithecidae Vulnerable (IUCN) 27 Takur tenggeret Megalaima australis Capitonidae -

11 Owa kalawat Hylobates muelleri Hylobatidae Endangered (IUCN) 28 Takur ampis Calorhamphus fuliginosus Capitonidae -

12 Bajing kelapa Callosciurus notatus Scuridae Protected (PP no 7 tahun 1999) 29 Pelatuk besi Dinopium javanenses Picidae -

13 Bajing gunung Dremomys everetti Scuridae - 30 Caladi batu Meiglytes tristis Picidae -

14 Bajing tanah moncong runcing Rhinosciurus laticaudatus Scuridae - 31 Sempur hujan sungai Cymbirhynchus macrorhynchus Eurylaimidae -

15 Landak raya Hystrix brachyura Hystricidae Protected (PP no 7 tahun 1999) 32 Cica daun kecil Chloropsis cyanopogon Chloropseidae -

16 Angkis ekor panjang Trichys fasciculata Hystricidae - 33 Cica daun besar Chloropsis sonnerati Chloropseidae -

17 Beruang madu/behuang Helarctos malayanus Ursidae Protected (PP no 7 tahun 1999) 34 Merbah Pycnonotus goiavier Pycnonotidae -

18 Sigung Mydaus javanensis Mustelidae Protected (PP no 7 tahun 1999) 35 Srigunting Dicrurus panadiseus Dicruridae -

19 Musang Paradoxurus hermaphroditus Viverridae Protected (PP no 7 tahun 1999) 36 Srigunting gagak Dicrurus annectans Dicruridae -

20 Macan akar Felis bengalensis Felidae Protected (PP no 7 tahun 1999) 37 Kacer Copsychus saularis Turdidae -

21 Babi Sus sp. Suidae - 38 Murai batu Copsychus malabaricus Turdidae -

22 Pelanduk kancil Tragulus javanicus Tragulidae Protected (PP no 7 tahun 1999) 39 Cinenen kelabu Orthotomus ruficeps Silviidae -

23 Kijang muntjak Muntiacus muntjak Cervidae Protected (PP no 7 tahun 1999) 40 Sikatan rimba dada kelabu Rhinomyas umbratilis Muscicapidae -

II BURUNG       41 Sikatan hijau laut Eumyas thalassina Muscicapidae -

1 Bambangan hitam Dupetor flavicollis Ardeidae - 42 Sikatan belang Ficedula westermanni Muscicapidae -

2 Elang ikan kepala kelabu Ichthyophaga ichthyaetus Accipitridae - 43 Kipasan mutiara Rhipidura perlata Muscicapidae -

3 Elar ular bido Spilornis cheela Accipitridae - 44 Kipasan belang Rhipidura javanica Muscicapidae -

4 Elang hitam Ictinaetus malayensis Accipitridae - 45 Seriwang asia Tersiphone paradisi Muscicapidae -

5 Elang bondol Haliastur indus Accipitridae - 46 Kerak jambul Acridotheres cristatellus Sturnidae -

6 Puyuh kepala merah Haematortyx sanguiniceps Phasinidae - 47 Tiong emas Gracula religiosa Sturnidae -

7 Puyuh sengayan/sio Rollulus rouloul Phasinidae - 48 Burung madu sepah raja Aethopyga siparaja Nectariniidae Protected (PP no 7 tahun 1999)

8 Sempidan biru/belonge Lophura ignita Phasinidae - 49 Pijantung kecil Arachnothera longirostra Nectariniidae Protected (PP no 7 tahun 1999)

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Fact 73
50 Pijantung besar Arachnothera robusta Nectariniidae -
Nucleus Estate Smallholder (NES) program was designed in 1974/75 by the
51 Cabai tunggir coklat Diaceum everetti Dicaeidae - government and started to be realized first time in 1977/78 in Alue Red
52 Kacamata biasa Zosterops palpebrosus Zosteropidae - (North Aceh) and Tabenan (South Sumatera) with rubber as a plantation
53 Bondol Kalimantan Lonchura fuscans Ploceidae - crop.
54 Burung Gereja Passer montanus Ploceidae -

