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Vol. VIII No. 5 MAY 2015www.infosawit.com

EDITION MAY 2015 91

ENLARGING PALM OIL PLANTATION IN THE BORDER AREAS LIKE DOUBLE EDGED KNIFE

ISPO REGULATIONSUSCEPTIBLE WITH PROBLEMS

20

26

46CPO SUPPORT FUND (CSF)SUPPORT BIODIESEL

INDUSTRIES?

SURyANTO BUN, CHIEF EXECUTIVE OFFICER SINAR MAS 3 PLANTATION

PARNERSHIP TO INCREASE THE WELFARE OF INDEPENDENT FARMERS

Prohibited from disseminate and copying in part or whole without permission of InfoSAWIT editorial


General In Chief/Editorial in Chief Ignatius Ery Kurniawan

Business in ChiefHieronimus Erwin Indrawan

DirectorsProf. Dr. Bungaran SaragihProf. Dr. Ani SuryaniProf. Dr. Erliza HambaliProf. Dr. Purwiyatno HariyadiAhmad Redzwan, MBAIr. Derom BangunKris HadisoebrotoSeman S. SuhendaF. Rahardi

Managing DIrectorAtep Yulianto Irawan

JournalistsDaniel TampubolonThomas FatmaRidwan SaidiWinda Stephani Aritonang

Disign &LayoutDuta M Dinata

WebsitePrasetya Widodo

Photographer:Ferdinand Ernando Novialdi

Business Staff Febrilian Yesri

PublisherPT. Mitra Media Nusantara

Editorial / Marketing AddressJl. Raya Leuwinaggung No. 55Rt 003/03 Kel. LeuwinanggungKec. Tapos-Depok, Jawa Barat 16456Telp. 021-30296425, 021-93733553Hp. 0812 872 99959 (Redaksi)Fax. 021-84305977

websitewww.infosawit.comwww.palmoilmagazine.com

[email protected] [email protected]@infosawit.com

ISSN : 1978-9815

Editorial accepts the articles or news about palm oil (industrial crops). The articles should be better completed by supported photos. The articles could be sent by e-mail, fax, or post to InfoSAWIT. Editorial could edit the article(s) as long as it doesnot change the contents.

Supported by :

EDITORIAL RECORDS

PALM OIL THE LIVING SOURCE

numbers, such as, in East Kalimantan, namely in Subdistricts of Muara Wahau and Kongbeng.

In the regions, there are lots of people depending their lives on palm oil. But for they do not really understand to cultivate it well, they have low productivities. Luckily, there is one national palm oil company, PT Sinar Mas Agro Resources and Technology (SMART) Tbk, through its subindustries, PT Kresna Duta Agroindo and PT Tapian Nadenggan do the partnership programme.

As the results, the independent farmers’ productivities get better and increase their income directly. Most people of East Kutai believe, palm oil is their living source. To know this more, dear readers could read it in the Focus.

Besides the partnership programme prospect with the independent farmers, in this edition, we also discuss about the government’s plan to enlarge and develop palm oil plantation in the border area. But the policy was against the civil society because the plantation is suspected to damage the environment. Is the suspect true? To know the answer, it can be read in Binoculars.

Of course, beside the two topics, there are lots of interesting informations that we give you, dear readers. Having no further words to say, we please you to read piece by piece, this edition. Have a nice reading!

RegardsEditorial

Last April, there was a CPO Supporting Fund (CSF) policy for it will be the source to support the national biodiesel mandatory policy which is

considered to be far from what it is hoped.

By making the policy, the government hopes, the palm oil plantation businessmen could sacrifice so that the biodiesel programmeruns. But the government forgets, for such a long time, the palm oil commodity has sacrificed.

For example, the making of Export Taxes (ET) which the name is substituted to be Out Fee (OF). The fund of the policy has directly been in the state budget revenue but it could not be used to develop national palm oil industries.

National palm oil industries could develop as if the government is not involved in it. Many regulations, which corne and press, these industries keep raising. In addition, the negative issues and trade obstacles decrease the national palm oil industrial competitiveness.

But national palm oil industries are strong, able to pass the economical climate conditions and the unconducive regulations. These industries could highly contribute to the national economy.

Besides contributing to the national economy, palm oil commodity could be the main choice for the people to be the living source. It is proven, lots of the people cultivate palm oil in independent ways and in the plasma scheme programme. It is noted, the two ways are fantastic in


INFO

Contents ADVERTISER INDEXBack Cover 1Perkebunan Sinar Mas 3Sinar Mas Land Plaza, Tower II, 28th FloorJl. MH Thamrin No. 51, Jakarta 10350Telp : +62 21 3181 388 Fax. : +62 21 3925 778

Back Cover 2Politeknik Citra Widya EdukasiJl. Gapura No. 8 Rawa Banteng, CibitungBekasi - Jawa BaratTelp +6221-82603550. Fax: +6221-8254970

Back Cover 3PT Bina Sawit MakmurJl. Basuki Rahmat 788 PalembangTelp/HP (0711) 416111/ 08117149000Email : [email protected] : www.binasawitmakmur.com

Back Cover 4InfoSAWIT Storewww.store.infosawit.com

Back Cover 5E-Directory InfoSAWITJl. Raya Leuwinanggung No. 55Rt 003/03 Kel. LeuwinanggungKec. Tapos-Depok, Jawa Barat 16456Telp. 021-30296425

Back Cover 6PT Dami Mas SejahteraSinar Mas Land Plaza, Tower II, 28th FloorJl. MH Thamrin No. 51, Jakarta 10350Telp : +62 21 3181 388 Fax. : +62 21 3925 778

Run on Page : 36Institut Pertanian Stiper INSTIPERJl. Nangka II, Maguwoharjo, Depok, Sleman Yogyakarta 55282 (Ringroad Utara)Telp : +62274 -855 478 Fax. : +62274 -855 479Hotline : 0813 2881 9580, 0878 4320 8239, 0857 2777 5225

Run on Page : 37PT Primacom InterbuanaInternational Financial Centre,16th floorJl. Jend. Sudirman Kav 22-23 Jak-sel 12920Telp : +6221-522 4750 Fax. : +6221-544 4745

4 EDITORIAL RECORDS

6 LENS - COMMENT

7 PEOPLE THEY TALK ABOUT NATIONAL BIODIESEL

8 EDITORIAL SUPERIOR SEEDS BECOME THE CHOICE

23 EXPOSE INTERNATIONAL PALM OILEXHIBITION (INPALME)

26 REGULATION ISPO IS STILL SUSCEPTIBLE WITH PROBLEMS

31 PRICE INFO

32 AGENDA-FLASH NEWS

34 BPPT INFO PALM OIL CHEMICAL RECONSTRUCTION FOR SPECIFIC NEEDS

38 CWE INFO CWE POP, 2017 TARGETS TO BE ADVANCED HIGHER EDUCATION

40 FARMERS INFO WHY SHOULD MAKE COOPERATION

44 SUSTAINABILITY INFO SUSTAINABLE PALM OIL MARKET TRANSFORMATION WITH INDEPENDENT FARMERS

46 COMMODITY TREND SUPPORT BIODIESEL INDUSTRIES?

48 INFO FROST & SULLIVAN

51 BOOK INFO

52 MIRROR

SHOULD CSFBE LIKE OF

10 FOCUS

SMART SUPPORTS THE FARMERS’ PRODUCTIVITY

20 BINOCULARS

ENLARGING PALM OIL IN THE BORDER AREAS JUST LIKE DOUBLE EDGED KNIFE

28 PROFILE

PARTNERSHIPTO INCREASE THE WELFARE OFINDEPENDENT FARMERS

Suryanto BunChief Executive Officer Sinar Mas 3 Plantation


LensaCOMMENT

PALM OIL, MADE OF INDONESIA, FOR INDONESIA!

Now, the government has given more attention to national palm oil plantation industries. One of it is by increasing the mixture of crude palm oil (CPO) to diesel fuel or

famously known as biodiesel 15% (B15). So what the government has run should be

supported by palm oil businessmen. But both the government and the CPO producers should have the best and rightest strategies so that the absorption of the biodiesel could run well in the future. It is possible that if the B15 programme is successful, the target of B20 and B30 will be successful too in the future.

So the usage of CPO will be absorbed in domestic country and palm oil industries could well grow in Indonesia and could be more advantaged for the domestic needs. So palm oil is made of Indonesia and for Indonesia.

MartiasPresident Director of Surya Dumai Grup (SDG) Gedung Surya Dumai GroupJl. Jend Sudirman 395, SimpangempatPekanbaru, Riau

Happy among the palm oil plantations. Location : Padang Halaban, North Sumatera

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Mining activities are convinced to have many negative effects for the environment.Location : Berau, East Kalimantan

The needs of employee get higher but the availibility of the employee is not well preparedLocation : Siais, North Sumatera

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Biodiesel Absorptions Increase CPO Price

They Talk About National Biodiesel

About To Increase CPO Price

The implementation of the increasing biodiesel mixture 15% policy to diesel fuel will decrease the crude palm oil

(CPO) stocks in the international markets. This is hoped to increase the CPO price.

In 2014, President Director of Surya Dumai Group, Martias said, the CPO derivative exports reached about 15 millions tons. The increasing biodiesel mixture will increase the CPO absorption in the domestic markets.

Martias A.K.A Pung Kian Hwa toInfoSAWITpredicted, if the policy could run well, the national CPO exports will be 1 to 2 millions tons only. “So the policy could support the downstream industries, and increase the CPO price to be US$ 750 per ton,” Martias explained. q T3

PEOPLE

Cooking Palm Oil Stocks Are Good!

The emerge of national biodiesel mixture absorption policy which was 10% (B10) and now 15% (B15) once made a concern that the crude palm oil (CPO) stocks could decrease for cooking oil, margarine and

other products in CPO – base.Managing Director Sinar Mas, Gandhi Sulistiyanto

ensured, the CPO stocks for kinds of products in palm oil – base are still good. The emerge of the policy will increase the CPO price in international markets. The farmers and the CPO processing companies will get the positive effects. “It will not disturb the CPO stocks for the other products because Indonesian CPO productions are abundant,” Gandhi recently said in Jakarta. q T3

MartiasPresident Director of Surya Dumai Group

The increasing of biodiesel mixture policy about 15% to diesel (B15) is hoped to increase the crude palm oil (CPO) price so it could reach

US$ 750/ton.Beside the increasing price, the

increasing biodiesel will directly be positive to the farmers for the fruit price will increase too. That is why, the man who graduated from Mechine Engineer, Singapore National University said, the government should be consistent to run the policy.

In addition, there are lots of national biodiesel stocks. In last year, the national biodiesel consumption reached 2 millions tons. For the additional mixture, in 2015, the national biodiesel could increase 2 millions tons more,” Bachtiar Karim recently said in Jakarta. q T3

Ghandi SulistiyantoManaging Director Sinar Mas

Bachtiar KarimPresiden Director of Musim Mas Group

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Ignatius Ery KurniawanGeneral in Chief

SUPERIOR PALM OIL SEEDS BECOME THE CHOICEPALM OIL FARMERS ARE WIDELY SMILING IN THEIR FACE FOR HAVING THE HIGH PRODUCTIVITIES. THEY ARE GLAD FOR THEIR PALM OIL PLANTATIONS COULD HAVE HARVEST FASTER WITHIN MAXIMAL PRODUCTION.

In a meeting among the farmers, Ministry of Agriculture, and palm oil plantation company some time ago, farmers revealed their sad stories, such as, they had never been successful to

have palm oil plantation.The plantations which have been cultivated for 5 years could not produce palm oil fruit. While the neighbourhood ones could produce in just 2,5 years.

A palm oil farmer, Bejo (45) was so sad for having worked hard to enlarge his plantation for about 5 years. But what he hopes to his plantation could not produce in lots of numbers. The bad smile in his face described his bitter life for having no good harvest.

What Bejo said is a description of

hundreds or even thousands palm oil farmers in Indonesia which stuck in a waiting for the harvest (fruit) from the plantation they have planted. Actually, Bejo’s story is the answer of many questions about the low productivity which the national palm oil farmers produce.

If the palm oil trees could not be in fruit, or in low productivities, the first and simple question is, where the seeds do or did derive from? The common or general answer is from the friends or somebody distributing the palm oil seeds in a simple plastic pack, without having no brand.

Some minor answer will say, from the seed producer A or B without knowing about the specific things of the superior

EDITORIAL

seeds. Though the answer has meaning, but it needs to see the cultivation practices because they are not proper to what the main plants need.

So it is important to know the superior seed producers, and the cultivations. As a matter of fact, there are lots of fake seeds in the society. Then the people’s plantations get stuck for the usage or planting fake seeds which have no production.

Furthermore, if palm oil plantations are not planted by superior seeds, the main plants will be differently and physically seen from the neighbourhood ones using superior seeds. When they are in fruit, it will be seen physically for the superior seeds are relatively good. If the trees


are from superior seeds, they have the additional benefits, such as, the trees will be relatively same in height. But it doesnot happen in the trees from fake seeds.

Do Faster Replanting Programme.The sooner, the better. That is the

slogan from famous national politic figure who now becomes the Vice President of Indonesian Republic, Jusuf Kalla. People’s palm oil plantations are far beyond the hope. It needs replanting programme. Though the government’s programmes, such as, the replanting programme has come to an end, or there is no such programme, the farmers should be ready in finance, including the work modals.

If the farmers have no financial ability, the farmers could still do replanting programme, through the partnership programme with the company (ies). The

farmers are the partners of the palm oil company (ies). Actually this has been running for such a long time. But for the farmers have little knowledge about the partnership programme, they are difficult to be asked for joining the programme.

It is important to make councelling and guidance to palm oil farmers. The regional government and the palm oil plantation company (ies) should do too. If the things are not done continously, the farmers will be far from what it is called, welfare.

It is important that the government and palm oil company (ies) support independent farmers to make them more independent. The independency could happen from the partnership with the palm oil company (ies) and the government’s supports. But if it is successful, they will be independently

cultivating their plantations in the future.There should be quick and right

decision if the farmers’ plantations are not in fruit in three years. There should be replanting programme. It can be done by making partnership with the company (ies). It is better too, the main plants should be changed to have fast and maximal harvests.

If the superior seeds are difficult to find, it is important too to know the cultivation, namely the usaage of the fertilizers. It is been the general secret that there are lots of fake fertilizer in the society. So do not be easily to be influenced by the cheap fertilizer, namely the brand is not famously known. Once again, the partnership with the company (ies) is the main choice so that the farmers could have wide smile again.

Supiyantoand his wife get the benefits of planting palm oil through the partnership scheme with PT. SMART Tbk,.Locating in Village of RantauPanjang, Subdistrict of Telen, District of East Kutai, East Kalimantan Province.


FOCUS

10

Atep Yulianto I

SMART SUPPOTS THE FARMERS’ PRODUCTIVITYSUPPORTING THE INDEPENDENT FARMERS’ PRODUCTIVITY IS NOT THE GOVERNMENT’S RESPONSIBILTY ONLY. IT IS PROVEN, ONE SUBINDUSTRY OF PT SINAR MAS AGRO RESOURCES AND TECHNOLOGY (SMART) TBK., LOCATING IN EAST KALIMANTAN HAS RUN PARTNERSHIP PROGRAMME WITH THEM. NOW THE INDEPENDENT FARMERS HAVE HIGHLY PRODUCED.

The progress of palm oil plantation enlargement in Indonesia is fast enough. If in 1980, there were only about 294.560 hectares (ha), in

2014, there were 10,2 millions ha.About 44% of the national palm oil plantations belong to the plasma and independent farmers.

But the data from Ministry of Agriculture, until now, the farmers palm oil plantations are still dominated by independent farmers.

