Palm Oil Today Indonesia July - Sept Edition 12 July

Palm Oil Today Indonesia

July - September 2021

Vol.2 No.3 July - September 2021

Afiliated With :

BILINGUAL : ENGLISH & BAHASA INDONESIA A Publication of : Indonesia

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INDONESIA BELUM MEMUTUSKAN APAKAH AKAN MEREVISI BEA CUKAI EKSPORT MINYAK KELAPA SAWIT, KATA PEJABAT INDONESIA YET TO DECIDE ON WHETHER TO REVISE PALM OIL EXPORT LEVY, SAY OFFICIALS

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PROSPEK PEREKONOMIAN INDUSTRI MINYAK KELAPA SAWIT INDONESIA DARI SUDUT PANDANG PEMASOK : SEBUAH WAWASAN EKSLUSIF BERSAMA MICHAEL KESUMA, HEAD OF INVESTOR RELATIONS DARI PT BINASAWIT MAKMUR, SAMPOERNA AGRO THE INDONESIAN PALM OIL INDUSTRY ECONOMIC OUTLOOK FROM A SUPPLIER'S VIEWPOINT : AN EXCLUSIVE INSIGHTS WITH MICHAEL KESUMA, HEAD OF INVESTOR RELATIONS OF PT BINASAWIT MAKMUR, SAMPOERNA AGRO

MALAYSIA NO.1 KCP & EFB PIONEER MANUFACTURER SPARE PARTS MACHINERY TURNKEY MECHANICAL SYSTEM PROVIDER 3S BRANCHES YKL GROUP O F

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C O M P A N I E S

STAY IN TOUCH

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Incorporated in 1996 in Indonesia with the target to be one of the leading companies to provide distributed power in Indonesia, Kaltimex Energy was the pioneer company to obtain The First IPP license in the private sector to operate a 23 MW Power Plant, for a large textile company in Central Java. Since then, Kaltimex Energy has installed 500MW in Kalimantan, Sulawesi and Sumatera including for Rental (PLN), Palm Oil and Sugar sector. and Transfer (B.O.O.T) basis or as an Independent Power Producer (IPP). Kaltimex Energy is also proud to serve the Palm Oil & Sugar Industry in Indonesia, having installed more than 220 units of Siemens – Dresser Rand Steam Turbines, generating around 300 MW of electricity in total.

With the development and the necessity to move towards greener and sustainable energy, Kaltimex Group is now actively developing Renewable Energy projects through the usage of Biogas, implements international standards for Quality Management System, Environment Management System and Occupational Health & Safety Management System (HSE) to ensure that the services delivered are best in the class.

STEAM TURBINES Kaltimex Energy represent the world’s leader in Steam Turbines; Dresser-Rand (A Siemens owned business), for the non-oil & gas market of Indonesia.Dresser-Rand has one of the most comprehensive steam turbine selections in the industry and provide solutions for paper mills, steel, sugar, district energy, marine and palm oil. Applications include combined cycle, cogeneration, combined heat and power (CHP), biomass, and waste-to-energy. Kaltimex Energy is proud of the over 200 units of Siemens Dresser-Rand Steam Turbines it has successfully packaged, installed & commissioned across Indonesia.

GAS ENGINES Range from 400 kW to 4,500 kW. In this way, it is possible to set up power plants with an output of up to MWM's installations in Indonesia have reached more than 420 MW, spread across the country.

The amount has given a clear message that MWM's brand is proven and well accepted in Indonesia.

BIOGAS TECHNOLOGY As a Total Power Solutions company, we have a higher calling to develop power plants from renewable energy sources, such as Municipal Solid Waste, Agricultural Waste and any other Organic or Inorganic Waste.

Kaltimex Energy is proud to announce that we have recently entered into an exclusive agreement with Wabio Technologie, GmbH to develop Biogas Plants.

The Biogas after going through a biogas desulphurization process could be directly to fed to Gas Engines to generate electricity.

