Chemical Engineering Department, Faculty of Engineering Sebelas Maret

University of Surakarta, Indonesia

Palm Oil - Challenges and Opportunities in
Sustainable Development
1.Abdul Kadir M. Jamal
(Class of 2009)
Passport Number : V 283947
E-mail Address
:
munsheed_mania@yahoo.com
Contact Number : +62 856 4229 6733
2. Rina Sari Utami (Class of 2009)
Passport Number : A 1447154
E-mail Address
:
rina_utami@rocketmail.com
Contact Number : +62 856 4234 3082

Universiti Teknologi Malaysia 16-18 December 2011

1

Definition Challenges 3 4 The Sustainable Industry Economic Sustainability Social Sustainability Environment Sustainability 5 6 7 8 Conclusion and Future Development Bibliography 13 Table of Content 2 .

“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (International Institute for Sustainable Development) ECONOMY SUSTAINAB LE DEVELOPME NT ENVIRONME SOCIAL NT Sustainable Developmen 3 .

Challen g Challen es ENVIRONMENT es Severely damaged & in need of drastic action SOCIAL ack of self awareness & self responsibility from individual in terms of sustainability CONOMIC & INDUSTRY Dependent on fossil fuel nwilling to spend money on research and environmental action which deemed non-profitable GOVERNMENT BODY .Tendency to ignore sustainability & focus more on instant result . not the world as system 4 .Regulation & legislation are sometimes taken based on political consideration and prefer on short time benefits.

High Product .Cool Prospect Socially -Self Sufficient Energy -Zero-Waste Product -GHG Friendly 5 .Job Provider Value .Rural Economy Vehicle .High Demand Environmentally -Soil Friendly . the Sustainable Indus Economically .High Income .m Oil Industry.

9 20 11 4. Bright prospect for the future Economic 6 . Biggest agriculture export commodity in Indonesia ($14. High consumption lead to high demand World Palm Oil Consumption 70 60 60 45.3 US100 Dollar 0 Source : World Growth.1. Malaysian export value around US $19.5 billion in 2008).5 10 1.7 0 400 Production Cost (2008) 350 300 200 150 199. 2011 Palm Oil is now account 34% of world vegetable oil consumption 2. In 2007.1 Million Ton 50 40 30 21.6 billion 3.

2008) 4.682. 1997) Year Employment Area Palm Oil Poverty in Planted Productio Indicator Agliculture (ha) n (tons) 1995 44 % 2.480.1.6 % 2005 45 % 5.000 84.000 11.000 4.635 families from 1960-2006 (Ahmad Tarmizi.025.8 % Source : World Growth. A good means to spread prosperity via transmigration.00 0 53. Seven times higher of average income than farmers of other crops (Hardter et al. Felda. 2009 Social Sustainability 7 .454. More than 2 million people working on this sector by 2006 in Indonesia and can grow up to 6 million (Goenadi. the largest producer of palm oil in Malaysia resettled 112. 2009) 2. The second biggest agriculture product in Indonesia (41% of the land owned by small holder ) 3.

1. Soil Friendly 30 years of Oil Palm Short Rotation Crop • Land cleared once during the period  less damage to the soil • Mature trees replaced once during the period  minimal impact to soil • Less impact on soil erosion and silting of waterways • Less fuel used in field preparation and crop support activities • Land cleared annually  soil damaged annually • Crop has to be replaced every year  higher impact to the soil • Processing makes possibility of soil erosion and waterways’ sliting higher • More fuel used in field preparation and crop support activities Environment 8 .

Self Sufficient Energy Mass and Energy Balance: 1 ton FFB Energy needed for production : 20-25 kWh & 0.73 ton steam 167 kg 140-200 kg CPO Oil palm Industry 600-700 kg POME (liquid waste) ≈ 276 MJ Biogas 190 kg fibers & kernel 9.4 kg N2 as 120 kWh Fertilizer 230 kg EFB Potential Generation 200 kg CPO ≡ 100 kWh free energy Indonesia’s CPO Production (2009) = 18 million ton ≡ 9 GW 9 .2.