It is normal that the national palm oil productivity keeps small in numbers because the vast areas which the independent farmers cultivate are producing small in numbers too.

In District of East Kutai, East Kalimantan Province for example. Knowing that palm oil is a profitable business, the farmers are supported to

cultivate the commodity and it keeps growing until now.

Unfortunately, for having minim knowledge to cultivate it and for having limited funds, the farmers’ productivity is not good enough though their plantation could be increased more.

Knowing that, PT Sinar Mas Agro Resources and Technology (SMART) Tbk., through its subindustries PT Tapian Nadenggan and PT Kresna Duta Agroindo, locating in East Kalimantan open the chances to make partnership with the farmers within the plasma – main schemes which are wrapped in the replanting and independent farmers partnership schemes.

Referring to the companies’ informations, they have enlarged palm oil plantation in the region since 1997 through the replanting programme and has run partnership with the farmers’

plantations which cover 6.790 hectares or about 27,24% of the total main palm oil plantations which reaching 24.928 hectares.

Region Controller (RS) East Kalimantan, PT SMART Tbk., Waluya, the replanting plasma plantations cover 7 villages in District of East Kutai, they are, Makmur Jaya, Sukamaju, Margamulya, Wanasari, Sri Pantun, Kongbeng Indah, andSidomulya. “The villagers now have better economy. Before it, the villagers were workers in the paddy field and had small income,” he recently said in East Kutai.

It is clear that the increasing income, the economy in the villages has increased too. Now, after the replanting programme has run, they could get Rp 1 – Rp 2 millions per hectare per month, it depends on the age of the plants.

The increasing income is not seperated


by the best and right palm oil cultivation practices, including the usage of superior seeds from Dami Mas which highly produce in the first year of planting.

Vice President Agronomy (VPA) PT SMART Tbk, East Kalimantan I, Mulyadi said, the usage of superior seeds from Dami Mas has increased the farmers palm oil plantation productivities.

It is booked, the productivities in the first year of planting could increase the average yield about 24%. “In the first year, the productivities could reach 12 tons of fruit per hectare. In the third year, they could be 20 tons per hectare,” he recently said in Kongbeng.

In Partnership with Independent Farmers

Besides in partnership with the farmers within the replanting programme, PT Kresna Duta Agroindo also makes partnership with the independent farmers. It is done for there are lots of plantation belonging to the independent farmers around the company’s plasma farmers.

Mulyadi said, the independent farmers’ plantation were cultivated by themselves. The seeds help programme was done by the District Government of

East Kutai, through Plantation Agency with PT SMART Tbk., as the seeds provider in 2001. It covered 4.058 hectares.

Knowing that the independent farmers’ plantations were not maximal, the company agreed to make cooperation with them. Mulyadi continued, independent farmers’ plantations were planted by superior seeds and in one overlay.

The company finally made cooperation with them which was represented by Plantation Cooperation, Kongbeng Bersatu which covered 4.000 Families.

In 2012, the company directly guided them to implement best and right cultivation practices. For they are many in numbers, the company thought, it needs to make special structure to guide them officially in 2013. One assistent staff of plasma farmer guides the independent farmers covering about 600 hectares to 1.000 hectares.

The guidance is usually done by the meeting in the cooperation or worship place. The guidances are usully about the agroconomy technics, while the farmers having productive plantations are helped by giving the informations about how

to analyze the leaves, or the land if being needed to get the recommendation to the agronomy process. “We don’t force them, but only suggest,” Mulyadi said.

It is effectively proven to increase the independent farmers’ productivities. Their fruit productions keep increasing.

For example, in 2012, the total fruit production of the independent farmers reached 65.363 tons of fruit per year. But in 2013, their fruit production increased to be 74.214 tons of fruit per year and in 2014 they got 97.052 tons of fruit per year or the production increased about 23,5% than the production in 2013 in the same period.

The people’s animo to have palm oil in the regions is high enough. The chance to enlarge palm oil plantation is widely open. It is proven, in 2012, PT Kresna Duta Agroindo had given seeds credits to the farmers who want to enlarge palm oil plantation.

Referring to the company, the seeds helps covers 1.301 hectares. This was the pilot project of plama independent farmers partnership through the Plantation Cooperation Kongbeng Bersatu.

If they are in total, the independent plasma partnership and the seeds credit

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No. Cooperation Village The Numbers of Members (Families)

1. KopbunKaryaBaru JakLuay, Ma Pantun. 4542. Kopsa Prima Jaya NehasLiah Bing. 2473. KopsaSuburAbadi JukAyak, Ma Haloq, Long Segar,

Kernyanyan, Long Noran.352

4. KopsaHarapan Jaya RantauPanjang, Ma Pantun. 3005. KopsaBersama Makmur Jaya, MargaMulia,

SukaMaju, Kongbeng Indah, Sri Pantun, SidoMulyo, Wanasari.

1.600

6. KopsaRantau Sejahtera RantauPanjang. 1467. KSU PetsotsangWehea JakLuay. 62

Source: PT Sinar Mas Agro Resources and Technology (SMART) Tbk., 2015.

THE PARTNERSHIP COOPERATION IN THE REPLANTING PROGRAMME

Plasma Plantation Cooperation

The Average Farmers’ Income

2014 2015

KopbunKaryaBaru 500.000 1.000.000Kopsa Prima Jaya 500.000 1.000.000KopsaHarapan Jaya 1.250.000 2.000.000KopsaSuburAbadi 100.000 500.000KopsaBersama 1.000.000 500.000*

*in the average with the yet productive areasSource: PT Sinar Mas Agro Resources and Technology (SMART) Tbk., 2015.

THE FARMERS’ AVERAGE INCOME

Name of Plantation Areal Vastness (hectares)

Year of Planting

GunungKongbeng Plasma (GKMA) 2.214 2009JakLuay Plasma (JLYA) 1.884 2007Pantun Mas Plasma (PMSA) 956 2007Bukit Subur Plasma (BSRA) 704 2009RantauPanjang Plasma (RPNA) 980 2007


PLASMA PLANTATION

We were poor region and wear traditional dress but now, we are wealthier

Isran NoorRegent of East Kutai (2011-2015)

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cooperation cover 5.359 hectares/ It means, the entire independent and plasma farmers’ plantation – as the partners of the company – cover 12.149 hectares or 48,73% of the total main plantations.

Director of Yearly Plants, Ministry of Agriculture, Herdrajat Natawijaya said, the partnership cooperation, both plasma and independent, should keep running so the increasing of the people’s productivities could be realized. “What Sinar Mas has done is a good step and it can be imitated,” he said.

Basically, he continued, to increase the farmers’ palm oil productivities is not the government’s responsibility only for the businessmen have the same one.

Supported by The GovernmentThe implementation of partnership

cooperation among the independent farmers and PT Kresna Duta Agroindo is welcomed by the District of East Kutai

In the moment, the Regent of East Kutai was Isran Noor. He thought, the cooperation which the company and the independent farmers had run opened the opportunity to increase the regional economy. In addition, the government of East Kutai had agreed to make palm oil as the main commodity.

Referring to the data of East Kutai, there are 500 thousands hectares of palm oil plantations in the region. It is rumored too to be 750 thousands hectares. “If it is agreed to let the new forest region to be plantation, the palm oil plantations in East Kutai could be 1 millions hectares,” he recently said in Kongbeng.

To realize that, the government of East Kutai will give easiness in licence to enlarge palm oil plantation. Isran thought, the larger palm oil plantations, the better ecomomy in East Kutai will be. “We were poor region and wear traditional dress but now, we are wealthier,” he said.

The larger palm oil plantation in East Kutai has decreased and vanished the fire in the region. Isran said,”After palm oil plantation comes to the region, there is no more fire in the forest or plantation for the people maintain their areas,”

It is clear, to increase palm oil plantation through independent partnership scheme will be positive. It is known by the increasing economy and the well-prepared area from the fire. The partnership could also be the efforts to reduce the poverty in the region.


PT KRESNA DUTA AGROINDO AND PT TAPIAN NADENGGAN

MAKEPARTNERSHIPWITH INDEPENDENT FARMERSAtep Yulianto I

THE PARTNERSHIP PROGRAMME WHICH PT SINAR MAS AGRO RESOURCES AND TECHNOLOGY (SMART) TBK., DEVELOPS IS NOT ONLY BUYING AND SELLING FRUIIT ONLY. BUT IT ALSO COVERS THE SEEDS AND FERTILIZERS SUPPLIES AND THE BORROWING OF HEAVY TOOLSFOR THE INDEPENDENT FARMERS.

Suhendar (50), a villager of MargaMulya, Subdistrict of MuaraWahau, District of East Kutai now has a home like a castle. It stands on a 300 metres

square, built in the European style, has high poles in white colour. To complete the home, there is white and red vehicle in the side part of his home.

Years before, Suhendar was a transmigrant from Pekalongan, Central Java. Within a spirit and knowledge to do plantation, Suhendar encouraged himself to join the transmigration program in 1982. The programme called Coconut Hybride Main – Trans.

Living as a transmigrant was not as good as what he imangined. In 1990s his coconut plantation was fail to harvest. Suhendar told, lots of the farmers sold their plantation and went back to Java.

It is not for him, having high spirit, the former head of Village Marga Mulya in 2000 – 2007 tried his best to stay on. He and some Head of Subdistrict and D

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The seeds help is done to facilitate the farmers having the areas and want to enlarge palm oil plantation so that they are sure to plant certified palm oil seeds.

Suryanto BunChief Executive Officer (CEO) Sinar Mas 3 Plantation

Village Cooperation

Makmur Jaya KSU Jaya MandiriMargaMulya KUD Marga IndahSukaMaju KUD SawitMandiriSidoMulyo KSU MakartiSri Pantun KSU Pantun SejahteraKongbeng Indah KSU KongbengHarapanMiauBaru KSU Tunas Agri

PLANTATION COOPERATION KONGBENG BERSATU COVERS 7 COOPERATIONS


Head of Village tried to raise again having the abandonded areas as their modals.

After making a comparative study to Sugih Mountain, Lampung, Suhendar planned his coconut plantation to be palm oil plantation within the seeds help from the regional government. He hoped that the abandoned coconut plantation could be advantaged again. “Before the palm oil plantation was here, it was difficult to get Rp 50 thousand in a single day,” he said.

Beside getting the palm oil seeds from the local government, Suhendar also proposed to cooperate with one subindustry of PT Sinar Mas Agro Resources and Technology (SMART) Tbk., that is, PT Kresna Duta Agroindo to enlarge plasma palm oil plantation from the ex transmigrant areas. Then the areas were enlarged by the partnership programme with the company.

The palm oil plantation which the seeds from the regional government, started to cooperate with the company in 2000s with the independent farmers scheme. He joined the Plantation Cooperation Kongbeng Bersatu which covers 7 cooperations in 7 villages. The areas cover 4.058 hectares.

The money circles in the villages reach about Rp 72 billions per month. This happens for the people have increasing economy. Beside that, the farmer having one plot could get Rp 15 millions per month.

Superior Palm Oil Seeds HelpThe facts show, the cooperation is not

only in main – plasma partnership only or independent partnership only. There are lots farmers, and want to enlarge palm oil plantation by cooperating with Plantation Cooperation Kongbeng Bersatu. The model of the partnership is expanded by making the superior palm oil seeds credit help, which has started since 2012.

Chief Executive Officer (CEO) Plantation Sinar Mas 3, Suryanto Bun said, the seed help is done to facilitate the farmers having the areas and want to enlarge palm oil plantation so that they are sure to plant certified palm oil seeds.

Having palm oil superior seeds, the independent farmers are easy to plant them, including the payment is done in

credit. “They will credit the seeds after three years of planting,” he said.

To ensure the seeds having high productivities, by running Good Agricultural Practices (GAP), the company also guides the farmers about the agriculture technics.

It is hoped, the guidance would make the seeds produced by Dami Mas, could be well planted and could have high productivity. In the end, the farmers could get high income in the first year of planting.

Referring to the data of the company, the seeds help by the end of 2014 had been distributed for about 177 thousands seeds or equaled to about 1.300 hectares.

Now palm oil plantation areas which become the partners of PT Kresna Duta Agroindo have started to harvest. The fruits are good.


2008 2009 2010 2011 2012 2013 2014

16.077 28.617 37.915 53.531 65.363 74.214 97.052

INDEPENDENT PLASMA FRUIT PRODUCTION (TONS OF FRUIT)


The fertilizer from the company, beside being more qualified, is more economical than the fertilizer in the marketsAgus BudiwasanaChairman of Plantation Cooperation Kongbeng Bersatu

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But it is not happening to the farmers plantations using uncertified seeds. It is normal that some farmers in Village of Margo Mulyo, want to change their palm oil trees which were planted one month only from Suhendar’s trees. “They want to change their palm oil trees with the seeds from Dami Mas,” Independent Plasma Manager, East Kalimantan I, PT SMART Tbk., Suhardi said.

Now the total cooperation in independent farmers partnership which join the Plantation Cooperation Kongbeng Bersatu with PT Kresna Duta Agroindo have covered 5.359 hectares and it will be potential to grow up to about 7.000 hectares.

Besides giving superior palm oil seeds, the partnership which PT Kresna Duta Agroindo has run with the independent farmers also covers the fertilizer

procurement. Moreover, in District of East Kuati, it is hard to get subsidized fertilizers.

The farmers, for they have more knowledge about cultivating the palm oil plantation, are not randomly to choose and buy fertilizers. They who join the Plantation Cooperation trust the recommendation from the company.

Just as same as the seeds, the fertilizer procurement is paid in credit. “The fertilizer from the company, beside being more qualified, is more economical too than the fertilizer in the markets,” Chairman of Plantation Cooperation Kongbeng Bersatu, Agus Budiwasana recently said in Kongbeng.

For most of them follow the fertilizer process given by the company, the needs of fertilizers in every month get higher. It is estimated, the independent farmers will

have about 420 tons of fertilizer in every semester.

The increasing fertilizer demands also urge their productivities. If in 2005, the average fruit production just reached 12 tons per hectare per year, by the end of 2014, the farmers’ fruit production reached 30 tons per hectare per year

Heavy Tools HelpsTo run the way maintanance process

in the independent farmers’ plantation, PT Kresna Duta Agroindo also rents heavy tools within more economical price.

Agus said, there were lots of broken ways in their plantations and were difficult for the car to pass through in trasporting the fruit. So his side rents the heavy tools to repair the ways.

Referring to the company, the independent farmers have rented the heavy tools, by the end of 2015 which covered 484 HM. It is normal that when visiting the independent farmers plantation, the way in the plantation is just like the way in the company’s plantation.

Not only that, having the good way, the transporting process of the fruit to the factory could be well without any obstacles. It is normal that the fruit transporting to palm oil factory keeps growing.

Agus continued, paying half price of renting heavy tools, in general, helps them. “The paying back is done through the Villagers Cooperation,” Agus explained.

Now the Plantation Cooperation Kongbeng Bersatu grows fast within the money circle of the fruit reaching Rp 157 billons per year or about Rp 13 – 14 billions per month

But before it, the people always asked for the government’s help. Having more income, the Cooperation having members about 2.000 families is more independent. “Palm oi is our living source. It takes our children to school, provides the needs to give birth and others,” Agus said.


TO BE A FARMER NEEDS PATIENCE. SOME OF THE FARMERS WILL SELL THEIR PLANTATIONS IF THEY ARE NOT PATIENT. NOW THE INDEPENDENT FARMERS PARTNERSHIP RUNS WELL. THERE ARE LOTS OF PROFITS.

Atep Yulianto I

PALM OIL PARTNERSHIP

RUNS WELLNow there are many stories

saying that it can make millions of rupiah. Some of the farmers even turn to be New Rich Men (NRM).