PT. KALTIMEX ENERGY Menara Karya Building 19th Floor, Unit G-H Jl. HR. Rasuna Said Blok X-5 Kav. 1-2 Jakarta 12950 INDONESIA Phone Fax Email Website

: : : :

+62.21 5794.4600 (hunting) +62.21 5794.4609/10 kaltimex@kaltimex.co.id https://www.kaltimex-energy.com

Indonesia - Bangladesh - Singapore - Philippines - Myanmar

EDITOR’S MESSAGE

Managing Editor Susan Tricia

Publications Manager Amelia Lim

indo@fireworksbi.com

Editorial Consultant Kenny Yong

Content Editor Nur Atthirah Zawanah Azmee

Media Executives Paulina

Graphic Designer Felicia Zhang

Publisher : Indonesia

An abundance of good news engulfed us with Europe and US bearing most of it! In the ASEAN region, the pace of inoculations has also picked up! Despite some facing fresh lockdowns due to the highly transmissible new variants, I am glad the Indonesian government had taken a more “balanced” approach in addressing this.

More localized lockdowns on target areas gives businesses more “breathing space” and does not disrupt the economy as much as the strategies adopted by our neighbouring countries! Indonesia’s massive economy did not take a beating as much as our peers and this approach seemed to be working wonders for us! In this edition we would be finding out more about on the latest palm oil news in the region and PT Esri had also shared with us how their technology could benefit the palm oil industry.

In a “no holds barred” interview, Sampoerna poured out their challenes to us during the pandemic and shares with readers on what the future holds. With the world progressively opening, I am totally awed and impressed with Indonesia’s handling of the pandemic from pace of vaccination to the economic sectors. I can say this region do have to take a leaf out of our book on how to do a “balancing act” during the pandemic and I am indeed proud to be Indonesian.

Seeing you really soon!

Susan Tricia Managing Editor

DISCLAIMER

The content of Palm Oil Indonesia Today Magazine (and website) does not necessarily reflect the views of the editor or publishers and are the views of its contributors and advertisers. The digital edition may include hyperlinks to third-party content, advertising, or websites, provided for the sake of convenience and interest. The publishers accept no legal responsibility for loss arising from information in this publication and do not endorse any advertising or products available from external sources.

Palm Oil Indonesia Today Magazine and its website does not warrant that the information in it will be error-free or will meet any particular criteria of performance or quality. Your use of the information contained in the Palm Oil Indonesia Today magazine and website is at your own risk. You assume full responsibility and risk of loss resulting from the use of this website or information in it.

None of Palm Oil Indonesia Today, PT Fireworks Indonesia or its affiliates, or any partners, principals, stockholders or employees of any thereof will be liable for any special, indirect, incidental, consequential or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence) or otherwise, relating to the use of this website or information contained in it.

No part of this publication may be reproduced or stored in a retrieval system without the written consent of the publishers. All rights reserved

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+62 778 488 3726 indo@fireworksbi.com

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Palm Oil Today Indonesia

July - September 2021

PALM OIL TODAY INDONESIA

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BERITA REGIONAL / REGIONAL NEWS 6

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BERITA DUNIA / WORLD NEWS 14

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(BHS) : Bursa Malaysia akan Meluncurkan Kontrak Minyak Kelapa Sawit yang Baru (ENG) : Bursa Malaysia to Launch New Palm Oil Contract (BHS) : Kolaborasi adalah Kunci Peningkatan Pelataihan bagi Petani Kecil Kelapa Sawit di Indonesia (BHS) : Indonesia Belum Memutuskan Apakah Akan Merevisi Bea Cukai Eksport Minyak Kelapa Sawit, Kata Pejabat (ENG) : Indonesia Yet to Decide on Whether to Revise Palm Oil Export Levy, Say Officials (BHS) : Perkebunan Kelapa Sawit di Indonesia Didesak untuk Memperketat Pembatasan COVID-19 Saat Infeksi Meningkat (ENG) : Indonesian Oil Palm Plantations Urged to Tighten COVID-19 Curbs As Infections Climb (BHS) : KLK Akan Mengambil Alih Perkebunan IJM Senilai 1,5 milyar Ringgit Malaysia (ENG) : KLK Set to Take Over IJM Plantations for RM1.5bil

(BHS) : Potensi Larangan Minyak Kelapa Sawit, Produk Sarung Tangan oleh Kanada Tidak Berdasar (ENG) :Potential Ban on Palm Oil, Glove Products by Canada is Unfounded (BHS) : WTO Menyetujui Permintaan dari Kuala Lumpur untuk Membentuk Panel yang Mengkaji Hukum Uni Eropa yang Membatasi Penggunaan Bahan Bakar Hayati Berbasis Minyak Kelapa Sawit (ENG) : WTO Agreed To A Request From Kuala Lumpur To Establish A Panel Examining A European Union law That Restricts The Use of Palm oil-based Biofuels