III REPTIL       The aim of NES program is to raise the dignity of life of farmers and their
1 Kobra Naja sp. Elipidae - families by increasing production and revenues farmer. In this concept
2 Ular banyu Phyton reticulatus Phytonidae - of private plantation companies and plantation country serves as the
3 biawak Varanus boornensis Varanidae Protected (PP no 7 tahun 1999) core, while smallholders as plasma or participants. Oil palm NES started
4 Ular belang Bungarus candidus Elapidae -
in 1980/81 in two locations: the local palm oil NES in Labuhan Batu and
5 Ular Tanah Calloselasma rhodostoma Viperidae -
Langkat, North Sumatera. Further development palm oil NES spread to
6 Ular daun Dryophis prasinus Colubridae -
various parts of the country, among others: NES V Lebak (West Java),
and NES V Ngabang Lok I Parindu (West Kalimantan), NES VII Sand (East
7 Toke Gekko gecko Gekkonidae -
Kalimantan),NES VII Luwu (South Sulawesi), special NES II in Jayapura and
8 Kadal Mabouya multifasciata Scincidae -
Manokwari (Papua). This program was adopted by the Government of
9 Labi-labi Chitra indica Trionycidae -
Indonesia to develop plantations.
10 Kura-kura Ortlitia boornensis Emydidae -
Source: Ministry of Agriculture Republic of Indonesia, InfoSAWIT Data Centre (2009)
11 Senyulong Tomistoma schlegelii Crocodylidae Protected (PP no 7 tahun 1999)

Development of Farmers Smallholders Plantations

No Year Series Loan
Fact 72 1 1977 - 1986 - Seri PIR berbantuan / NES - Government, World Bank loan
Oil palm plantations save the flora which is protected by the government’s laws - Seri PIR khusus & lokal
through the establishment of protected conservation by plants area. 2 1986 - 1990 - Seri PIR Trans tahap I - Depkeu, KLBI, Executing Bank
Source: Indonesian Oil Palm Society , Thohari (2010)
3 1990 - 1992 - Seri PIR Trans tahap II - KKPA (KLBI, Executing Bank)
- Seri PIR KKPA-KTI - KKPA dan UUK
The Existence Of Flora In The HGU-Owned
Indonesian Oil Palm Plantation 4 2006 - 2010 - PIR Revitalisasi BUN - Bank credit/public funds
No Latin Name Status
Protected (PP no 7 tahun
1 Eusideroxylon zwageri
1999) Vulnerable (IUCN)
Protected (PP no 7 tahun
2 Dyera costulata
1999)

3 Shorea leprosula Endangered (IUCN)

4 Gonystylus bancanus Vulnerable (IUCN)

5 Anisoptera grossivenia Vulnerable (IUCN)

Nepenthes ampularia Protected (PP no 7 tahun

6
type green 1999)
Napenthes maxima type Protected (PP no 7 tahun
7
green 1999)

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Fact 77
Oil palm plantations can be used
for reclamation of mined areas
so that the damaged and the
neglected areas can be regreened
again.
Source: InfoSAWIT Data Centre (2010)

Photo: FB Anggoro/Antara

Fact 78
Fact 74 Oil palm plantations keep
Palm oil mills provide the installation of wastewater management in eliminating local culture sustainable,
pollutants and toxic materials and also substances that can not be degraded. and empower economic
Source: Ministry of Agriculture Republic of Indonesia, InfoSAWIT Data Centre (2010)
life of local area.
Source: InfoSAWIT Data Centre
(2010)
Fact 75
Wastewater management in
industrial refineries, oleochemicals
and other derivatives industry is
done by using the eco friendly
principles.
Source: Apolin, InfoSAWIT Data Centre
(2010) Fact 79
Oil palm plantations prevent soil erosion by using terracering pattern.
Source: InfoSAWIT Data Centre (2010)

Fact 76

Photo: Teguh Patriawan

Palm oil company protect
cultural sites and historic
relics which are located
around the plantation
areas. This policy is part
of the protection of high
conservation value (HCV).
Source: InfoSAWIT Data Centre
(2010)

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Chapter VII.
Fact 80
Palm oil has the same ability with the rain forest because oil palm grows well in
tropical regions, have a very wide canopy with their function to absorb carbon