It happens in the some palm oil plantation centres. The villages which were quite and far from the economy activities, now turn to be advanced ones.

The money circles are lots in numbers. Sometimes, there are some villages having money circles reaching Rp 157 billions per year. The advanced villages happen for the palm oil plantation which the farmers

cultivate.For the government and the palm oil

company(ies) also take parts to guide the independent farmers, the farmers’ palm oil plantations could increase. Automatically, they have increasing incomes.

This is the lastest condition. But before it, who thought that planting palm oil could make high income? It is said, around Subdistrict of Kongbeng and Muara Wahau, District of East Kutai,it was hard to told the villagers to plant palm oil.

In 2000s most of them thought, palm oil could not make state income.

It is no questioned, when the seeds help was given, the cooperation between the District Government of East Kutai and PT Sinar Mas Agro Resources and Technology (SMART) Tbk., - the certified superior palm oil seed provider, through its subindustry, PT Kresna Duta Agroindo, the people did not concern to plant palm oil

Irsan Noor when he was the Regent of East Kutai said, lots of people did not care the gist of palm oil seeds. The seeds were put in the side of the way or in their back yard of their homes. “When we gave

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the seeds, lots of them put the seeds in the side of the way, or in the back yard of their homes. They did not plant the seeds,” Irsan Noor recently said in Kongbeng.

But some of the villagers planted the seeds, though they felt being forced, just like Sutikno, an independent farmer who is also the member of Plantation Coopertion Kongbeng Bersatu.

Beside running a shop with good profits, planting palm oil was the second option to do. Having no concentration to enlarge palm oil, Sutikno gave the other man to nurse it.

For being thought as a successful man, Sutikno got many offers of the plantation. It is normal, his plantations get vaster. “By 2001, he had 21 hectares,” he recently said in Kongbeng.

It was the old story. Sutikno does not let the other man to nurse his plantations since 2008. Sutikno now focuses to nurse and cultivate his plantation as same as the shop is not crowded anymore. Sutikno who was from Magelang, Central Java has about 50 hectares palm oil plantations.

Sutikno admitted, his success to enlarge palm oil plantation is done by cooperating with PT Kresna Duta Agroindo. The partnership cooperation has helped him to fulfill the needs of fertilizers, beside getting the agricultural technics to highly produce. “I am lucky to cooperate with Sinar Mas,” he said.

Now Sutikno has luxurious house like the house in big city, Jakarta. One of his children is now in school in Pesantren Modern Gontor in Central Java.

Beside Sutikno, the other independent farmers who is also successful in partnership with the company is Sukarno. The man who was born in Solo, 49 years ago was working in a wood company in East Kalimantan.

He worked there from 1993 and stopped working until 2006. After that, Sukarno who is famously called as Sukar, directly focuses to develop his palm oil

plantation.Sukarno said, when he was an

employee, he had bought some transmigrants’ areas who could not afford to do plantation.

In 1993 Sukarno cultivated his plantation, but not palm oil. He cultivated coconut and in 2001 Sukarno turned over his profession to cultivate palm oil.

Working and saving, Sukarno enlarged his palm oil plantations. In addition, Sukarno has an idea to be a farmer. “My idea is to be a farmer,” he recently said in Kongbeng.

Now Sukarno has the areas within the plasm scheme reaching about 25 hectares. But the areas in independent farmer partnership scheme reach 30 hectares. “I still have about 20 hectares which are ready to be cultivated,” he said.

Having some knowledge to cultivate the plantation and being in partnership with PT Kresna Duta Agroindo, Sukarno cultivate the local villagers’ plantations to be palm oil plantaitons by making a farmer group, called Taji Buri and Tangan Kenap.

Both groups which Sukarno manages and cultivates reach 400 hectares within the average members are the Dayak Tribe covering 312 familes.

In every single month, Sukarno continued, the palm oil nursing activity needs about Rp 100 millions to Rp 120 millions. “I take the harvesters from Lombok and Java,” he said.

Sukarno has fantastic income.

The gross profits from the two groups which he cultivates, reach Rp 200 millions. The net profits after reducing the nurse and others, he could get Rp 50 millions per month. It is imaginable, about 40% from the numbers is Sukarno’s income. It is not included the income from his personal palm oil plantations.

But Sukarno is humble and saying that his income is not as fantastic as it is imagined. “Ah, I have little income,” he said with a smile, covering his real income.

It is clear, joining the partnership scheme with the palm oil company (ies) runs well for it could change the farmers’ economy who had nothing but now every thing is fulfilled.

I take the harvesters from Lombok and Java.SukarnoFarmers Group Taji Buri and Tangan Kenap

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PT SINAR MAS AGRO RESOURCES AND TECHNOLOGY (SMART) TBK

HOLD THE LOCAL PEOPLEAtep Yulianto I

NOT ONLY THE NEW COMERS ENJOYING THE SWEETNESS IN PLANTING PALM OIL, THE FACTS SHOW, THE LOCAL PEOPLE ALSO GET THE BENEFITS IN THEIR ANCERTOR LAND.

Some time ago, the villagers of Nehas Liah Bing, Subdistrict of Kongbeng, District of East Kutai which are dominated by the Dayak Wehea Tribe were

mostly planting paddy and farming. In 1990s palm oil plantation started

operating around the village of Dayak Wehea tribe. Unfortunately, they were not interested in planting palm oil because they heard rumors, saying that planting palm oil will make misery to them.

Chairman of Plantation Cooperation Prima Jaya, Mansur Bitsing (45) a villager from Nehas Liah Bing, the issue made the people reject to plant palm oil and they even did not want to be the plasma farmers.

But as time goes by, the rejection gets vague until the subindustry of PT SMART Tbk., PT Tapian Nadenggan asked the people joining in the Plantation Cooperation Prima Jaya to do comparative study to palm oil plantation in South Kalimantan.

This was one serious action of the

company to hold the local people to be in partnership with the company to enlarge palm oil plantation, to increase their economy.

The man who was active to teach kungfu Naga Sakti finally convinced and determined his mind to be in partnership with the company and he also was the actor to develop plasma farmers partnership in his village since 2008. In the beginning, lots of the people rejected the plantation for they convinced the issue.

But Bitsing patiently took the villagers of Nehas Liah Bing to be the plasma farmers partnership, guided by PT Tapian Nadenggan. “It started from making data of the members, looking for the plasma members, guiding the people until they got angry,” he said by memorizing those.

Now the villagers of Nehas Liah Bing, about 450 families mostly have palm oil plantation by having partnership with PT Tapian Nadenggan. It is said, the people who are not joining the Plantation Cooperation Prima Jaya also make

partnership with the other company (ies).The areas which cover 956 hectares

become the modals for the villagers. The negative issues have no proof at all. On the other hand, the people’s economy get increasing.

In 2011, after 3 years of first palm oil planting, the shares of plasma farmers for the members of Plantation Cooperation reached about Rp 600 thousands per month. In 2012, they got increasing income to be Rp 640 thousands per month, in 2013, they got Rp 1 million per month and in 2014, it became 2 millions per month for every plot (4 hectares). “The villagers of Nehas Liah Bing have palm oil plantations, for sure,” Bitsing said.

Their tradition after enlarging palm oil plantion is not bothered and even they independently do their tradition ceremony without others’ helps.

Besides cultivating palm oil, the villagers also manage and maintain the indegenous forests well which reaching 28 thousands hectares. “It is wrong to say


that palm oil is unprofitable because we have better economy. The wet way could be in concrete, the villagers have their own vehicles and motors,” Bitsing who has Rp 4 millions per month said.He estimated, most of the villagers will have four vehicle (cars) in the next three months.

Besides making partnership with thevillagers of Nehas Liah Bing, the other subindustry of PT SMART Tbk., PT Kresna Duta Agroindo also does the same, enlarging plasma plantation with the local villagers of Rantau Panjang, Subdistrict of Telen, locating about 30 kilometers from the center of Subdistrict of Muara Wahau.

Actually, Head of Village of Rantau Panjang, Supiyanto said, the socialization about palm oil enlargement in the region had been running since 1999, done by the company. Then it continued by making the coordinators of the village in 1999.

Unfortunately, the villagers of Rantau Panjang which are dominated by Dayak Kenyah Tepu tribe were not taking palm oil to be enlarged. “Some of them rejected it,” Supianto said in Rantau Panjang.

When plasma plantation got larger,

the villagers also got bad information so that some of them sold their plasma.

But after they got the benefits from planting palm oil and their economy got increasing, lots of the villagers started to enlarge palm oil plantation.

It is booked, the 980 hectare palm

oil plantation becomes the company’s partner or 198 of 230 familes of the villagers become the plasma partners of the company.

But, the villagers who do not join the Plantation Cooperation Harapan Jaya, about 40 to 50 families, independently enlarge palm oil through the superior palm oil seeds helps, and paid the seeds in credits to PT Kresna Duta Agroindo. They (Dayak Kenyah Tepu tribe) have better economy now.

But years before, they were worried that they would have no source of food because they depended on the rain to their plantation, gogo paddy. They got Rp 500 thousands to 800 thousands per month and relied on the rotan and gaharu.

But after they have productive palm oil plantation, exactly in 2010, they had better income. They are not worried about the food stock for they get Rp 4 millions per month in every plot (4 hectares).

The villagers of Rantau Panjang keep and maintain their ancestor tradition, such as, keeping the 110 hectare indigenous forest well. Supiyanto said, the indigenous forest should not be cultivated for the result of the forest could be used to the traditional needs.

The rumors saying that palm oil will disturb the indigenous people is not proved at all. Making the examples from Villages of Nehas Liah Bing and Rantau Panjang, which are dominated by Dayak Wehea and Dayak Kenyah Tepu tribes, enlarging palm oil plantation in partnership scheme, the people get wealthier and the indigenous forests remain good. .

Most of the villagers of Nehas Liah Bing have palm oil plantation, for sure. Mansur BitsingChairman of Villagers Cooperation Prima Jaya

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Atep Yulianto I

JUST LIKE DOUBLE EDGED KNIFE

ENLARGING 1,8 MILLIONS HECTARE PALM OIL PLANTATION IN THE BORDER AREAS

AFTER DISAPPERARING FOR ALMOST A DECADE, THE GOVERNMENT PLANS TO ENLARGE AND DEVELOP PALM OIL PLANTATION IN THE BORDER AREAS. BUT THIS WILL BE LIKE DOUBLE EDGED KNIFE BOTH GOOD OR BAD ONES.

Palm oil has become one of mainstay commodity in Indonesia. It is fast to develop. It is noted, the national palm oil plantations are about 10,2

millions hectares.It is said, the palm oil vasteness will

keep growing for the people’ palm oil vastness gets more too. They now have 44% from the total national palm oil plantations. It is predicted, the people’s or farmers plantations will be about 6 millions hectares or increase 25% in 2020.

So, palm oil becomes one commodity which helps the farmers’ lives. In addition, from some farmers’ successful stories, both in Sumatera, Kalimantan, and Sulawesi, the farmers’ incomes get better as the increasing crude palm oil (CPO) price though in this year, it is stagnant.

The guarantee to have increasing economy to the farmers has urged the people to be palm oil farmers by hoping to have better economy too.

It seems, the success of palm oil to

increase the economy in the villages has urged the government to enlarge palm oil plantation in the border areas. It was once proposed in 2007.

The plan was proposed by the government after making meeting in The Palace which the secretaries in economy attended, including the 16 plantation companies leaders who were mostly from agribusiness some time ago.

Executive Director of Indonesian Palm Oil Businessmen Association (IPOBA) Fadhil Hasan thought, the plan which the government makes is good enough, especially it will support to increase the economy of the people, and keep the state borders, especially with Malaysia.

But Fadhil thought, the plan should be serious and the area should be clear and clean categories which will not trigger the conflicts of licence. “The status of the area should be clean and clear,” Fadhil recently in Jakarta.

Enlarging palm oil plantation in the border areas, Fadhil admitted, will add

the investment in palm oil plantation industry, such as, the increasing palm oil processing factories. “Now, the company enlarging palm oil plantation in the border areas is Sinarmas only,” Fadhil said.

It is said, the enlargement of palm oil plantation will be done in the Main – Plasma scheme until the result study, mapping and the adjusment of the areas are got to be plantation area in North Kalimantan and Central Kalimantan which Ministry of Environment and Foresty makes.

Referring to the Ministry of Agriculture, it is very potential to enlarge palm oil plantations, such as, in East Kalimantan, it has about 4,2 millions hectares, in West Kalimantan it reaches about 3,2 millions hectares.

In East Kalimantan, it is predicted to enlarge palm oil plantation about 1,1 millions hectares, and in Central Kalimantan, it could be 3,1 millions hectares.

Referring to Strategic Study Center,

BINOCULARS



Ministry of Public Works, in Kalimantan, there are 8 districts having the borders with Malaysia, such as, in West Kalimantan province, they are District ofSanggau, Kapuas Hulu, Sambas, Sintang, Bengkayang, or the borders reach 966 km.

In East Kalimantan, there are three districts which directly borders with Malaysia, such as, District of Nunukan, West Kutai, and Malinau or reaching 1.038 km

The Strategic Study Center estimated, the natural resources in the border areas are very potential and have high values. Unfortunately because of the weak monitoring activities, not straight law enforcement, and the poor people around the border area, there were lots of illegal logging activities, done by Malaysian businessmen who cooperate with the Indonesian people.

Damage the Environment?The reaction in enlarging palm

oil plantation is not only from the businessmen, thinking that the policy is industrial oriented as the effort to increase the people’s economy in the border areas.

In the contrary, the environmental campaigners thought, the plan to enlarge

the palm oil plantation will be bad for the environment and the people in the border areas.

In addition, the plan to enlarge palm oil plantation in East Kalimantan and West Kalimantan is estimated to be about 584 km square. The areas are the direct borders with Malaysia or the areas reach about 1,8 millions hectares.

Sawit Watch thought, the efforts of the government will effect to the loss of the indigenous people on their forest and the natural resources which become the main basic on the indigenous people lives.

“The indigenous people really depend on the natural resource to earn their lives, especially to fulfill the needs of food, water, medicine, and the main material to build their homes,” Executive Director of Sawit Watch, Jefri Gideon Saragih said in his official statement.

Jefri continued, beside making extraordinary effects to the indigenous people, the projects and plan will be the threats to the tropical forest ecosystem in Kalimantan. The broken forest and the supportive ecosystem will trigger the extinction of the endemic species there, and the loss of the other environmental supports.

According to the analysis of Study,

Education, and Training Center, III Apparatus, State Administration Board, Samarinda, it needs best preparations in the context to support the synergic palm oil plantation development.

Such as, the clear and firm concepts of the regional spatial, so that the palm oil plantation is fixed to the goals, which is arranged based on the regional characteristics without sacrifying the environmental needs. So, the environmental effect analysis in enlarging palm oil in big scale should be seriously done. The concern about the environmental damages will not be proven by enlarging palm oil plantation.

In addition, if it is seen from the economical aspects, the policy should be confessed that it will increase the state exchange and increase the welfare of the people. There will be employment, and the making of downstream industries, and others.

To enlarge palm oil plantation in the borders is as same as double edged knife. If it is done randomly, there will be negative effects. But if it is done carefully and clearly, especially to increase the welfare of the people, the policy will be positive.

No. Positive Negative

1. Provide the new employments. Collide with some regions which are National Park and Protceted Forests in the border areas, such as, Kayan Mentarang National Park, Batang Ai and Betung Kerihun

2. Minimize the economical distance among the Indonesian People and Malaysians in the border areas

Trigger the areal conflicts among the people themselves for admitting the area ownership.

3. Accelerate the regional infrastucture development in the border areas so it does not isolate the border areas with the others.