PENGUMUMAN / ANNOUNCEMENTS 16

(BHS) : Schneider Electric Raih Penghargaan Corporate Knights Sebagai Perusahaan Paling Berkelanjutan di Dunia

BERITA UTAMA / COVER STORY 18

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(BHS) : Prospek Perekonomian Industri Minyak Kelapa Sawit Indonesia dari Sudut Pandang Pemasok: Sebuah Wawasan Eksklusif Bersama Michael Kesuma, Head Of Investor Relations dari PT Binasawit Makmur, Sampoerna Agro (ENG) : The Indonesian Palm Oil Industry Economic Outlook From A Supplier’s Viewpoint: An Exclusive Insights with Michael Kesuma, Head Of Investor Relations Of PT Binasawit Makmur, Sampoerna Agro

LAPORAN SPESIAL / SPECIAL REPORT 22

(BHS) : Pengabain Nigeria terhadap Kelapa Sawit Menekan Kelapa Sawit Turun dari urutan Global (ENG) : Nigeria's Neglect of Oil Palm Pushed It Down Global Pecking Order

BERITA KEBERLANJUTAN / SUSTAINABILITY NEWS 28

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(BHS) : Lebih Dari 750 Sertifikat ISPO Dikeluarkan untuk Produsen pada Tahun Lalu (ENG) : More Than 750 ISPO Certificates Issued For Producers as Of Last Year (BHS) : Cargill Merencanakan Kilang Minyak Kelapa Sawit Berkelanjutan Indonesia (ENG) : Cargill Plans Indonesian Sustainable Palm Oil Refinery

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IN THE HOT SEAT

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(ENG) : Oils And Fats Industry’s Outlook On The Ongoing Pandemic: An Exclusive Interview With Jakob Helms, Ceo Of Jj-Lurgi

INOVASI & TECHNOLOGI / INNOVATIONS & TECHNOLOGY 34

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(BHS) : Memanfaatkan Sensor Senix ToughSonic untuk Pengukuran Tangki Minyak Kelapa Sawit (ENG) : Utilizing Senix ToughSonic Sensors for Palm Oil Tank Measurement (BHS) : Adopsi Teknologi di Industri Minyak Kelapa Sawit: Wawancara Eksklusif Dengan Cahyo Nugroho, Chief Industry Solution Office Of PT Esri Indonesia (ENG) : Adoption Of Technology In The Palm Oil Industry: An Exclusive Interview With Cahyo Nugroho, Chief Industry Solution Officer Of PT Esri Indonesia (ENG) : AI Driven Plantations “You just can’t differentiate between a robot and the very best of humans“ - Isaac Asimov

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REGIONAL NEWS

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Palm Oil Today Indonesia

July - September 2021

BURSA MALAYSIA AKAN MELUNCURKAN KONTRAK MINYAK KELAPA SAWIT YANG BARU

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alaysia berencana untuk meluncurkan kontrak masa depan minyak kelapa sawit pada kuartal ketiga, memungkinan pedagang di dua negara bagian produsen terbesar kelapa sawit mendapatkan harga yang lebih tinggi dan opsi yang lebih layak untuk pengiriman fisik. Perdagangan Derivatif Bursa Malaysia mengelola kontrak masa depan minyak kelapa sawit (crude palm oil futures contract / FCPO) Malaysia, yang menetapkan patokan harga global untuk minyak nabati termurah dan yang paling banyak digunakan di dunia. “Kontrak (baru) mencerminkan sebagian besar spesifikasi FCPO, dengan peningkatan yang dibuat untuk menguntungkan pemain minyak kelapa sawit di Sabah dan Sarawak,” kata Samuel Ho, Direktur Utama Perdagangan Derivatif Bursa Malaysia.

Terletak di Pulau Kalimantan, Sabah dan Sarawak berkontribusi sebesar 45% dari produksi minyak kelapa sawit mentah Malaysia.

Malaysia merupakan produsen dan eksportir minyak kelapa sawit terbesar kedua di dunia setelah Indonesia.

