Monday, 29 June 2015


Desi Kusumadewi, Director of RSPO Indonesia, declared that until May 2015 production of CPSO (Certified Sustainable Palm Oil) has reached 12.64 million tons, or 18% of world palm oil production. Approximately 51% CPSO is produced by Indonesia, 42% by Malaysia, 5% by Papua New Guinea, and 3% by other countries.

Meanwhile, production of CSPK (Certified Sustainable Palm Karnel) reached 2.88 million tons. Indonesia accounted for 49%, Malaysia 44%, Papua New Guinea 4%, and other countries 3%. Te size of RSPO-certified land worldwide reached 3.44 million hectares. Indonesia accounted for 45%, Malaysia 42%, Brazil 5%, Papua new Guinea 5% and other countries 3%.

Production of fresh fruit bunches (TBS) from RSPO-certified land reached 56.4 million tons, 47% from Indonesia, 45% from Malaysia, 5% from Papua new Guinea and 3% from other countries. Unfortunately, market acceptance is still lacking. Currently, those purchased by consumers in 2014 is only 48.6% of supply of 10.99 million tons of CPSO, and only 5.34 million tons were absorbed by market. Market acceptance in the future will be further enhanced.

There are two certificates of RSPO, namely certificates for manufacturers to ensure that palm oil is produced in accordance with principles and criteria, and the second is to ensure that palm oil traded is derived from certified plantations. This rigorous certification system will prevent consumers from consuming palm oil which is not sustainable.

RSPO supply chain certificate is to ensure that CSPO trade in very phase in every phase includes derivative products, ranging from handling, storage, transportation, trading, refining, packaging and labeling.

To increase market acceptance of RSPO, two trading systems were applied, namely CSPO physical trading and CPSO virtual trading called Green Palm Program. There are four supply chain systems, i.e. Identity Preserved (IP), strengthened (SG), Mass Balance (MB), and Book and Claim (BC).

IP is very exclusive. CPSO is only from one source which is certified and must be completely separate from non-CPSO, starting from PKS, transportation, storage tank up to the processing industry. With this system, CSPO arriving at the processing industry originates from a single source that has been certified so it is easily traceable. Building infrastructure for this system is very expensive. The final product contains RSPO trademark.

Meanwhile, CSPO segregation from various factories can be mixed, but must be kept separate from non-CSPO. So the oil consumed by end users are guaranteed to be derived from certified plantations, only being transported, in storage tanks everything has been mixed from a variety of certified plantations and PKS. The final products is certified with RSPO trademark.

Mass balance mechanism allows CSPO and non-CSPO to be mixed in the process of transportation, storage tank and derivative industry. Only when they become finished products, not everything is allowed to be labeled with RSPO trademark. “For example, margarine factory processed 2000 tons of palm oil, 1000 tons of CSPO and 1000 tons of non CSPO. Margarine products that may be labeled are those whose 1,000 tons are from the CSPO, “he said. RSPO trademark labels include the word “mixed”.

While, in BC there is absolutely no physical trading of CSPO but only sale & purchase of certificate. For example, one factory has difficulty in getting CSPO, but they are very supportive. Therefore, despite receiving uncertified for 1 ton, for example, a factory demonstrates a commitment for 2000 tons, they could buy CPO from anywhere and then they buy CSPO from a certified plantation with a price of, for example, USD 5/certificate. The advantage for the producer, in addition to selling CPO is that they could also sell certificates. The final product may not include RSPO trademark.

Starting in 2015, EU requires all products to specify the type of oil used. If formerly, the word” vegetable oil” is enough, now it must be clearly stated “palm oil” , “soybean” and others. With the onslaught of negative campaign of palm oil, this condition is feared to make consumer not wanting to buy the product. But, with the RSPO trademark label, it is expected that this will make the RSPO trademark label, it is expected that this will make consumers still choose the product because the raw material is guaranteed sustainable.

Currently the market is buying BC more, especially in Europe, because the products that enter Europe are no longer in the form of CPO, but its derivatives products, so that it is difficult to track whether or not it is derived from CSPO, in contrast to china and India who buy CPO more.

Now, it has begum to shift to sales of CSPO with IP mechanism. SC and MB has increased, while BC is declining. This is related to industry associations in the Netherlands, Belgium, England, France, Germany and Sweden which are committed to using 100% CSPO by 2020. (E)  

Business News - May 29, 2015


Coconut, which has been widely cultivated by people, was eyed by two companies, namely Salim Group and Unilever. The two companies have now developed superior coconut seedlings in North Sulawesi. Novarianto Hengky, Research Specialist of Plantation Research center, stated his.

Unilever developed coconut because it has difficulty in getting coconut sugar for say sauce industry according to the desired quality specifications.

Today, with he increasing number of large companies entering the soy sauce industry, the demand for brown sugar sauce that meets industry quality standards in increasing. The problem is that brown sugar made by artisans is relatively fixed.

Increase in demand is not followed by production increase. Many people are no longer interested in becoming palm tree tappers. Every year it is estimated that 70 tappers died or injured because of falling from the height of a coconut tree.

Therefore, now Unilever is concentrating on efforts to produce hybrid coconut whose fruit/sap production is high and its stem is short. With a relatively short hybrid coconut palm trees, there is no need to climb, and tapping is not too difficult.