Threat the water sources for the border areas are the stocks of water areas.

4. Prevent the illegal logging because of the palm oil enlargement in the border areas, and increase the economy, open the way access to support the monitoring done by the authority officers.

The forest turning over functin in the border areas will loss the wood and make the environmental damages for the palm oil enlargement.

5. Add the state exchange from plantation sector. Illegal logging activities will increase for the way is better and the palm oil plantation enlargement

6. Help the development acceleration in new regions in the border areas in Kalimantan.

The natural resource will be loss for the palm oil plantation enlargement in the border areas.

7. As the line border so there will be no limit movements and ease the security in the border areas.

Will make more critical areas.

The Positive and Negative Effects in Developing Palm Oil Plantation in the Border Areas

Source: Many sources, Managed by Central Data of InfoSAWIT, 2015

www.infosawit.com | INFOSAWIT EDITION mAY 2015

EAST KALIMANTAN

WEST KALIMANTAN

Palm oil plantation in East Kalimantan in 2013Province Area (Hectares (ha) Production

(Ton)Production ratei/

Yield (Kg/Ha)Employees

Immature Mature Damaged Total

EAST KALIMANTAN 284.570 198.563 6.535 489.668 538.111 2.710 124.386

Palm oil plantation in West Kalimantan in 2013Province Area (Ha) Production

(Ton)Average Yield Productioin

(Kg/Ha)

Total Employment

Immature Mature Damaged Total

WEST KALIMANTAN 97.698 275.816 1.337 374.851 861.675 3.124 176.928

Geography Regional Vastness : 129.066,64 km²Land vastness : 198.441,17 km²Sea vastness : 10.216,57 km²Borders : North > Sabah State (East Malaysia) East > Makasar Passage, Sulawesi Sea and Sulawesi Passage South > South Kalimantan West > Central Kalimantan, West Kalimantan and Serawak State (East Malaysia)Capital city : Samarinda

CLimateInclude in Humida Tropica ClimateHumidaMax temperature : 34°C (Juli-Agustus)Min Temperature : 21°C (Oktober-Januari)Rain : About 1500-4500 mm per tahunMoisture : 86 % in average

GeographyRegional vastness : 146.807 km2Borders : North > Sarawak (Malaysia) East >East Kalimantan South >Java Sea and Central Kalimantan West >NatunaSea and KarimataPassageCapital city : Pontianak

ClimateWet TropicBasahMax temperature : 33°C Min temperature min : 22°CRain : 66,6 – 681.0 mm/yearMoisture : 80-90% in average

Regional PotencyThe mainstay commodity: Palm oil, rubber, and coconutThe investment development potency in 2014: - Palm oil 944.826 Ha- Rubber 101.156 Ha- Coconut 17.272 Ha

Regional PotencyPotensi Daerah - Population : 4,073,304 (2004)- BRDP / capita : Rp 9,11 mil (2006)

Source: Many sources, managed by Central Data of InfoSAWIT, 2015

Suource: Many source, Managed by Central Data ofInfoSAWIT, 2015

Palm Oil PotencyGood potency4.221.300 ha

Middle potency304.900 ha

Palm oil potencyGood Potency3.283.400 ha

Middle potency292.300 ha


Locating in Medan,Medan International Convention Center (MICC), the exhibition to suport the development of national palm oil industries was

held in three days, starting from 23 – 25 April 2015.

The event organizer, PT International Network, Yanto Setiyoso, the reason to do the exhibition is to give the lastest informations about the supportive products in national palm oil industries from wholeover the world.

The event was attended by palm oil industries from 6 countries, they were, Malaysia, Singapore, China, India, Thailand and Indonesia. The supports of palm oil industries introduced the

lastest sophisticated technology in palm oil industries from the upstream to the downstream sectors.

In this year, the participants in Inpalme reached 69 palm oil industries. The numbers are increasing than the numbers in 2014 which reaching 59 industries only. “The target is to support the progress in national palm oil industries, namely in Medan,” Yanto recently said in Medan.

Though it is still new, the event had the visitors targets reaching 3000 to 5000 men. In the three day event, the businessmen had chances to see and try the lastest technology in palm oil industries.

The event was running from 10 a.m to

EXPOSE

7 p.m. In the spare time of the event, the visitors had chances to know more about the lastest technology which was directly told by the experts in their field.

It is hoped, it will give the new informations to the palm oil businessmen, relating to the supportive technology in palm oil industries. “Besides the exhibition, the event also introduced the products and services in the seminar so the visitors could deepen their informations from the experts,” Yanto said.

He continued, making the event, his side could contribute to the government’s programme to develop the industries and suppport the national palm oil industries. “We hope, the palm oil businessmen get the benefits from this event,” Yanto said.

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Atep Yulianto I

THOUGH IT WAS DONE FOR THE SECOND TIME, INTERNATIONAL PALM OIL EXHIBITION (INPALME) GOT THE SUPPORTS FROM PALM OIL BUSINESSMENT WELL. IT IS KNOWN FROM, MORE PARTICIPANTS WERE IN THE CEREMONY. IT IS HOPED TOO, THE CEREMONY BECOMES THE SUPPORT TO DEVELOP NATIONAL PALM OIL INDUSTRIES.

INTERNATIONAL PALM OIL EXHIBITION (INPALME)

SUPPORT TO DEVELOPPALM OIL INDUSTRY


Dr. Ir. Purwadi, MS

EKSPOSE

Wawancara Rektor INSTIPER, Dr. Ir. Purwadi, MS

AS ONE HIGHER EDUCATION (UNIVERSITY) WHICH GRADUATES THE BEST HUMAN RESOURCES IN PLANTATION AND AGRICULTURE SECTORS, AGRICULTURE INSTITUTE STIPER OR INSTITUT PERTANIAN STIPER (INSTIPER) TARGETS TO BE THE BEST UNIVERSITY.

G2G INSTIPER 14/19INSTIPER ALWAYS WANT TO BE THE BEST ANDTHE ADVANCED UNIVERSITY

Institut PertanianStiper (INSTIPER) stood in 1958. There are many good and bitter experiences. The directors also substitute. There are lots of changes and development happening

in the institution. In the leadership of Dr.Ir. Purwadi, MS as the director, there have been many sustainable policies which INSTIPER does.

G2G INSTIPER 14/19 A Gold Project

In the 56th Dies Natalison December 6th, 2014, the Director officially launched a Gold Project, that was called, Go 2nd Growth (G2G) INSTIPER 14/19.

The G2G INSTIPER 14/19 project is to realize that INSTIPER is always be

the best and advanced higher education in palm oil plantation, especially, palm oil plantation.

G2G INSTIPER 14/19 is the second phase programme which follows and continues the development succeed in the 2009 – 2014 as the higher education developing special competence, such as, palm oil and others.

The programme is designed because of the challenges relating to develop the gradutation competence which the developed plantation management and the developed higher education regulations which government does.

The two challenges need to be aware and need to re-engineer the education system in INSTIPER.

The plantation managements have changed. The human resources in plantation managements are not only about the competence in agronomy techics but also in non technics, such as, social, area conflicts, employeement, environment, and regulations. Some planters even say that the non technical competence is needed now and then. So if the non technical competence cannnot be managed, the technical one will be stucked. The plantation human resuource is forced to be smart, creative, innovative and adaptive.

The regulations in the higher education which the government has made give the new challenge to increase their graduates. In the future


the educational curriculum of the undergraduate student should be adjustable to the Indonesian National Work Competence Standard. The government should give chances to develop the profession programmes through Agriculture/Plantation Engineer Profession Programme.

How does INSTIPER face the challenges?

First of all is to re-engineer the educational system. There will be changes and innovations to increase the educational result quality. It starts from the Orientation to know the Campus and Plantation, study, practice, field practice, apprentice, people service, and the writing of essay.

For example, the orientation to know Campus and Plantation will be hoped to build the students’ strong character.

The study will be increased in small class within the U shape. In the other word, the students’ seat will be put in the form of U. This is aimed so that the interaction among the lecturer and the students could run well. There will be Student Centre Learning with e-learning supports, including the making of shopping mall subject.

In the field practice, for such a long time, the students directly work in the plantation company (ies). This makes the students’ basic competence not strong. Why? The field practice in the plantation company, actually, makes the students understand to build the skill in arranging the work in the industrial (company) scale. But the target to achieve in the field practice is to build the skill based on the knowledge and work competence in the miniplant scale. The skill based on the work competence in the industrial scale will be got by the students when they

have apprentice in palm oil plantation. So the field practice will be done in the plantation installation which the campus has, such as, KP2 Ungaran and Pilot Plant unit which the facility and the management will be increased too.

The people service will be done as same as the apprentice programme so that the apprentice will take 4 months to run which was 3 months only. In the realization, the students in the work days, from Monday to Friday do their practice in the plantation while in Saturday, they should make people service around the plantation. The writing of essay will be 50 percents about the direct work in the company where the students did their apprentice. So the research will be more direct applicative and usefull to the company,

The development of the competent human resources needs every side’s supports. So to build new progress, G2G INSTIPER 14/19 gets the supports from the companies partner through the educational programme within University – Industry Partnership model.

With the other supports from the strategical partners, INSTIPER believed that the institution could educate competent human resources, just like the needs of competence in palm oil plantation in the future.

INSTIPER will be successful to make the change and be the best and advanced university (higher education) in special competent education, namely, The Undergraduate in Palm Oil Plantation, Plantation Business Management, Derivative and Palm Oil Cultivation Technology, Palm Oil Industrial Engineer and other specific competence, such as, The Undergraduate in Plantation Infrastructure and Mechanism, Bioenergy Industry Tecnology, Forest Cultivation Unity Management and Industrial Plantation Forest.


Atep Yulianto I

THOUGHT IT IS MORE DETAIL, THE EMERGE OF THE NEW REGULATION IN INDONESIAN SUSTAINABLE PALM OIL (ISPO) HAS STILL SOME PROBLEMS. THE TECHNICAL PROBLEMS WILL BE TO IMPLEMENT THE SUSTAINABLE PRACTICES IN INDONESIA.

The implementation of sustainable practices which is written in the Regulation of Secretary of Agriculture No. 11/Permentan/

OT.140/3/2015 about the Indonesian Palm Oil Certification System still has problems.

The regulation, as the substitution of the previous regulation (Regulation of Secretary of Agriculture No.19/Perementan/OT.140/3/2011) is more detail and makes sanction threat.

But the policy is shadowed by technical problems, such as, the ISPO Commission has limitation in the court process for it involves many departments in Ministry of Agriculture. So this will slow down the judgement process. Beside that, the other problem is that many companies join the ISPO certification.

The judgement process in the plantation class in all Plantation Agency

in the regions, will mostly be in waiting lists or it is based on the valuation demands from the plantation company.

Bustandi Jamal from ISPO Certification Board, PT Mutuagung Lestari thought, the limited auditors are also the next problems which make the late auditing process from what has been made before.

It is normal, Bustandi predicted, such problems will block the ISPO process to run effectively. There are lots of problems which repeat the ISPO process in the previous period. (read InfoSAWIT March Edition 2014, ISPO Improving or Decreasing the Image)

What PT Mutuagung Lestari has calculated, the problems will effectively make ISPO process reach 2,65% per year. If this happens, the target to get ISPO certification will not be out of target.

But if the government wants that the ISPO certification target could be finished

REGULATION

REGULATION OF SECRETARY OF AGRICULTURE NO. 11/PERMENTAN/OT.140/3/2015

Still Susceptible with Problems

No Requirements

1. Plantation Business Licences are:a. Plantation Business Licenceb. Cultivation Plantation Business Licence.c.Processing Plantation Business Licence.d.Documents of Lists of Plantation Business.e. State Licence in Cultivation Plantation Business Licencef. State Licence in Plantation Industrial Businessg. Licence/Agreement from Secretary of Agriculture; orh. Plantation Business Licencewhich is published by Coordination Investment Agency on behalf of Secretary of Agriculture.

2. The rights on the land according to the available regulation in land.

3. Environment Licence4. The making plantation business

grade I, grade II, or grade III from the major or regent, governor or general director according to their authority.

Source: Attachment of Regulation of Secretary of AgricultureNo. 11/Permentan/OT.140/3/2015


in 2020 completely, the ISPO process will effectively run averagely 16% per year. In the other word, the palm oil plantation companies getting the ISPO will be 192 companies in every single year. “Or the companies getting ISPO certification will be 16 companies per month,” Bustandi recently said in the seminar of ISPO in Jakarta.

So all the classical problem which in the ISPO certification process since 2011 should be solved. These will be paracite to the ISPO certification process in the future.

Until now, referring to ISPO Secretariat, the companies getting plantation classification reach about 831 companies – 600 of them could continue the ISPO process. Secretary of ISPO, Rosediana Suharto said, all companies have had business licences and palm oil factories.

From the audit report in the ISPO Secretariat, 172 companies have been audited. 63 companies had passed the ISPO certifications within the total plantations reaching 558.383 hectares and the CPO productions reach about 2,9 millions tons. The rests about 109 companies are in the process in ISPO

Secretariat.It is estimated, the companies

saying their readiness to join the ISPO process could be 450 palm oil plantation companies.

Threat of SanctionRosediana claimed, the ISPO

regulation which the Secretary of Agriculture had signed on March 18th, 2015 is more detail than the previous regulation. The reasons, all ISPO activities are in details with the threat of sanction.

The sanction is not only to palm oil plantation companies which seem to be reluctant in getting ISPO but also for the Certification Boards which make some mistakes to plantation companies. “If the Certification Boards make the mistake, there will be sanction. But it didnot happen in the previous regulation,” Rosediana said.

Beside that, the plantation companies which do not propose the application letter to get ISPO certification because they still deal with the rights completion process by the end of 2014, according to Article 3, Regulation of Secretary of Agriculture No. 11 / 2015, the companies have chance in the next six months to

The companies having Plantation Class Classification reach 831 companies.172 companies are being audited in the ISPO Commission 63 companies pass the ISPO, 109 are still evaluated by ISPO Commission

Thn Plantation. The Companies

passing ISPO

% effectivity

Indonesian CPO Total

Production ( Tons)

% efektifitas

2013 40 3,33 1.490.813 4,97%2014 23 1,92 1.490.813 5,00%2015 192 16,00 4.500.000 15,00%

2016 192 16,00 4.500.000 15,00%2017 192 16,00 4.500.000 15,00%2018 192 16,00 4.500.000 15,00%2019 192 16,00 4.500.000 15,00%

2020 192 16,00 4.500.000 15,00%1.215 29.981.627 15,00%

Jumlah 1.200 30.000.000x1 = the rate per year passing the ISPO = 192x2 = the rate per year passing the ISPO ISPO = 16

Targets of Plantation Companies in getting Certified ISPO - 2020list their companies in getting ISPO certification. If they do not do it, they will have decreasing plantation class grade.

In the regulation, it is noted that the Secretary of Agriculture will directly monitor the sanction of decreasing plantation class. According to Article 10, paragraph 2, the officer, giving the plantation business licence but not making the sanction to the company which does not implement ISPO, will be reported to the Ministry of Domestic Affair to get warning sanction.

If the warning in one month is not done, according to Article 10, paragraph 3, the Secretary will take over the authority to decide the plantation class grade and the officer giving plantation business licence.

What About the People’s Plantations?According to Article 2 in the

regulation, it notes, the ISPO certification system is done mandatorily. But it is said to give facilitation to get ISPO certification for the people’s plantation.

Rosediana said, the regulation gives the chances to ISPO certification process for plasma and independent plantations by the end of 2020. “After that, it will be mandatorily done,” she said.