Pedagang minyak kelapa sawit di kedua negara bagian tersebut mengatakan bahwa kontrak minyak kelapa sawit menempatkan mereka pada posisi yang merugikan minyak kelapa sawit Sabah dan Sarawak biasanya dijual dengan harga diskon ke semenanjung Malaysia, sementara biaya pengangkutan juga lebih mahal karena titik pengiriman yang juga terletak di semenanjung Malaysia. Hal ini membuat pengiriman fisik tidak layak. Kontrak baru Kontrak Masa Depan Minyak Kelapa Sawit Malaysia Timur (East Malaysian Palm Oil Futures / FEPO) akan melayani pengiriman fisik di Sabah dan Sarawak melalui tiga pelabuhan yang ditunjuk, kata Ho. Kontrak tersebut juga memberikan penemuan harga yang lebih tinggi bagi pasar Sabah dan Sarawak serta jalan bagi pedagang untuk melindungi mereka dari risiko harga, tambahnya. FEPO akan mulai diperdagangkan lebih awal pada pukul 9 pagi bertepatan dengan waktu perdagangan Tiongkok, kata Ho. FCPO saat ini mulai diperdagangkan pukul 10:30 pagi.

Andrew Cheng, kepala eksekutif Asosiasi Pemilik Perkebunan Kelapa Sawit Sarawak, mengatakan bahwa produsen di kedua negara bagian tersebut kehilangan lebih dari 1 milyar Ringgit Malaysia (241,7 juta Dolar Amerika) setiap tahun karena selisih harga dan kontrak baru dapat menghapus itu. Berdasarkan data dari Dewan Minyak Kelapa Sawit Malaysia, harga minyak kelapa sawit mentah Sarawak telah diperdagangkan dengan diskon sebesar 13 Ringgit Malaysia hinga 198 Ringgit Malaysia per ton sejak Januari 2020 hingga April 2021, katanya. “Ia akan memungkinkan kami untuk mendapatkan harga yang lebih baik, dan dengan penghematan tersebut kami dapat memperluas industri hilir di Sarawak agar dapat terintegrasi penuh dan lebih dewasa,” tambahnya.

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BURSA MALAYSIA TO LAUNCH NEW PALM OIL CONTRACT Malaysia plans to launch a new palm oil futures contract in the third quarter, allowing traders in the nation’s two largest palm producing states greater price discovery and a viable option for physical delivery. The Bursa Malaysia Derivatives Exchange manages Malaysia’s crude palm oil futures contract (FCPO), which sets the global price benchmark for the world’s cheapest and most widely used edible oil. “The (new) contract mirrors most of the FCPO specifications, with enhancements made to benefit Sabah and Sarawak palm oil players,” said Samuel Ho, CEO of Bursa Malaysia Derivatives. Located on the island of Borneo, Sabah and Sarawak contribute 45% of Malaysia’s crude palm oil production. Malaysia is the world’s second-largest palm oil producer and exporter after Indonesia.

Palm oil traders in the two states said the current palm oil contract puts them at a disadvantage Sabah and Sarawak crude palm oil is typically sold at a discount to spot prices in peninsular Malaysia, while freight costs are higher as the designated delivery points are also in the peninsula. This makes physical delivery unfeasible.

The new contract the East Malaysian Palm Oil Futures (FEPO) will cater for physical deliveries in Sabah and Sarawak through three designated ports, Ho said. The contract also provides greater price discovery to the Sabah and Sarawak market and an avenue for traders to hedge their price risks, he added. FEPO will start trading earlier at 9am to coincide with Chinese trading hours, Ho said. The current FCPO contract starts trading at 10:30am Andrew Cheng, chief executive of the Sarawak Oil Palm Plantation Owners Association, said producers in the two states lose more than RM1bil (US$241.7mil) a year due to the price difference and that the new contract can eliminate that. Based on Malaysian Palm Oil Board data, Sarawak’s crude palm oil price had been trading at a discount ranging between RM13 and RM198 a tone during January 2020 to April 2021, he said. “It will allow us to fetch a better price, and with the savings we can expand the downstream industry in Sarawak to be fully-integrated and mature,” he added.

Palm Oil Today Indonesia

July - September 2021

REGIONAL NEWS

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KOLABORASI ADALAH KUNCI PENINGKATAN PELATIHAN BAGI PETANI KECIL KELAPA SAWIT DI INDONESIA

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emberikan pelatihan tentang keberlanjutan bagi petani kecil di Indonesia, yang merupakan salah satu produsen minyak kelapa sawit terbesar di dunia, merupakan sebuah tantangan. Ada sekitar 2,5 juta petani kecil dalam negeri tersebut sebuah aset yang penting bagi industri. Namun masih banyak petani kecil yang independen mungkin karena isolasi geografis, kurangnya akses ke pelaku rantai pasok, atau tidak adanya dukungan dari organisasi pendukung tidak memiliki akses terhadap pelatihan terstruktur atau sumber pengetahuan lainnya yang terpercaya dalam perkebunan kelapa sawit.