Meanwhile, Salim is concentrating on coconuts with oil contents for the development of downstream industries. Currently, products derived from coconut oil are needed by the food & beverage, pharmaceutical, and chemical industries. These products are of high economic value so that Salim group is dealing with research very seriously.

All coconut stakeholders who are members of the Indonesian Coconut Board have determined to realize Coconut-Based Sustainable Bioindustry Agriculture Development. The Indonesian Coconut Board members consist of government, researchers, academicians, business both farmers and processing industry, and traders.

Coconut bioindustry is target to produce a variety of high-value, environmentally friendly, and sustainable coconut products by applying various components superior technology. In the upstream, farmers’ coconut plantations to increase income need a horizontal diversification by planting intercropped plants, namely coffee, cocoa, areca nut, and coconut & livestock integration. In this way, income and welfare of farmers will increase.

Coconut bioindustry development should proper coconut farmers through optimal product diversification, meeting the needs of consumers, a balanced benefit from upstream to downstream, price stability, and support environmental, monetary & fiscal policies.

Currently, coconut policy expected from the government which is urgent to be implemented immediately is acceleration of coconut plant rejuvenation with superior seeds, development of high value-added coconut industry and marketing of the products.

Currently, like other agricultural commodities, problems faced by farmers are declining copra prices. Without the development of coconut bioindustry, the coconut industry could die. Hence, the development of the coconut bioindustry will be implemented in a short time.

Coconut, until today, is one of the commodities that have an important role in the commodities that have an important role in the life of Indonesia society. All parts of this plant can be used to meet economic, social and cultural needs.

One of the problems of coconut at the farm level is low coconut productivity at the farm level, which is only 1.2 tons of copra per hectare/year. This is because of not using superior seeds and non-optimal application of farming techniques by farmers. The potential for superior coconut production can reach 3-4 tons of copra per hectare/year.

So, currently the efforts that are continuously made by the Coconut must have high oil content, i.e. about 60% and 8% protein % to be used as industrial raw material.

With oil and protein content according to standard, it can be used as an industrial raw material, coconut milk, and desiccated coconut. Coconut husk and shell should be relatively good for car seats, mattresses and others. Coconut shell is used in activated charcoal industry, while coconut water is used for soft drink and nata de coco industries. (E)  

Business News - May 27, 2015


The Ministry of Industry continues to develop national pulp and paper industry in order to maintain competitive in facing free trade. This is in line with the goal of industrial development by strengthening industrial structure that produces high value-added products which are globally competitive and environmentally sound.

“It is expected that the industrial sector, especially the pulp and paper industry, which a competitive advantage, can be instrumental in mobilizing the national development,” said Minister of Industry. There should b an application of industry standard that focuses on the efficiency of raw materials, water and energy, energy diversification, eco-design and low-carbon technologies with the goal of increasing productivity and minimizing waste.

Industry Minister Saleh Husin inaugurated Ground Breaking Paper Machine 3 of PT. Riau Andalan Pulp and Paper (RAPP) with an investment of IDR 4 trillion in Pelelawan, Riau, on Friday (May 22). The construction of Paper Machine 3 makes PT RAPP as national paper company that produces paper at a speed of 1.4km per minute so that there will be additional capacity of 250 thousand tons/year in the form of high-grade digital paper.

“I welcome the Ground Breaking Paper machine 3 which will increase the volume and speed of production of PT RAPP which will help encourage growth of the national pulp and paper industry in the in the future, “said the Minister of industry.

The minister also appreciates PT. RAPP that has given a broad multiplier effect by contributing in the creation of jobs for more than 5,000 direct workers and 90 thousand indirect workers. Additionally, PT. RAPP is one of the largest pulp and paper producers nationally with a production capacity of 2.8 million tons of pulp and 829 thousand tons of paper having international standards and can compete in the global arena.

It is expected that the establishment of the Ground Breaking Paper Machine 3 will be completed with a maximum contribution in meeting the demand for pulp and paper both by the domestic and export markets. Indonesia is one of the leading pulp and paper producers in the world, where pulp industry ranked the 9th and the paper industry in the 6th position. Meanwhile, in Asia, it ranked 3rd for the national pulp and paper industry.

Currently the installed capacity of national pulp paper industry reached 7.93 million tons/year of pulp and 12.98 million tons/year of paper with actual production of 6.4 million tons/year of pulp and 10.4 tons/year of paper, while the export performance of pulp and paper reached 3.50 million tons of paper with a value of USD 3.75 billion. While imports of pulp and paper reached 1.62 million tons of pulp with a value USD 1.27 billion and 0.72 million tons of paper with a value of USD 1.36 billion.

After inaugurating the Ground Breaking Paper Machine 3 of PT RAPP, Minister of industry also witnessed the launching of From Zero to Hero Series: SMEs Appreciation Day and at the same time visiting the small and medium industries developed by PT. RAPP. The launch of the program is a manifestation of corporate social responsibility (CSR) of PT RAPP. “People’s economy-based activity is expected to create a productive society and to encourage the independence of the community around the location of the company,” he explained. (E)

Business News - May 27, 2015