Unfortunately, the facilitation of the regulation to get ISPO certification for the independent and plasma farmers is contradict to the Article 8, Regulationof Secretary of Agriculture No. 11 / 2015. In the regulation, it notes, plantation company which runs processing business without having plantation is oblidged to implement ISPO and should get the material from the plantation having ISPO certificates, at least two years after the regulation is officially declared.

It is clear, the article will be boomerang for the independent and plasma farmers having no ISPO certifications. If it is run, automatically, they are forced to get ISPO certification after two years. If they do not get it yet, their material, such as, the fruit will be rejected by palm oil factories having ISPO certificates.

So, the sustainable practices implementation should not be the boomerang and decrease the national palm oil plantation competitiveness and it effects to the farmers. Hopefully.


PROFILE

Ignatius Ery Kurniawan

PARTNERSHIP TO INCREASETHE INDEPENDENT FARMERS’ WELFARE

SURYANTO BUN, CHIEF EXECUTIVE OFFICER SINAR MAS 3

Making the better palm oil farmers is part of the company’s vision which is lead by Suryanto Bun. The calm and smiling

man is the CEO of Sinar Mas plantation in East Kalimantan. He thought, palm oil plantation could grow if working together with the local people and local government.

Palm oil farmers need the good cooperations, starting from the seeding process to the harvesting one. That is why it is important to cooperate with the company. Through the cooperation within the partnership pattern with the company, many helps, such as, seeds, good and sustainable agronomy cultivation, fertilization, nursing, plantation infrastructures until the harvesting process could be done together.

“It will be the key to the success of palm oil plantation by working with the farmers and the regional government,” Suryanto explained. He continued, the

partnership among the company and the farmers could be successful if it starts from the care to the people around the plantation to develop together.

The Supports from Government If the two sides have the same concern

and care, the guidance and the partnership with the independent farmers should run so that the people around really understand the palm oil cultivations. The supports from the regional governmentt and the officers are needed very much to enlarge palm oil plantation in a region.

“The government of East Kutai is very good since 2001. Our company had given superior seeds to independent farmers around the plantation,” the CEO of Sinar Mas plantation said. Through the cooperation with the regional government of East Kutai, at the moment, through Plantation Agency and PT Kresna Duta Agroindo (KDA), we gave palm oil seeds freely to the people (independent farmers) to be planted in their plantation which

IT IS IMPORTANT FOR THE PALM OIL PLANTATIONS TO COOPERATE WITH THE FARMERS AND THE REGIONAL GOVERNMENT. PALM OIL PLANTATION WILL INCREASE THE ECONOMY. NOT ONLY TO THE PLANTATIONS OWNERS, THE PEOPLE IN OTHER PROFESSIONS COULD BE WEALTHIER FROM PALM OIL PLANTATIONS WHERE THEY ARE ENLARGED.

Dok

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28 www.infosawit.com | INFOSAWIT EDISI mAI 2015

29 www.infosawit.com | INFOSAWIT EDITION mAY 2015 29

the economy gets better. The source of economy which derived from cutting the woods now slowly turns, from palm oil fruit.

The high productivities make the harvest increase. The banks in the region start operating their business, such as, Bank Rakyat Indonesia and Bank Pembangunan Daerah. The hotel, shops and markets do too. It is said too, there will be redistricting for the regional income in Wahau is very good.

“Palm oil plantation really contributes to the people’s economy in Wahau. They got bigger income and good economy to develop their region independently,” Suryanto explained.

The Farmers’ Work The farmers partnership with the

company, of course, makes some works to do. On the other hand, the people tend to be pragmatic, or instant, and directly want to get the maximal result on the areas which they have. So the seeds helps given in 2001 for the independent farmers should be planted by implementing the best and sustinable cultivation practice.

“The plantation result in 2001 becomes the example for the people to plant palm oil seeds in their plantation,” Suryanto said. The independent farmers’ work and persistence realize the high productivity in their plantation by planting superior palm oil seeds. “Some of them, after planting their plantation, asked to substitute their plants with the superior seeds,” he emphasized.

What they had planted randomly is now changed by the big concern to get

NAME : Suryanto Bun

BORN : Singkawang, 10 OCtober 1967

POSITION :ChiefExecutiveOfficer

COMPANY : PT. SMART Tbk., Sinar Mas Plantation 3 (East Kalimantan & South Kalimantan) HOBBY : Exploring new region

reaching 4.058 hectares.The supports from regional

government of East Kutai make palm oil plantations belonging to independent farmers grow and develop and have high productivity. “Regional government of East Kutai is very helpful to enlarge and develop the people’s plantations to increase the indipendent farmers’ welfare in the region,” he said and continued,”The role model of the cooperation with the regional cooperation could be the one to

imitated locally and nationally,”In the beginning, the independent

farmers didnot want to plant the superior seeds which had given because they fail to farm when being transmigrants. So they needed counselling from Plantation Agency and the company to increase their awarenesss to plant well.

The awareness grew well in Kombeng, Wahau. It was very good so the economy started increasing. Farmers’ palm oil plantation got high productivities so

CEO SinarMas 3 Plantation, Suryanto Bun (the sixth from right) with Director of Yearly Plants, Ministry of Agriculture, Herdrajat Natawijaya, and the team from Sinar Mas 3 Plantation, East Kalimantan.

Spec

ial


CEO of Sinar Mas Plantation 3, Suryanto Bun (middle) with Sinar Mas 3 team plantations in East Kalimantan.

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the high productivity. “Their hard work and company’s and East Kutai’s helps have succeeded their plantations in Kongbeng and Wahau,” the man wearing glasses said.

In the same time, the company prepares the complete management team, such as, plantation managers, head of agronomy assistant, and some agronomy assistants, head of administration to help the best and sustainable cultivation practices to the farmers. Many councelling, socializations, discussions with the farmers were done to develop the effective and efficient palm oil plantation.

The other supports which are given by the company are the credit fertilizer, herbicide, plantation infrastructures and farmers cooperation. “The partnership pattern is really successfully done, decrease the production costs which the farmers spend up to 30%,” Suryanto explained.

The decreasing production costs derive from the implementation of the fertilizer dose by analysing the leaves. The company does this. The buying of cheaper fertilizer is done in group through the cooperation. The better harvest process is realized because the plantation infrastructures are better too. Paralelly, the better infrastructure in plantation supports the better harvest process.

“We asked the people as the independent farmers to make partnership with the plantation company (ies) to build their plantation,” he said with a smile.

As the result, the farmers palm oilplantation will be better in the cultivation and the harvest process. If the plantation is better, the production will be effective and efficient. Of course, the employees in the company will be spears to improve the independent farmers’ plantations.

The Partnership Among the Farmers and The Company

If the farmers have decreasing production cost, the company as the partner will be very important. Through the partnership with the company, much easiness will be got. The company as the partner will give helps, such as, superior seeds, fertilizers as the dose, the infrastructure in plantation, councelling, guidance, nursing until the harvest process

The partnership programme is completed by the united management together with the company and the farmers. The cultivation runs opensively and transparently. Beside that, the Management of Sinar Mas plantion has developed the partnership pattern in

Financing Innovative Programme in Riau. The company helps them to get banks suppots in finance and the company as the guarantee.

The farmers’ involvement in cultivating their plantation is important to increase the success of sustainable palm oil enlargement. So the partnership among the farmers and the company will increase the productivity. “The partnership will increase the independent farmers’ productivity more than 30 tons per hectare per year,” he said.

Suryanto thought, the farmers should get the better productivity. If the farmers get better production, the regional government and the company will be better too. The regional government is successful to welfare the people, the company will run the business, supported by the farmers or people and the regional government. The farmers get wealthier supported by the company and the regional government.

“The partnership pattern through one management service will support the success of independent farmers palm oil plantations together with the company and the regional government. There will be best and most efficient productivity,” Suryanto excitedly said.

30 www.infosawit.com | INFOSAWIT EDISI mEI 2015


TBS, CPO, CPKO, RBD OLEIN, STEARIN & OTHERS

Indo

nesi

an P

alm

Oil

Frui

t Ref

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tial P

rice

(Pe

riod

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rage

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entia

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e (Rp

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1.541

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1.576

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6.878

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80

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48,99

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PRICE INFO



AGENDA &FLASH NEWS

Mendag: Nine Benefits of B15

L/C Scheme Does Not Influence the Industries

JAKARTA –Secretary of Trade, Indonesian Republic, Rahmat Gobel mentioned, there are nine benefits to get if the mandatory of the increasing biodiesel mixture 15% (B15) from B10. The first, he said, to increase the exchange but decrease the dependence on fossil fuel. B15 could save the exchange up to US$ 2,54 billions (Rp 31,71 billions) while B10 saved the exchange about US$ 1,63 billions (Rp 20,4 billions). The second, B15 will increase the added value to palm oil downstream industries or crude palm oil, about Rp 10,9 billions. “The third, by B15, the world CPO price could increase about USD 309 /ton; if B10 just increased USD 146,62 /ton,” he recently said in Jakarta.

The fourth, Gombel continued, B15 could increase the state income, including the tax or out fee, about Rp 30 billions than the income in B10 which reaching Rp 15,19 billions. The fifth, to develop the vegetable fuel industries in the domestic, to increase the employment and increase the tax result.

The sixth, B15 will hire about 671.250 employees in the field and 5.065 employees in non field. B10 hired 375.000 employees in the field and non field about2.840 men.

Beside that, B15 could increase the palm oil income, about 32,2% and the B10 increased 15,3%. “The eight, to increase green house gas effect and to increase the environmental quality about 7,9 millions tons of CO2 for B15 and B10 increased 5,1 millions tons of CO2. And the nineth, to increase the national energy security,” he explained. q T3

JAKARTA – Some palm oil exporters do not have problem with the government’s policy which oblidges the payment of Letter of Credit (L/C) for certain export goods, such as, oil and gas, coal, and crude palm oil (CPO). But some others thought, the policy which effective runs since in the beginning of April, will burden the CPO export fee.

But Managing Director of PT Tri Putra Agro Persada, Sutedjo Halim said, the L/C payment will not influence to the works of the industries. But it is considerable if there are some objections, because Halim continued, the CPO exporters were used to hve Cash Against Document or Advanced Payment in paying their CPO exports process.

But the government should give the postponement to implement the CPO scheme within L/C, to give them time to adapt. “It is no problem for us to use L/C,” he recently said in Jakarta. q T3

Oleofuels 2015Venue : Active Communications

International (ACI), UKNet – Link : [email protected]

10-11 June 2015

14th International Rapeseed ConferenceVenue : Saskatoon, Saskatchewan, CanadaNet – Link : http://www.event-wizard. com/

05-09 July 2015

Malaysia-Philipines Palm Oil Trade Fair& Seminar (POTS) 2015Venue : Manila, PhilipinaNet – Link : http://www.mpoc.org.my/

6-7 August 2015

Food Ingredients Istanbul 2015Venue : Istanbul, TurkeyNet – Link : http://www. foodingredientsglobal.com/

13-15 May 2015

6th AEBIOM European BioenergyConference 2015Venue : Istanbul, TurkeyNet – Link : http://www.

foodingredientsglobal.com/

4-6 May 2015

106th AOCS Annual Meeting & ExpoVenue : Brussels, BelgiumNet - Link : http:// www.aebiom.org/ conference/

3-6 May 2015

4 May-6 June 2015The 9th China (Guangzhou) International Edible Oil and Olive Oil Exhibition 2015Venue : Guangzhou, ChinaEmail : http:// www.

chinaexhibition.com

1st Sustainable Oils and Fats International Congress Venue : Paris, FranceNet – Link : http://www.fat-associes. com/

16-17 June 2015

Biogas Could Conserve the EnvironmentJAKARTA - Biogas from palm oil waste seems to be lack of the government’s

attention. This waste could be advantaged to be national electricity energy. Beside that, advantaging the waste is one efforts to reduce the environmental damage.

Chairman of Indonesian Palm Oil Board, Derom Bangun explained, palm oil waste was mud and it was let or thrown to the river. But the waste actually could be collected and process through the waste pools.

Bioenergy Development is StuckedJAKARTA - State Chairman of New and Renewable Energy Committee, Indonesian

Chambers and Industry, Harry Salman F Sobar said, there are lots of problems to develop bioenergy as the new renewable energy.

He thought, the problems are not about the regulations relating to the infrastructures only but also about the difficulty to get funds from the banks. In addition, the dollar keeps raising. “The banks should actually help the businessmen because the renewable energy is mostly in the regions,” he recently said in Jakarta.

Harry continued, the businessmen need the tax facilitation and other incentives to develop bioenergy because the result will be given to the people’s interests. q T3

Support Sustainable Palm Oil CertificationJAKARTA –The subindustry of Cargill Tropical Palm Holdings Pte Ltd. (CTP),

PT Hindoli has fully supported the certification boards to realize sustainable palm oil, both in Indonesian Sustainable Palm Oil (ISPO) and Roundtable on Sustainable Palm Oil (RSPO) schemes.

Chief Farmer Development Operations Manager, PT Hindoli, Joko Wahyu Priadi said, his side has no problem about many models in palm oil certification. PT Hindoli itself is one company which commits to implement sustainable palm oil practices.

Joko continued, besides the main plantations, his side also supports the farmers, both plasma and independent ones to implement sustainable scheme. It is proved that the two kinds of farmers’ plantations get RSPO certifications.

It happens too in ISPO certification. His side supports it very much. But it needs to consider the benefits from what is done. Implementing ISPO is to prove that national palm oil is not environmental damage. “Proud of getting ISPO is not enough. The most important thing is that the world admits it or not,” he said. q T3

NIGERIA – One African palm oil producer, Nigeria, is known to produce crude palm oil (CPO) about 930 thousands tons per year. The consumption in Nigeria has been reaching 1,43 millions ton per year. It is normal that in every year, Nigeria should import CPO about 525 thousands of tons as quoted from B&FT.

KUALA LUMPUR – In next two years, Malaysia is predicted to be biggest producer of graphene in Asia. It is known from the building of graphene factory, done by Felda Global Ventures Holdings, Bhd (FGV). Vice Director of Downstream Sector, FGV, Datuk Zakaria Arshad said, the RM 15 million factory is estimated to have nine kilograms of graphene per day in capacity. Though the location cannot be identified specifically, but it is hoped to be in one factory belonging to FGV.As quoted from Bernama recently, the graphene material downstream product will be used to develop the products in the some industries, such as, aerospace, telecommunication, rubber, palm oil, electronic, oil, gas, and and sun power.

NIGERIA – The government of Nigeria is predicted to get a chance to increase their economy about US$ 20 millions per year after the country agreed to make adjustable tax about 25% from the palm oil imports.Head of Sales and Marketing of the Ghana Oil Palm Development Company Limited (GOPDC), Gangadhar Shetty said, the income will be done out of the citation 10% from the Common External Tariff (CET) on the crude palm oil (CPO) import. As quoted from B & FT, this is done to protect palm oil industries. Having the tax, Shetty continued, the palm oil plantation enlargement should not be blocked.

PETALING JAYA -Vice Chairman of Boustead Plantation Bhd, Tan Sri LodinKamaruddin said, his side is trying to expand the landbank ownership, about 20% in the next two or three years. The landbanks of Boustead Plantation Bhd reach 83,4 thousands hectares. Though it could be done in Philippine, and Papua New Guinea, but because of the security reason, the location in Malaysia is the main option to expand.

IN BRIEF

But for it was not seen, the waste produce methane gas. The methane gas function to be biogass. “Years before, it was thrown away for the awareness to the environment is not just like nowadays. If gas methane is released to the air, it will damage the ozone and make global warming,” he recently said in Jakarta.

But, Derom continued, there has been company capturing the methane gas which uses plastic blanket and turns it to be electricity, such as in Riau province and it produces 2 Megawatt of electricity.