Contribution of Oil Palm dioxide in photosynthesis, and as a shelter and also as food sources for animals.
Source: Henson (1999)

for CO2 Reduction Comparison of Palm Oil Plantations with the Rain Forest in
Absorbing Carbon dioxide
Parametric Oil Palm Plantation Rainy Forest
Gross assimilation (t CO2/ha/year) 161.0 163.5
Total respiration (t CO2/ha/year) 96.5 121.1
Net assimilation (t CO2/ha/year) 64.5 42.4
Leaf Area Index 5.6 7.3
Photosynthesis Efficiency (%) 3.18 1.73
Radiation Conversion Efficiency (g / M) 1,68 0.86
The total biomass in the area (t / ha) 100 431
Improved Biomass / year (t) 8.3 5.8
The productivity of dry matter / year (t) 36.5 25.7

Fact 81
For every hectare per year, Oil palm plantations can produce much higher volume of
biodiesel than soybean oil.
Source: Fachgentur Nachwachsende Rohstoffe (FNR) 2006

Comparison Biodiesel Production

Edible Oil Litre/ha/year
Palm Oil 6,000
Soybean 440

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Fact 82
Based on the analysis of life cycle (life cycle assessment) for greenhouse gases
(GHG) emissions, the biodiesel can reduce emissions of up to 62% compared to that
of fossil fuels. References:
Source: Van Zutphen (2007)
1. APOLIN, Indonesian Oleochemical Manufacturers Association, 2009.
Biodiesel Contribution to Green House Gass Emission 2. APOLIN, Indonesian Oleochemical Manufacturers Association, 2010. Oleochemical Industry
The amount (kg CO2/ Review dalam Rapat Dengar Pendapat Umum Komisi VI DPR.
No Source of Emission
ton biodiesel)
3. APROBI, Indonesian Biofuel Manufacturers Association, 2009.
1 Emission production of fertilizer used 185 (11.5%)
2 Released Nitrous Oxide 130 (8.1%) 4. Badrun, Muhammad, 2010. Tonggak Perubahan Melalui PIR Kelapa Sawit Membangun Negeri.

3 Pesticide used 34 (2.1%) Direktorat Jenderal Perkebunan, Kementerian Pertanian Republik Indonesia, Jakarta.
4 Transportation and machineries used 89 (5.6%) 5. BPS, Central Bureau of Statistics, 2009.
5 Palm Oil Factory and refinery 19 (1.2%) 6. BPS, Central Bureau of Statistics, 2010.
6 Empty Fruit Bunches (EFB) 87 (5.4%)
7. Balfas, Jamal, 2009. Penelitian Pemanfaatan Batang Sawit Untuk Furnitur, Bogor.
7 Waste pond 824 (51.5%)
8. Bonni TY dan Choo YM. 2000. Valuable minor constituents of commercial red palm olein:
8 Transportation to Factory and refinery 36 (2.3%)
carotenoids, vitamin E, ubiquinones and sterols. J Oil Palm Resarch. 12:14-24.
9 Biodiesel Refinery 197 (12,3%)
Total 1,601 (100%) 9. Bonnie TYP dan Gwendoline ECL. 2006. Identification of lutein in crude palm oil and evaluation

10 Production and utilization of fuel 4,228 of carotenoids at various ripening stages of the oil palm fruit. Oil Palm Res. 18:189-197
11 Saving from palm oil biodiesel 2,627 10. Choudhury, N. and et al. 1995. Comparison of Palm Oil and Olive Oil: Effects on Plasma Lipids
12 House gas emission saving related to fossil fuel 62% and Vitamin E in Young Adults. Am J. Cli. Nutr. 61. pp. 1043-51

11. Elisabeth, Jenny, 2009. Tren Pengembangan Specialty Fats Indonesia, Bogor.

12. FAO/WHO. 1983. CODEX Alimentarius. Vol XI. Rome. Introduction and pp. 115-130

13. Foreign Agricultural Service (FAS), United States Department of Agriculture (USDA), 2010.

14. Foreign Agricultural Service (FAS), United States Department of Agriculture (USDA), 2009.

15. Food and Nutrition Board, 2000. Dietary References Intakes for Vitamin C, Vitamin E, Selenium,

and Carotenoids. Washington. National Academy Press

16. Friedel, M.C. ,1897. Sur des matières grasses trouvées dans des tombes égyptiennes d’Abydos.

Comptes Rendu 24: 648—51

17. GAPKI, Indonesian Palm Oil Association, 2010.

18. Gee, P. T., 2007. Analitycal characteristics of crude and refined palm oil and fractions. Eur J.

Lipid Sci Technol 109:373-379.