2 GJ.5 0 palm oil soybean rapeseed Less energy use LOW COST Economicall y Beneficial and Sustainable10 .2 1.1 GJ ENERGY RATIO Area Requirement palm oil rapeseed 10 8 soybean 6 4 2.1 ton of palm oil needs 19.5 2. 2009 9. generates 182.5 3 2 0.26 Hectare Land Used / Ton Production Less land use to generates more oil Source : World Growth.

Ph. Center for Science in the Public Interest.Rainforest Loss in Indonesia and Malaysia due to Oil palm Animal Number Asia elephant 2800 forest destroyed Rainforest Birds 112 burned in wildlife Sumatran Orangutans 12000 future plantation Sumatran rhino 50 current plantation Sumatran tigers 250 0 50000 (ha) 100000 Source : Ellie Brown.D. 2005 Crude Palm Oil = Cruel Palm Oil? 11 ..

07 3.051 4.025 4.21 3. palm oil has the lowest carbon footprint among other crops • Palm oil waste can be processed to make other product Table : Palm Oil Industry Performance in Indonesia and Malaysia     1995 2000 2005 2008 GHG emissions Indonesia           1. The animal’s habitat in the protected forest will not be damaged.68 2.540 3.84 Oil x1000 11.They say : Palm oil industry is the biggest contributor of deforestation because of the area expansion which results in animal extincion.17 2.86 18. and yield per ha.001 2 0             palm oil soybean Malaysia           rapeseed x1000 Area planted ha 2.58 0.21 1.377 4. • For the basis of 1 ton oil produced. 3. cultivation method.69 3.09 production ton 4.56 x1000 Ton CO2 / 1.488 12 Source : World Growth.158 5.454 7.95 Yield ton/ha . high GHG emission and waste management problem We say : • Palm oil plantation is allowed only in land zoned for agriculture.480 7.39 Ton Oil Area planted ha 2.008 Yield ton/ha 2. • The growth of productivity is not merely because of area expansion but also fertilizer application rate.

Implying a balanced approach to reduce environment impact over short and long term 3. social. and economic benefits 2. Finding market and technology for the production of high value products from palm oil and its derivatives 4. Improving financial. Committing to maintain the high standard of the industry to create “Zero-waste Production Process” by full use of its by-product as alternative energy source or other utilizations 13 .Palm Oil Industry is Environment-friendly and Sustainable HOW ? 1.

p. June 2004. et all. Y. Rainforest & Wildlife.A success story”.. 5. Intensive Plantation Cropping. A Source Of Sustainable Food and Energy Production in The Tropical Rain Forest Areas In Southeast Asia. 2005. Vol. Indonesia World Growth.. S. Vol. Issue 1: 7-11 Basiron.. Y. 2008. World Growth Palm Oil Green Development Campaign. Center for Science in the Public Interest. 1997. 2004. Malaysia’s Oil Palm — Hallmark of Sustainable Development. 1. No. Palm Oil-The Sustainable Oil.Bibliography Ahmad Tarmizi. “Felda. Washington Hardter. W. Vol. 1. Issue No. Arlington . Cruel Oil : How Palm Oil Harms Health. Perspective on Indonesian Palm Oil Production. 91. The Oil Palm and Its Sustainability. 4 Brown.. Chow. page 93-102 Goenadi . Journal of Oil Palm Research Vol. September 2009. Forest Ecology and Management. 16 No.. A. O. 1-10 Basiron. 12 May 2008. Y. Global Oils & Fats Business Magazine. Ph. 2008. D. R. Bogor. 2008. dan Hock. Paper Presented in “Rapat 2008 Musim Semi International Food & Agricultural Trade Policy Council”. Global Oils & Fats Business Magazine.5.