So processing palm oil waste to be biogass will give two benefits. “The first is to conserve the environment, and the second, it can be the power plants,” he said. q T3


PALM OIL CHEMICAL RECONSTRUCTIONFOR SPECIFICNEEDSFOR THE POSITION OF FATTY ACID IN ITS COMPOSITION IN PALM OIL IS CHANGEABLE, THIS MAKES PALM OIL BE SUBSTITUTIONAL MATERIAL FOR INDUSTRIAL NEEDS.

BPPT INFO

Oil or fat is the triangle compound which is arrannged from the glycerol and 3 (three) fatty acid which possibly

consist of several different kinds of fatty acids. The arrangement and kinds of fatty acid in tryglyceril determine the physical and chemical characteristics which are about to form.

The arrangement of fatty acid in the tryglyceride could be substituted, both in chemical and in enzymatic so it has more characteristics in physical, chemical, or in nutrition.

The change in the tryglyceride arrangement could happen in Sn1, Sn2 or Sn3. This could be seen in the tryglyceride structure below.

The lipace (Glycerol hydrolysis ester) consists of a group of enzym in all gens of the animals and plantation. Their biological

function is to be the catalysator in the hydrolysis tryglyceride process to make free fatty acid, di-acyl-glycerol, mono-acyl-glycerol dan gliserol.

The reaction in lipase is reversible so the enzym functions as the catalyst in making acyl – glycerol from the glycerol and free fatty acid. Though lipase has been studied for years and could be produced in big scale, but so far, it is still limited in the industries. It is different from the hydrolyic enzym, protease and carbohydrase which are used globally in the industries.

But there has been increasing wish to develop the new application for the enzym in the products and the process, namely in the detergent, fatty oil and milk industries.

Lipase within region-specific 1,3, basically, could be used to produce mono-acyl-glycerol from oil and fat. But this type of lipase in the catalyst enzymatic reaction

could substitute the glycerolysis chemical process which is now used to produce mono-acyl-glycerol. The fatty acid specific region lipase from the primer esther compound is in the position 1 and 3 in acyl-glycerol.

The lipase could hydolyze tri-acyl-glycerol to produce free fatty acid 1,2 (or 2,3) di-acyl-glyceroland mono-acyl-glycerol. In table 1, it shows the example of specific region lipase and the source which is used in the synthesis tri-acyl-glyceroland in the lipase selective ability to the different fatty acid chain length.

The advantage of specific lipase enzym is needed so much to synthesis or modify the triglyceride arrangement in the specialty fats products. This can be seen in the main structure in specialty fats products which in the synthesis, it needs the works from the specific enzym.

Wiwik Handayani, ST, MT


Cocoa Butter Equivalent (CBE)Cocoa Butter Equivalent (CBE) is the

fat deriving from the plantation which has non-lauric fat and which has the same characteristic with cocoa fat. This fat could be mixed into the cocoa fat without changing the characteristic of cocoa fat. In CBE the main fatty acid compositions are palmitic acid, stearic acid, oleic acid dan linoleic arachidic acidwith the triglyceride structures, such as POP, POS and SOS

Cocoa Butter Replacer (CBR)Cocoa Butter Replacer consists of non

lauric fat which the distribution of the fatty acid is almost alike cocoa butter. But it has different triglyceride structure with cocoa butter. The mixture with cocoa butter could be done in small numbers. The main fatty acid compositions in CBR are elaedic acid, stearic acid, palmitic acid dan linoleic acidwith the triglyceride structures, such as, PEE and SEE.

Cocoa Butter Substitute (CBS)This fat consists of louric acid which is

chemically different from cocoa butter. It is usally used to substitute the cocoa butter up to 100%. In CBS, the main fatty acid compositions are lauric acid and myristic acid with the triglycerid structures, such as, LLL, LLM and LMM.

Sn1

Sn2

Sn3Table 1. The example of Triglyceride Arrangement

Lipase Region spesifik Specific Fatty Acid Chain Length

Rhizopus delemar 1,3>>2 M,L>>SRhizomucor miehei 1,3>>2 S>M,LPorcine pancreas 1,3 S>M,LHumicola lanuginosa 1,3>>2 S,M,LPseudomonas sp. 1,3>2 S,M,LCandida rugosa Non-selektif Non-selektifPenicillium cambertii 2 Non-selektifCandida antarctica 2 M,L>S

Table 1. Specific Region Lipase and the Source

Oil from the nature Fat from Modification Result

BPPT Research Result

Milk Fat Substitutes (MFS)It is the milk which has the same fatty

acid distribution like the distribution of fatty acid position in the milk. In the milk fat, the fatty acid distribution has the certain fatty acid arrangement which is very specific by advantaging the nutrition function.

Other Specialty FatsHaving the ability to reconstruct the

fatty acid arrangement or kinds of fatty acid in the triglyceride arrangement, fatty oil could be made which has chemical – physical characteristics both to be advantaged in the usage and the nutrition.


HERSHEY – Hershey Company, April 2015 reported to use their material from sustainable palm oil which has been supported by the strategical cooperation with The Forest Trust. It is noted, Harshey has used 94% of sustainable palm oil from all factories using palm oil globally. Harshey is said to map the chain stock up to the plantations which the target will be finished in 2016.

KOTA KINABALU – Secretary of Science, Technology and Innovation, Malaysia, Datuk Ewon Ebin said, one of three projects advantaging palm oil or biofinery in Sabah and Serawak has been approved by Bioeconomy Transformation Programme (BTP) committee. Genting Plantation Berhad will collaborate with Elevance Renewable Sciences, a United

States of America company to build biorefinery. Bernama wrote, the two projects locating in Sabah and Serawak run Bio – Compressed Natural Gas technology from palm oil waste and converse it to be bio-organic.

OXFORD - Proforest supports Tropical Forest Allicance (TFA) as the partners in Palm Oil Signature Initiative. TFA 2020 is the global partnership which unites the consumers and the other main partners, including the government and NGO. It is aimed to stop deforestation relating to soybean, cow meat, pulp and paper and palm oil procurements. TFA 2020 has recently launched the initiative of the first signature – African Palm Oil Initiative. It starts from six countries as the partner, they are, Gabon, Ghana,

Cameroon, Liberia, Nigeria and Coast de Ivory. Its goals is to seperate deforestation from palm oil stocks in West and Central Africa.

GHANA - Secretary of Trade and Industry, Ghana, Ekwow Spio-Garbrah has claimed to make Palm Oil Development Board to monitor the policies, regulations, and the other possible industrial regulations. According to Food and Agriculture Organization, the world palm oil production is about to increase, from 45 millions tons to be 60 millions tons in 2020. The African palm oil plantations which are about 30% of the total palm oil areas in the world could produce less than 10% from the total CPO production in the world.

IN BRIEF


IT IS ALMOST A DECADE THAT PALM OIL POLITECHNIC CITRA WIDYA EDUKASI (POP – CWE) IS IN NATIONAL EDUCATION WORLD. THE CAMPUS WHICH FOCUSES TO DEVELOP HUMAN RESOURCES IN PALM OIL TARGETS TO BE THE BEST POLYTEHNIC IN NATIONAL PALM OIL SECTOR IN 2017.

Azhar B Rantawi.

PALM OIL POLYTECHNIC CITRA WIDYA EDUKASI (POP-CWE)TARGET IN 2017, THE BEST IN NATIONAL PALM OIL LEVEL

More less nine years that POP CWE has been existing. It is noted, six generations had been graduated for it is almost a decade educating

the students in palm oil industry. It is normal that the alumni of POP CWE are widely spreaded from Sumatera, Java,

Kalimantan, Sulawesi, Papua and even Malaysia.

The spread of the graduated students of POP CWE in all centers of palm oil plantation in this country, even up to Malaysia proves that the graduated have competence which the palm oil industries need.

The waiting list time for the graduated from POP CWE is short. This shows, palm oil industries need competent human resources in palm oil.

So to create the competent human resource in palm oil, POP CWE always tries to increase the quality of the graduated. It is as same as the vision and

CWE INFO


mission which POP CWE has had, that is, “Be the Superior Politechnic in palm oil sectors in national level in 2017”.

To succeed the vision, POP CWE has the strong missions, such as, making the vocation education which make superior characteristic graduations, global vision, and could compete, especially in palm oil in the national level

Then, making of the research application of research and training which are oriented to the needs of the industries, especially in palm oil and be the professional service to the people, develop the leadership, management which fulfill the educational standard quality in the national level.

The increasing quality, as a matter of fact, is not laid on the study only, but also the other aspects, such as, research, service to the people and management. So what becomes the visions of POP CWE could

be realized.On April 6 -7th, 2015, the National

Higher Education Acreditation Board (NHEAB) had done visitation (appraisal) to the campus of Palm Oil Politechnic Citra Widya Edukasi, locating in Bekasi, West Java. This was done to verfy the full documents of portofolio of POP CWE.

The assessors of NHEAB which was represented by Prof. DR. Ir. Nadjadji Anwar from Faculty of Civil Engineer, Institute Technology of Surabaya and Prof. DR. Ir. Ali Ibrahim from Faculty of Agriculture from University of Lampung did visitation based on the documents which had been sent before.

The result of the visitation will determine the grade/acreditation of Palm Oil Politechnic Citra Widya Edukasi. Besides making the appraisal, The NHEAB team gave some suggestions to the management to increase the quality

according to the visions and missions which POP CWE has had.

The institution acreditation is to know the management from the related institutions. In the opportunity, the government which was represented by NHEAB thought/ensured the sustainability of the higer education which is about to be acredited.

Director of Palm Oil Politechnic Citra Widya Edukasi, Nugroho Kristono said, the visions and missions which POP CWE has had will be realized if every side could cooperate each other, both in internal and external side. For exampe, relating to the Tri Darma of Higher Education, namely in the research, the result of the researches are hoped to accomplish all the available problems in the field, especially in palm oil industries. So that the cooperation for both sides could be more profitable.

Assesors did visit to practice workshop of CWE palm oil plantation

Assesors did visit to practice plantation of CWE palm oil plantation Assesors did visit to the class and laboratory of CWE palm oil plantation


FARMERS INFO

IT IS USUAL THAT IF THE PEOPLE WANT TO PROPOSE A COOPERATION WITHT THE PALM OIL COMPANY, THEY ARE USUALLY ASKED TO MAKE AN INSTITUTION, SUCH AS, COOPERATION IN THE FIRST PLACE, BESIDE THE OTHER REQUIIREMENTS. THE QUESTION IS, WHAT IS THE COOPERATION ACTUALLY?

Atep Yulianto I

WHY SHOULD MAKECOOPERATION?Just like what has done, the

people in making partnership with palm oil company (ies), it should make an institution, such as, cooperation, within at least

consists of 20 men. Of course, this is done for some reasons.

Just like a palm oil farmers from Village of Dawas, Subdistrict of Keluang, Musi Banyuasin, Rianto told. After enlarging palm oil plantation in 2005, he and the other farmers agreed to be a group and made a cooperation.

In fact, it is proven to be benefit when they were asked to make partnership with palm oil company in the region. It runs well until now.

Rianto, of course, found some problems when making the cooperation with independent farmers.

But if Rianto did not make the cooperation, what would happen?

How far is the cooperation playing its role to realize the partnership among the farmers and the palm oil company (ies)?

Vice Director of PT Sasaran Ehsan

Mekarsari, Arie Malangyudo shared his experiences in his blog.

He said, cooperation is a business institution which is regulated in the Regulation No. 25 / 1992 about Cooperation. It is formed by some men, at least 20 men. This kind of cooperation, Arie noted, is Primer Cooperation.

In fact, the cooperation could be formed by joining some cooperations, with the minimum numbers are three cooperations. It is called secunder cooperation which is made by the Document of Incorporation which consists of Article of Association in Statute after the government officially announce it.

In the cooperation, the Members Meeting could give the coordinators authority to the coordinators. The cooperation is the economical, social democracy belonging to every member, the coordinators or the managers.

Cooperation usually has some groups of men, the divident is divided accoding to the limited service comparison. Its goal

is to enlighten the economical burdens of the members, improve the welfare of the members in specific and the society in general.

The numbers of the state modal is not a must, it can change according to the safe of the members. Cooperation does not focus to the income of the modal/business but the members themselves by prioritizing the principle of togetherness. In the members meeting, every single member has one vote without paying attention to their modals.

The membership is free. Every one can be in or out as the member, according to the agreement with the coordinator so that the cooperation does not know the permanent modal. Just like what happens in the company, cooperation is a legal entity.

In general, running the cooperation is done by the coordinators for it is not a group of men having goal to get the profits in large numbers. So every member is oblidged to work together to reach the goal, that is, the welfare of every member.


Both benefits or loss, the member should togetherly burden it. If the cooperation gets loss, the members have the same loss too. The member who is not capable, he is free from the loss. The loss is burdened by them who are capable.

It is normal if something happens in a cooperation in District of Pelalawan, Riau Province, such as, a loss, and the cooperation is sued to be closed, it happened for the cooperation is mismanaged.

In order not to be like that, in making some activities, the cooperation could make relationship with other legal institution, for example, private company (ies) or state company (ies). The structures of the cooperation consist of Members Meeting, Coordinators and Inspectors.

Members MeetingIn a cooperation, it is known a

members meeting which the highest authority is in the management of the coopetation. But if it is needed, Advisory Board could be made.

The members meeting is done to make the Articles of Association, determine the general policy in the organization, management, business and run the decision of the cooperation.

It is also done to vote, take, stop the coordinators and inspectors. In the members meeting, it is also done to make the plans of work, budget income buying, announce trade balance,calculate the profits and the losses and the policy which the coordinator will run. It is also done to officially legalize the responsibility reports of the coordinators, the inspectors in running their duties.

In members meeting, it is also done to share the rests of business fund, joining, share or dismiss the cooperation. It is usually done once a month.

Coordinators of CooperationAfter making members meeting,

determining the goal of the cooperation, choosing the coordinators, then what does the cooperation do? Arie said, the coordinators could be the representative in or out the court.

Cooperation could decide the acceptance and rejection of new member, stop the member according to the article of association. The coordinators could do something for the benefits of the cooperation according to the responsibility and the decision in the members meeting.

The coordinators in the cooperation consist of Chairman, Secretary, and Treasurer. They have their own duties and

responsibilities.Beside the coordinatos, the Inspectors

should check the management of the cooperation, including the organization, inspect the pattern of the management, business, finance, modals, and others.

They should monitor and research the rightness of the organization, business, financial notes to be compared to the real facts.

Besides inspecting, the Inspector is also responsible on the checking and rechecking up of the result of the inspection and puts the results in secret to the third side. The inspector should make report, give opinion and advice in the written reports whih wil be reported in the yearly members meeting.

The inspector, in the cooperation organization, points a manager to lead and coordinate the business, and financial plans for every division in it. This is useful to arrange the work plans and propose them to the coordinators.

It is clear that the direction of the management and the administration of the people with the company in making partnership, will be represented by the cooperation. So that the cooperation has important roles to determine the partnership with the (palm oil) company (ies).


FARMERS INFO

MAKING COOPERATION FOR PARTNERSHIPAFTER BEING AGREED TO BE GROUP, THE PALM OIL FARMERS WHO WANT TO MAKE PARTNERSHIP WITH PALM OIL COMPANY SHOULD MAKE COOPERATION. THEN HOW TO MAKE COOPERATION TO BE IN PARTNERSHIP?

Atep Yulianto I

Relating main – plasma partnership or independent partnership which is now developed, the cooperation is the important institution to

succeed the partnership process. So making the cooperation could be

ramdomly done. There should be plans, well managed. In addition, making cooperation should refer to Regulation 1945, Article 33 paragraph 1 and the explanation, Regulation No. 79 / 1958, Regulation No 14 / 1965, and Regulation No 12 / 1967 and the specific cooperation regulations, they are, Article of Association, Bylaw, the decision of members meeting and the coordinators meeting.