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Indonesian Oil Palm
Oil Palm

19. Gunstone, F.D., J.L. Harwood and F.B. Padley,1986. Lipid Handbook. Chapman and Hall. London, Mice Are Suppressed More Effectively by α-Carotene Than by β-Carotene. Cancer Res.

1985. Pp. 104 dan 455, 516, 518 dan 519. 52:6583-6587.

20. Hariyadi, Purwiyatno, 2010. Sepuluh Karakter Unggul Minyak Sawit. Majalah InfoSAWIT, Edisi 35. Ng, T.K.W., K.C. Hayes et al. ,1992. Dietary palmitic and oleic acids exert similar effects on

Oktober. serum cholesterol and lipoprotein profiles in normocholesterolemic men and women. J.

21. Henson, I.E. ,1999. Comparative Ecophysiology of Palm Oil and Tropical Rainforest. Pada Oil Palm Am. Coll. Nutr. 11(4):pp.383-90.

and Environment: A Malaysia Perspective (Gurmit Singh et.al., eds) Malaysian Oil Palm Growers 36. Nurrohmat et.al., 2010. Dampak pengganda kelapa sawit.

Council, Kuala Lumpur. Pp. 9-39 37. Nebeling, LC, et al. ,1997, ‘Changes in Carotenoid Intake in the United States: The 1987 and

22. The Ministry of Forestry Republic of Indonesia, 2010. 1992 National Health Interview Surveys’, Journal of the American Dietetic Association, vol.

23. The Ministry of Trade Republic of Indonesia , 2010. 97, no. 9, pp. 991-6.

24. The Ministry of Transportation Republic of Indonesia, 2009. 38. Oil World, 2007. Oil World Annual - Vol 1. ISTA Mielke GmbH. Hamburg. pp Oil/Fats 36-40.

25. Ministry of Industry Republic of Indonesia, 2010. 39. Oil World, 2009. Oil World Statistics Update. ISTA Mielke GmbH. Hamburg. pp 1.

26. Ministry of Agriculture Republic of Indonesia, 2007. 40. Ong, A.S.H. and S.H. Goh, 2002. Palm oil: a healthful and cost-effective dietary component.

27. Ministry of Agriculture Republic of Indonesia, 2009. Food Nutr. Bull. 23: 11-22.

28. Ministry of Agriculture Republic of Indonesia, 2010. 41. Ooi CK, et al. 1996. Refining Red Palm Oil. Elais 8: 20-28.

29. Lietz G, et al. , 2001. Comparison of the effects of supplemental red palm oil and sunflower oil on 42. Pahan, Iyung, 2006. Panduan Lengkap Kelapa Sawit: Manajemen Agribisnis dari Hulu

maternal vitamin A status. Am Clin Nut. 74(4): 501-509. hingga Hilir. Penebar Swadaya, Jakarta.

30. Manggabarani, A. ,2009. Memaknai Sebuah Anugerah, Sumbangsih Kelapa Sawit Indonesia bagi 43. Pamin, Kabul, 1998. Seratus Tahun dan Lima Puluh Tahun Pengembangan Kelapa Sawit di

Dunia. Direktorat Jenderal Perkebunan, Kementerian Pertanian Republik Indonesia, Jakarta. Indonesia: Dari Kebun Raya Bogor Menuju Industri. Konferensi International Kelapa Sawit.

31. Malaysian Palm Oil Council (MPOC),1991. Basic Background Information on Palm Oil. Kelana 23-25 September. GAPKI.

Jaya. Pp. 19. 44. Palm Oil in Human Nutrition, 1999.

32. Mozaffarieh, M, et al. , 2003. The role of the carotenoids, lutein and zeaxanthin, in protecting 45. InfoSAWIT Data Centre, 2009.

against age-related macular degeneration: A review based on controversial evidence. Nutrition 46. InfoSAWIT Data Centre, 2010.