So, before making cooperation, some requirements should be fulfilled, such as, the membership shoul be minimally 20 men, should have article of incorporation which notes of the articles of association, bylaws which the founders make them.

In the articles of association, it consists of the date to make the cooperation or at least, it makes the name of the founder, name of the location, goals, business of the cooperation and the regulations to the members.

Then, it makes about the regulations in members meeting, the management, modals, range time, divident and sanctions. If there are fulfilled by the

name of law, the cooperation will be officially noted in the general book of the State News and it is announced.

The Phases in Making CooperationBefore making the cooperation,

according to Arie’s notes, it is started by the group of some people within the same interests. If the goal is to be in partnership with palm oil plantation company, the collected men could make the cooperation from all farmers having palm oil plantations. The candidtate of the member should be in the same region.

In preparing the cooperation, it is started by the idea to make the cooperation and have the strong will and could be realized in making the committee, asking the government’s officers and head of cooperation in the region.

The meeting in making cooperation will discuss about the main reasons to make it, the goals, the agreement, the formulation of articles of association, bylaw, the choice of the coordinators, inspectors, and the men who will sign the articles of incorporation.

If they are agreed, the making meeting is over. The choosen ones are oblidged to make the member list book, make the coordinators book, make the report about the making of the cooperation and

send it to the authority and send a Law Document of Petition to the directorate of cooperation in the region

Cooperation For PartnershipKind of cooperation which becomes

the institution for farmers to make partnership is the Producer Cooperation (consists of the men doing production activities). In the relation to enlarge the people’s main plantation, especially in the investment distribution, the farmers could give the authority to the farmers cooperation to support the farmers’ plantations as the members.

Referring to the General Handbook in the Plantation Replanting Programme in 2007, the requirements to the cooperation as the authority institution for the farmers as the members are the Primer Cooperation should have law entity (the incorporation and the change) and not as the Employees Cooperation.

The cooperation should not be in Black List and in Stuck Loan List in Bank of Indonesia. The cooperation should have not credit arrears, has made the Cooperation Agreement with the partner, should have account in the Certain bank as the executor.

Is Villager Cooperation could be the partnership cooperation? Arie noted, the villagers cooperation could actually make cooperation with plantation company. But


it needs to make secunder cooperation. Making secunder cooperation should consist at least 3 (three) villagers cooperations in the same time and in the same region.

The secunder cooperation will be the representative of the villager cooperation

for the outer business of the villager cooperation in making relation with the main side and the third side in the procurement of the production facilities, harvest tools, members training, other services which the villagers cooperation needs, so it could be more efficient and

Farmers Organization Structure in People’s Main

Plantation

Duties and Activities by implementing the Solidarity Principles and the Togetherness Principles

The members of the farmers group consist of 5 – 20 farmers

30 – 40 hectares of palm oil plantations

- The members choose the coordinators of the group.- Choose the representative / spokeman in Villagers Cooperation- Manage the Plasma Unit together.- Same divident from the fruit selling to all members.

Members of Villagers CooperationConsist of 20 Farmers Groups

600 - 800 hectares of palm oil plantations

- Organize the fruit transportation to the factory.- Distribute the production facilities.- Coordinate the social and commercial relation.- Book the production result and the fruit selling.- Choose the representative to be the coordinator in the Secunder Cooperation.

Members of Secunder Coperation consist of

5 villagers cooperations (at least 3 villlagers cooperations)4.000 hectares of palm oil plantations

- Represent the Villagers Cooperation in the partnership with the Main and the third side.- Provide the production infrastructure- Hire the transportation truck.- Deal with the business licence.- Represent the credit income.- Do training for the members.

Source: Arieyoedo’s Blog

Farmers organizations in Partnership

organized well.The secunder coopertion will

coordinate the villagers cooperation activities but it will not interfere the plasma plantation activities. The secunder cooperation could represent the acceptance of the fruit selling result from the Main, if it is regulated by the villagers cooperation which manages it. The secunder cooperation should be together and transparent to make the rules with the villagers cooperations which are managed.

Then, how to make partnership among the Main and the secunder cooperation? Arie wrote, the partnership among the Main plantation and the secunder cooperation is the cooperation in running the activities should be partnership with the company.

Then all members of the secunder cooperation is the villagers cooperations having members who have plantations and joining the People’s Main Plantations. All villagers cooperations as the members of the secunder cooperation should have the authority to sign the agreement, for and on behalf of the members.

The partnership among the Main palntation and the Secunder Cooperation should be adjusted with the phase in enlarging plasma plantation. The partnerhsip should be made in the document of partnership which writes the rights and sanctions, based on the same decision.

Then the other partnership regulations should be known by the local regent. “The management in making partnership should be clear and opensive,” Arie noted.


RSPO Team

SUSTAINABLE CULTIVATIONS OFFER MANY BENEFITS TO WHOM DOING IT.IT IS IMPORTANT FOR THE FARMERS TO PARTICIPATE AND ENSURE THE BENEFITS AND SUPPORT THE SUSTAINABLE PALM OIL MARKET TRANSFORMATION. INDONESIA NOW HAS MORE THAN 1,6 MILLIONS FARMERS CULTIVATING 3,6 MILLIONS HECTARES PALM OIL PLANTATIONS. BUT THEY HAVE MANY PROBLEMS WHICH BASICALLY AROUND THE LIMITED ACCESS.

The challanges which the independent farmers face cover : the implementation of best agricultural practices, knowledge, experience in

managing the organization, and the access to market their havest to the larger markets. As the result, the production and the marketing could not run maximally

and best agricultural practices could not either as the phases to realize sustainable practices

On the other hand, Indonesia could be proud of the achievement of the independent farmers’ sustainable practices implementations. Among the bigger challenges in last several years, there have been independent

farmers groups which are the pioneers to cultivate sustainable palm oil in this country.

The Independent Palm Oil Farmers Association, AMANAH, Farmers Group Tanjung Sehati and Plantation Cooperation Tani Maju make their histories as the “First Movers” in the independent palm oil farmers’

SUSTAINABILITY INFO

Indonesian Palm Oil Farmers Group Getting certification groups from RSPOIndipendent Palm Oil Farmers Association AMANAHLocating in District of Pelalawan, Riau Province, Indonesia, their palm oil plantations reach 767,56 hectares within 349 families. The group has developed the internal control system to ensure, RSPO P&C could run well.

Farmers Group Tanjung SehatiLocating in Village of Mekar Jaya, Merangin, Jambi, The organization was made in 2009 and listed to the regional government. Tanjung Sehati is an organization which was made by the independent farmers and now has 350 members cultivating 450 hectares of palm oil plantations.

Plantation Cooperation Tani MajuHaving members from the independent farmers in South Sumatera, the Cooperation has positive effect to the farmers and their families. They do not damage the environment because they implement the best agricultural practices.

SUSTAINABLE PALM OIL MARKET TRANS- FORMATIONWITH INDEPENDENT FARMERS


journeys in Indonesia which have 609 members and have certified area reaching 1.180 hectares. They are three from nine independent groups in the world, successful to get Roundtable on Sustainable Palm Oil (RSPO) certifications until now.

RSPO Smallholder Support Fund Helps The Farmers To Sustainable Cultivations

In implementing the best management practices and increasing the sustainable production, the farmers are stucked to get the access in financial helps. As same as the RSPO commitments to help palm oil farmers, RSPO put the special funds aside as the initiative in RSPO Smallholder Support Funds (RSSF). RSSF provides the fund supports to the farmers who want to practice the sustainable production and to get RSPO certifications.

The goal of RSSF is to help the farmers in the sustainable practices by obeying the Principles and Criteria (P&C) in RSPO, which in the end, it will increase the sustainable palm oil production. Besides giving help to the audit funds in RSPO certification, RSSF also can be implemented to increase the farmers’ knowledge capacity and

their skills, the high conservation values, the study to the social and environmental effects, the development of internal control, the training to the best agricultural practices, the

increasing market access and others.

The proposal to get RSSF could be proposed by the

managers of the farmers group or supportive organizations which cooperate with the farmers by aiming to get RSPO

certificationsfor the farmers. In the proposal, it needs to explain the goal, effects, the sustainable implemented practices, and key performance index which have the important role to maintain the work and to evaluate the success of the projects.

The structures and the mechanism in RSSF have been approved by the Governor Boards of RSPO on October 12th, 2012. The source fund in RSSF derives from 10% of the income which

RSPO gets from the Certified Sustainable Palm Oil trades will be allocated to support farmers. 50% of the funds deriving from the surplus of the income in RSPO finance will be allocated too to facilitate the fund.

RSSF could be proposed as the budget in the first year, and it could be prolonged if the achievement of the programme could fulfill the criteria. The agreement of RSSF fund will be decided by Smallholder Fund Panel (SFP) by considering the nowadays proposal and the fund availability. Until January 2015, RSPO had got 11 RSSF proposals – 4 from Indonesia, 2 from Malaysia, 3 from Thailand,1 from Ghana, and 1 from Nigeria. In 2014, Independent Palm Oil Farmers Association AMANAH had the RSSF facilitation fund to the audit surveilance in RSPO certification.

Form Aplikasitersedia di Website RSPO (http://www.rspo.org/certification/smallholders/support-fund).

Data as of April 2015

No Farmers Groups Certification Unit Coutry Year of Certification

The areas of Certification

of the Farmers Groups

(Hectares) 1 UPOIC Nuakhlong-Khaopanom Thailand 2012 1,4782 The Sustainable Oil Palm

Smallholders Production (Univanich-Plaipraya) Community

Thailand 2012 645

3 Community Enterprise Group – Suratthani

Thailand 2012 187

4 Wild Asia Group Scheme (WAGS - MPOB SPOC Beluran)

Malaysia 2013 253

5 AMANAH Independent Farmers Association

Indonesia 2013 746

6 TanjungSehati Farmers Group Association

Indonesia 2014 346

7 TaniMaju Cooperation Indonesia 2014 888 Wild Asia Group Scheme

(WAGS - Sabah, Kinabatangan)Malaysia 2015 181

9 Wild Asia Group Scheme (WAGS), Air Kuning Group

Malaysia 2015 133

The independent farmers in the world Getting certification from RSPO:


COMMODITY TREND

Atep Yulianto I

SUPPORTS BIODIESEL INDUSTRIES?CPO SUPPORT FUND (CSF)

Without knowing holidays and fatique, the palm oil coordination meeting was held with national palm oil industrial businessmen.

After some coordination, since the beginning of April 2015, on Monday (6/4) it was agreed to make crude palm oil (CPO) Supporting Fund (CSF). It is rumored, the policy is wrapped by President’s Regulation.

It regulates that every CPO export will have citation fee about US$ 50/ton and US$ 30/ton for the CPO derivative products. In the policy which the national palm oil industrial players attended, such as, Wilmar Group, Surya Dumai Group, Sinar mas, PT Tri Putra Agro Persada Tbk, Musim Mas Group, it is agreed that the policy will be the support to the national

palm oil industries.Coordinator Secretary of Economy,

Sofyan Jali said, the collected funds through CSF will be used to support the mixture of 15% biodiesel to diesel policy, help the replanting programme to the people’s plantations and the research programmes.

But, is it true that the CSF citation policy is to develop national palm oil industries, especially the biodiesel ones? It was rumored that the collected CSF fund will be the subsitute to the vegetable fuel subsidy which was budgeted about Rp 7 billions (4000/liter).

Though it does not relate to the CSF funds, Daily Chairman of Indonesian Biofuel Producers Association, Paulus Tjakarwan thought, the emerge of CSF could not directly be related to support

and develop national biodiesel industries.Though it is admitted, to develop

biodiesel industries, the government needs lots of fund. But the government should get the fund for subsidy from many sources. The sources could be from the oil subsidy which has been allocated in the Budget Plan 2015 which reaching Rp 291,1 billions or by increasing the industrial taxes.

Paulus felt sorry, the emerge of CSF policy seems to develop national biodiesel industries but it depends on the help from the industrial businessmen.

To support the high absorption of new and renewable energy is the government’s responsibility. But Paulus does not blame the government by making the CSF policy. “We have to make it right, developing national biodiesel industries

IT TOOK A VERY SHORT TIME TO MAKE CPO SUPPORTING FUND (CSF) THROUHG THE COORDINATOR MINISTRY OF ECONOMY. BUT THE QUESTION REMAINS, WILL THE POLICY SUPPORT NATIONAL BIODIESEL INDUSTRIAL PROGRESS?


export referential price (ERP) of CPO and added with US$ 188/ton. But after it was corrected, to be MIP of biodiesel, the ERP of CPO was added by US$ 125.

Paulus thought, if the MIP of biodiesel was implemented, the biodiesel company (ies) having no palm oil plantations will be broken down, “There will lots of the companies be broken down,” he said.

It is clear that the government is weak to commit to develop national biodiesel industries. It is proven, by April 2015, the implementation of 15% of biodiesel is vague still. The new contract with Pertamina is not done yet.

The emerge of CSF fund which is said to be implemented in April 2015 still raises questions because the reason to make the CSF is one support to the national biodiesel subsidy which the government and the legislators are not agreed yet, about Rp 4000/liter.

Is that true, the CSF fund which has been collected will be used to substitute the subsidy fund which has been made? There will be lots of collected fund for it will reach Rp 14 billions.

It is clear, the collected fund is suspected to emerge the CSF fund as the government’s effort to get new source of income. Moreover, in last three months, the out fee as the source of income for the

is not only by making CSF policy,” he recently said.

Now it is questioned, will the government be straight to implement the biodiesel mandatory? Since 2008 up to 2014, the target to absorb biodiesel could not be reachable. It was 30 – 40 % from the target.

The last but not the least, General Directorate of New and Renewale Energy and Energy Conversion, Ministry of Energy and Minieral Resources reported, the vegetable fuel absorption in the first quarter of 2015 just reached 225.074 kiloliters (KL)or decreased 35,6%. It was lower than the absorption in 2014 which reaching 350 thousands KL in the same period. In the other words, it reached 7,5% from the target which reaching 3 millions KL in 2015.

There should be solution to the mistarget of national biodiesel absorption in the public sector which is known as the Public Service Obligation (PSO) scheme. The final price is not agreed yet. So the absorption of national biodiesel should be increased in the industrial sectors.

The Problem is The PriceThe problem in developing national

biodiesel industries is still in determining the market index price (MIP) to buy biodiesel. Before the MIP, it was the

government still reaches 0%. This is the effect from the decreasing global CPO price which the limits of CPO OF about US$ 750/ton.

The needs of biodiesel subsidy is predicted to reach Rp 7 billions. But the surplus of the fund will be allocated to palm oil replanting programme for the farmers and reaches programmes. But at least, by the emerge of CSF policy, the government will have new source of fund when the OF is still 0%.

The policy seems to be a short term one because if the CPO price could be more than US$ 750, the OF regulation could be normal again. It means, the CSF fund could be useless and even stop again. Furthermore, the CSF fund will be managed by a Public Service Agency undermanaged by Ministry of Economy. “This will be more complicated,” Paulus Tjakrawan said.

Then what about the government’s consistency to support biodiesel programme if the subsidy fund is in a short term? The urgency to highly absorb the biodiesel in the domestic is a long term target which needs funds and long term strategies too. If the policy has been made, will the national biodiesel industries grow? We don’t know yet.

No Result

1. The realization of biodiesel mandatory until the third quarter in 2014 reached 1.241.818 kiloliter or as same as 42% from the III quarter in 2014.

2. Biodiesel advantage by PT Pertaminauntil September 2014 reached about 916 thousands kiloliter within the target percentage reached 73% in the PSO sector and 9% in non Non PSO sector(not include in power plants). The achievement of biodiesel mondatory by BU BBm (both PSO) besides PT Pertamina, reached 161 thousands kiloliters or 35% from the III quarter in 2014.

3. The biodisel advantage implementation and PPO to the power plants in State Electricity Company in the third quarter 2024 reached 23% within the volume reaching 141 thousands kiloliters. It will be accelerated by supplying biodiesel more than 20% to fulfill the demands of State Electricity Company which will be used in Diesel Power Plants and the company itself for vegetable fuel, kinds of PPO

4. PT Pertaminahas finished to make the third tender to make FAME in 2014 -2015 about 730.000 kiloliters so it is projected, there was increasing, 40.000 kiloliter per month in October – December 2014. In total, Pertamina projects the realization of biodiesel advantage in 2015 reached 1,53 millions kiloliters.

BIODIESEL MANDATORY IMPLEMENTATION IN 2014

Source: Statistic Book of New and Renewable Energy and Energy Conversion, 2014


SEA Oleochemicals Market:

Dynamics of the Refined Glycerine Market in Southeast Asia

SOUTHEAST ASIA HAS BECOME THE KEY PRODUCTION CENTRE FOR OLEOCHEMICALS DUE TO ITS UNIQUE RAW MATERIAL ADVANTAGES, SHIFTING CONSUMER PREFERENCES FAVORING VEGETABLE-BASED PRODUCTS, AND LOW LABOR COST. THE PRODUCTS MANUFACTURED BY OLEOCHEMICALS COMPANIES IN SOUTHEAST ASIA ARE MAINLY BASIC OLEOCHEMICALS THAT INCLUDE FATTY ACIDS, FATTY ALCOHOLS, METHYLESTERS AND GLYCERIN.

Sharmila SubramaniamConsultant, Chemicals, Materials & Food Practice, Frost & Sullivan Asia Pacific

INFO FROST & SULLIvAN

The Southeast Asia oleochemicals industry is generally capital intensive, and export orientated, and it uses highly sophisticated

technology. The industry is primarily driven by the abundant availability of raw materials such as palm oil, palm kernel oil and coconut oil which offers cheaper feedstock prices for local oleochemicals manufacturers.

SEA GlycerineMarketIn the oleochemicals industry, oils

and fats are used as raw materials and the production of oleochemicals involves the liberation of glycerin. This is the traditional method where glycerin is produced after refining fats or oil. This is a valuable by-product of the industry and its economic value is significant to the profitability of the oleochemicals industry.

Glycerin is also produced as a by-product of biodiesel manufacturing, with around 100kg produced by each ton of methyl ester. The sale of glycerin provides an important additional revenue stream for biodiesel production.

The refined glycerin market is extremely unpredictable; this is because it is produced as a by-product and therefore, its supply is governed by production of its co-products. Additionally, the huge number of different applications for glycerin makes its demand unpredictable. While crude glycerin is generally sold to refiners, refined glycerin potentially has numerous customers. An increasing number of biodiesel companies are establishing refining plants for glycerin, as the refined product has a much higher value than the crude product.


The Southeast Asiarefined glycerinmarket is estimated to grow to $131.9 million by 2020. The main driver of the Southeast Asian refined glycerin market is the increasing end-user applications.

The major end markets forrefined glycerinare for pharmaceuticals, cosmetics &toiletries, food & beverage,and tobacco sectors.

The major countries participating in the production of refined glycerin in Southeast Asia are namely, Malaysia and Indonesia.

Key Market dynamics: Market drivers and restraints affect the overall market dynamics of the Refined Glycerinmarket. These include:

Market driversIncreasing demand for traditional

and niche uses of glycerin:Traditional

applications of glycerin are numerous, with approximately 60% being consumed in the cosmetics, pharmaceutical, food and tobacco industries and technical applications. In personal care applications, glycerin is used as a humectant, an emollient, and as a softening agent. As glycerin is able to provide all of these qualities, it is particularly useful in skin care and hair care products. As the personal care industry develops, the demand for glycerin is also likely to be on the rise.

Growing demand from new uses of glycerin:Glycerin is increasingly being used in a variety of applications, ranging from personal care to technical applications. Market participants are continuously searching for new applications for glycerin. There is an abundant supply of crude glycerin in the Southeast Asian market due to

development within the biodiesel market which increased biodiesel capacity. There is an urgent need to divert the oversupply of this glycerin into new applications.

Epichlorohydrin (ECH) is currently the main consumer of glycerin among these new applications; it is likely to remain so in the future as well, principally because the process to produce ECH is relatively simple and the price is relatively high. In 2013, the ECH market size was estimated to be 1.6 million MT. ECH is used mainly to produce epoxy resins.

Increasing demand from the end-user markets in China and India drives market growth:Refined glycerin is increasingly being exported to China and India due to various application needs ranging from personal care products to resins, and pharmaceuticals to food & beverages.Economic growth in Southeast Asia has consequently, fuelled growth within the oleochemicals industry. This has enabled glycerin producers in Malaysia and Indonesia to expandtheir oleochemicals base by increasing their capacities and caterto local and overseas end-user applications.

Growth in demand due to substitution of glycerin to

polyols: Glycerin competes with other polyols, such as sorbitol, pentaerythritol, trimethylol propane, and so on; whilst glycerin’s properties are superior, it is often not employed on account of its high costs. The sorbitol market is estimated at 1.2 million tons per annum. Glycerin can be used as a substitute to sorbitol. Around 80% of the product is used for manufacturing toothpaste, and the rest is used for food and cosmetic applications. Companies such as Colgate-Palmolive Company have substituted about 10,000 MT of sorbitol with glycerin in Europe for their toothpaste-manufacturing processes, and Unilever is planning large volumes of substitution in South America. Glycerin can be used as a substitute for propylene glycol in the animal feed industry and as an energy booster against keratosis. The substitution of other more expensive polyols by refined glycerin, such as pentaerythritol in paints, is ongoing in India and China and has already occurred in large volumes in other parts of the world.

Market restraints High investment in capital

expenditure to refine crude glycerin is a

Food and Food Ingredients

• Sweetener [as a sugar substitute] in cake and drink mixes• Additives [E422] in food flavorings and extracts [vanilla]• Texture improver in ice cream• Food emulsifier in the manufacture of mono and diglycerides• As a polyglycerol ester going into shortenings and margarines

Pharmaceuticals • Main ‘body’ in cough syrups and ear infection lotions• Vitrification of blood cells for storage in liquid nitrogen• Laxative when carried in a suppository• Plasticizer in gelatin-based capsules• Prevents tannin precipitation in ethanol extract of plants and used as a substitute for ethanol in herbal extractions

Personal Care • Replaces lost moisture in skin lotions• Improves flowability in shampoo• Transparent soap bar formulation• Component of glycerol soap for ultra-sensitive skin as it prevents dryness

Tobacco • Functions as a humectant for tobaccosTechnical • Manufacture of triacetin, diacetins, medium chain

triglyceride oil, and glycerin monostearate• Component for alkyd resin and polyether polyols production• Manufacture of nitroglycerin

Industrial • Mould release agent• Manufacture of Polyurethane hard foams

APPLICATIONS OF REFINED GLYCERIN


barrier to market growth:The process of producing refined glycerin from crude glycerin is expensive and requires heavy investment as well as prior technical expertise. This poses a barrier to the entry of new market participants, resulting in reduced competition among existing market participants. This is likely to affect the refined glycerin market over time by reducing the future scope for technological innovations and thereby, decelerating the market.

Oversupply of crude glycerin lowers prices, restraining market growth:Crude glycerin is produced as a co-product by biodiesel plants, as well as by the oleochemicalsindustries that are also involved in the production of glycerin.

REFINED GLYCERIN MARKET: NEW APPLICATIONS FOR REFINED GLYCERIN WITH VOLUME ESTIMATES, GLOBAL, 2013–2020

Application 2013 2014 2015 2016 2017 2018 2019 2020

Epichlorohydrin (‘000 MT) 538 555 574 594 613 634 656 538Propylene glycol (‘000 MT) 215 222 230 238 245 254 262 215Glycerol carbonate, gi-butoxyl glycerin, glycerin tert butyl ether (GTBE), acrolein (‘000 MT)

108 111 115 119 123 127 131 108

Total (‘000 MT) 861 888 919 951 981 1,015 1,049 861

In the past few years, there has been an upsurge in the biodiesel sector in Asia-Pacific. Hence, resulting in oversupply of crude glycerin in the market which is likely to result in a decline in prices of the same, especially, as most biodiesel producers do not refine the glycerin that they produce. This trend of falling prices is expected to affect revenues in the crude glycerin market. One of the ways to tackle this problem of oversupply is to identify new applications for glycerin. While seeking newer avenues for glycerin use, it is important to note that forthcoming applications must be suitable enough to absorb the large amounts of crude glycerin present in the market.

Conclusion In conclusion, the refined glycerin

market in Southeast Asia is expected to grow as a result of the key driving factors. The key drivers driving demand within the refined glycerin market in Southeast Asia are theincreasing demand for traditional and niche uses of glycerine, growing demand from new uses of glycerine, and increasing demand from the end-user markets in China and India.However, the factors that restrain growth within this market are high investment in capital expenditure to refine crude glycerin as well as the oversupply of crude glycerinwhich lowers prices.


KNOWING MORE ABOUT THE MEANING OF SUSTAINABLE

Since last one decade, the urgency to implement sustainable practices has been raising in the world. It is strong too to national palm oil

industries.In the beginning, the urgency became

the good news for palm oil industries which were accused as the environmental destructions. Unfortunately, in the reality, sustainable scheme implementation seems to corner national palm oil industries and there are lots of foreign interests.

It became a feud. There were many arguments saying that the sustainable implementation would be continuedor not. Then in 2011, the government of Indonesia made a firm action by publishing the sustainable palm oil cultivation which is famously known as Indonesian Sustainable Palm Oil (ISPO).

The book of Gamal Nasir who is now the General Director of Plantation,

Ministry of Agriculture will tell lots of the sustainable concepts. Of course, this is seen from the perspective of sustainable implementation in Indonesia.

It is normal that this book will guide the readers to know more about the sustainable concepts in Indonesia. it gives many informations about the back ground, why the government should implement ISPO for all palm oil plantations in Indonesia.

In this book too, Gamal Nasir discusses about the importance to make farmers institution, the support to the palm oil plantation to be sustainable and the palm oil visions in the future.

Written in relax language, the readers are taken to see, know, and understand Gamal Nasir’s thought about the importance of palm oil industries in Indonesia, including the sustainable practices.(Atep Y)

BOOK INFO

Judul : Think Palm Oil With a Cup of CoffeeEditor : Ir Gamal Nasir, MsiPenerbit : Media PerkebunanHal : 165ISBN : 978-602-17095-2-8Tahun : 2015

KUALA LUMPUR - Xinghe Holdings Bhd, the vegetable oil producer in China has signed the strategical partnership with Arab Supplier Fabrication and Retail Sdn Bhd (Asfar) to build a cooking oil factory in Port Klang Free Zone. The total investment from the jointventure business reaches RM 90 millions which will be done in next five years. Executive Director of Xinghe, Stepahn Ng said, the investment includes the building of storage and the distribution for the markets in Middle East. StarBiz wrote, the factory will be producing up to 10 thousands tons oil per month.

MINNEAPOLIS – A United States company running food industry, General Mills agreed to make partnership with the small farmers, the NGO and the other industrial stakeholders to make products

from sustainable source in 2020. Until 2014, 98% of the total productions of the company had used sustainable palm oil material and will be 100% in 2015 to make the products.

KUALA LUMPUR - CB Industrial Product Holdings Bhd (CBIP) has agreed to make two palm oil factory contracts which reaching RM 25,6 millions. As quoted from Starbiz, CBIP has made contract to build the 100th palm oil factory after the company developed the technology and gets the patent in the beginning of the century. Through its subindustry, Modipalm Teknik Sdn Bhd has signed the contract with Niagamas Gemilang which reaching RM 22,09 millions to build palm oil factory within 30 tons fruit/hour and could be increased to be 60 tons fruit/hour. CBIP itself has

signed the contract to develop the factory capacity which Niagamas Gemilas has had to be 60 tons fruit/hour which was 30 tons fruit/hour. The investment itself reached about RM 3,37 millions.

KUALA LUMPUR - Vice Minister of Malaysia, Datuk Razali Ibrahim said, Felda Global Ventures Holdings Bhd (FGV) has decreased old palm oil trees about 43%. They are less than the trees in 2012 which cut off the trees about 57%. This way, Ibrahim thought as quoted from Bernama, is to balance the stocks by hoping to influence the global crude palm oil (CPO) price. Now FGV could sell CPO about 3 millions tons within the turnover reaching RM 2,5 billions in the first quarter of 2015.

IN BRIEF


CERMIN

Kris Hadisoebroto

SHOULD CSF BE LIKE OF

THE EMERGE OF CPO SUPPORT FUND (CSF) POLICY SEEMS TO OBSCURE THE GIVING BACK OF OUT FEE (OF) FOR NATIONAL PALM OIL INDUSTRIES. IT IS HOPED, CSF FUNDS ARE TRANSPARENTLY MANAGED. DON’T LET THE CSF FUND BE AS SAME AS THE OF OR EVEN MAKE THE NEW OTHER POLICY.

After taking a very long time of “fasting” for there has been no income from the crude palm oil (CPO) export Out Fee, all of a sudden,

the government makes the policy, CPO Supporting Fund (CSF) policy, which reaching US$ 50/ton from the exported CPO. Its goal is to support the increasing of blending ration of vegetable fuel of bio-diesel to be 15% since April 2015.

By implementing the policy, the needs of CPO for biodiesel (in domestic country) are hoped to increased 4 to 5 millions tons. Meanwhile, the ability of the factories to absorb biodiesel in Indonesia just reaches about 2 millions tons per year. This condition happened for the biodiesel export prospect is still in a bad situation because the petro diesel or diesel is more competitive than the biodiesel in palm oil – base.

The CSF policy is actually good and realistic enough because it can be the alternative to increase the CPO absorption in domestic markets, accelerate the programme with the increasing biodiesel

blending ration and help the subsidized diesel because of the cheap crude oil.

It is realized that every time the government changes the CPO price limits which hits the OF, the regulation maker seems to be “deliberate”. This is why CSF policy is made because of no income from OF.

Unfortunately, if the CPO re-increases about US$ 750 or more than it, the businessmen will have double articles, they are, OF and CSF. So the policy, which is rumored that the businessmen (joining in Indonesian Palm Oil Businessmen Association) “obey”, might happen for the “share” to the regulation makers. the businessmen themselves really understand, besides PT Pertamina, there is no other agency or board wants to buy biodiesel in CPO – base in the domestic. On the other hand, the biodiesel exports are hopeless. So CPO becomes the “one to blame” in this country for years.

In the “open information” era, it is difficult for the government to make opinion which is out of the facts. It is strange too that the CSF policy will get the

supports from the businessmen or certain businessmen. It cannot be denied that it is hard too to expand the plantation because it is too hard to find. Beside that, the fruit price gets decreasing and the plasma farmers could not fulfill their economical needs.

It is not seen that the government will accomplish the promise to return the OF for the palm oil industries, especially when the CSF policy is made with the reason, it is a supportive tool to build the infrastructures, replanting and research and development programmes.

The management of CSF funds is hoped to be transparently done to fulfill the justice on the implementation of the policy. It is also as a control for the people on the non tax income.

In the end, the government seems to be lack of confidence to rely on CPO only. The exports of olein also gets the CSF mandatory within US$ 30 per ton. The other policy might be made. We don’t know it for sure.