Journal, vol. 2, no. 1, p. 20. 47. PPKS, Indonesian Oil Palm Research Institute, 2009.

33. Muchtadi T.R., 1992. Karakterisasi Komponen Intrinsik Utama Buah Sawit (Elais guineensis Jacq) 48. Rao LG, Guns E, Rao AV., July/august 2003. Lycopene: Its role in human health and disease.

Dalam Rangka Optimalisasi Proses Ekstraksi Minyak dan Pemanfaatan Provitamin A. [Disertasi]. Agrofood Industry hi tech.

Bogor: Sekolah Pascasarjana Institut Pertanian Bogor. 49. RSPO, Roundtable Sustainable Palm Oil, 2010.

34. Murakoshi M., et al., 1992. Potent Preventive Action of α-Carotene against Carcinogenesis: 50. SEAFAST, Southeast Asian Food & Agricultural Science & Technology, 2009.

Spontaneous Liver Carcinogenesis and Promoting Stage of Lung and Skin Carcinogenesis in 51. SBRC, Surfactant Bio Research Centre, Institut Pertanian Bogor, 2009.

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52. Schalch,W,et al.,2007,Xanthophyll accumulation in the human retina during supplementation
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of Biochemistry and Biophysics, vol. 458, no. 2, pp. 128-35.
53. Scrimshaw N.S., 2000. Nutritional potential of red palm oil for combating vitamin A
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Fluida CO2 Superkritik. [Disertasi]. Bogor: Sekolah Pascasarjana Institut Pertanian Bogor.
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Role in The Food and Fuel Debate, Tan Sri Datuk Dr. Yusof Basiron and Dr. Yew FK.
58. Wang, W, et al. 2007. Effect of dietary lutein and zeaxanthin on plasma carotenoids and their
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66
TA M SI - D M SI P rof il e
I
ndonesian palm Oil Advocacy Team (TAMSI – DMSI) was formed under
the mandate given by DMSI based on the needs and commitment of
the Indonesian Oil Palm stakeholders to develop sustainable oil palm
industry, during:
(1) Sawit Linkers meeting on April 23, 2010
(2) Oil Palm Industry Chairpersons and CEO’s Discussion Forum on May 24,
2010
(3) DMSI Meeting on August 9, 2010
(4) Sawit Linkers Meeting on August 12, 2010.
TAMSI-DMSI therefore started its activities in cooperation with various
parties, such as academic, researchers, government and media players.
Various discussion forums have been conducted in order to build a public
discourse about issues of oil palm industry in Indonesia, and the world.
Indonesia’s position as the largest CPO producer that has been
achieved three years ago, provides the bargaining position of strength to
play an important role for the world’s palm oil in the future. Even though
Indonesia’s oil palm industry has been conducting sustainable farming
practices since the beginning, but information on this practice is very
limited, so that it is necessary to advocate such farming practices to the
world.
Various criticisms directed against Indonesia palm oil industry in the
recent time, has a negative impact to the sustainability of the oil palm
industry in the future. Therefore, allegations of errors being loaded, such
as wild fires and destruction of forest, the killing of wild life, indigenous
land hoarding and other misconducts have to be handled and overcome
wisely.
Various business development and improvement of sustainable oil
palm plantations have been done, much progress have been achieved,
but still require hard work, through the stronger cooperation between the
oil palm industry stakeholders. Support is needed from the government
to strengthen the leading position of Indonesia as the world champion
producer of CPO, and to establish the Indonesian sustainable development
of oil palm industry. Efforts from the private sector to improve sustainable
oil palm farming practices have also be increased. Similarly, research and
development of oil palm industry have to be improved, to help the value
additions of the CPO and other oil palm products, as well as to improve
sustainability of Indonesia’s oil palm industry in the future. Finally, TAMSI –
DMSI warmly invite all parties to engage actively in building sustainable
oil palm industry development in Indonesia.
 Dewan Minyak Sawit Indonesia
(Indonesian Palm Oil Board)
Plaza BII Menara 2, Lantai 33
Jl. MH. Thamrin No. 51 Jakarta Pusat 10350 Indonesia
Telp. (62-21) 318-1255, Faks. (62-21) 318-1256
Email. ipob@dmsi.or.id, website : www.dmsi.or.id