Melihat hal ini, RSPO merintis Akademi Pelatih Petani Kecil (Smallholder Trainer Academy / STA). Berdedikasi untuk mengembangkan komunitas pelatih di seluruh negeri, ini membantu membangun kapasitas di tengah petani kecil yang terus bertumbuh.

Sejak peluncurannya di November 2019, kini lebih banyak petani kecil yang mampu menunjukkan bukti kepemilikan lahan yang sah, menggunakan praktik pertanian yang baik dan merupakan anggota kelompok petani (koperasi, asosiasi, ddan lain-lain). Kunci kesuksesannya adalah kemitraan. Dengan bekerja sama dengan 12 organisasi lokal di Indonesia, STA RSPO telah berhasil melatih 6.635 petani kecil terhitung hingga April tahun ini.

Guntur Prabowo, Manager Program Petani Kecil di Indonesia, mengatakan “meskipun pengetahuan saja tidak dapat (setidaknya tidak langsung) mengatasi masalah lain, seperti kurangnya akses ke teknologi, pasar dan pembiayaan, ia masih merupakan kondisi yang diperlukan untuk menciptakan mata pencaharian yang berkelanjutan. Tanpanya, praktik pertanian tradisional, yang mungkin termasuk praktik yang merusak lingkungan, diturunkan dari generasi ke generasi”. Tidak ada solusi “satu untuk semua” dikarenakan kebutuhan yang berbeda dan kenyataan dari berbagai petani kecil.

Dengan kenaikan 170% petani kecil yang mendapatkan sertifikasi tahun lalu, kami melihat bahwa sebagian besar biaya program berasal dari pemberian pelatihan dan dukungan teknis. “Kami perlu bekerja sama dengan lebih banyak organisasi dan perusahaan untuk mempermudah dan mempermurah akses pengetahuan dan keahlian bagi petani kecil” tambahnya.

STA menyadari kebutuhan untuk beralih dari mengembangkan organisasi menjadi pengembangan dampak melalui jaringan perantara, instansi, organisasi, dan inisiatif yang secara aktif mengejar tujuan yang sama. Hal ini memastikan upaya membangun praktik yang ada dan mendukung program pemerintah yang ada untuk meningkatkan dan menjangkau lebih banyak petani. Kolaborasi pelatihan terbaru antara STA dan Yayasan Kehati di bawah naungan program SPOS Indonesia, memberikan pemahaman akan keberlanjutan dan mendorong petani kecil di tiga provinsi penghasil untuk berpartisipasi dalam rantai nilai formal sertifikasi ISPO & RSPO. Irfan Bakhtiar, direktur SPOSI berpendapat bahwa inilah saatnya bagi petani kecil untuk memiliki kesadaran penuh untuk memenuhi standar keberlanjutan. “Dengan ISPO menjadi wajib pada tahun 2025, harus ada metode pengembangan kapasitas generik yang dikembangkan bagi petani kecil.” Pelatihan di Kalimantan Tengah, Kalimantan Timur dan Sulawesi Barat dipimpin oleh Pelatih Utama STA dari berbagai organisasi yang berpartisipasi yang berfokus pada pendekatan pembelajaran orang dewasa berdasarkan kebutuhan dan hasil kelompok petani. Sesi pelatihan fokus pada topik yang mencakup keberlanjutan lingkungan, ekonomi dan sosial serta pembentukan kelompok kesehatan dan keamanan petani kecil.

Topik-topik tersebut dikurasi dengan tujuan membantu petani kecil lebih memahami pendekatan berkelanjutan menuju penanaman pohon kelapa sawit jangka panjang.

Harris Silalahi, salah seorang Pelatih Utama STA merupakan pemimpin pelatih untuk pelatihan bersama Yayasan Kehati. Bapak Harris memiliki 15 tahun pengalaman sebagai konsultan individu dan pelatih di bawah De Guru Consulting di Indonesia. Ia menjelaskan bahwa “Sama seperti semua orang, petani kecil kelapa sawit belajar dengan cara lain. Misalnya, sementara materi cetak cenderung

Para petani di perkebunan (Sumber dari RSPO) beresonansi dengan orang dengan kecerdasan visual spasial dan verbal linguistik, pembinaan dan pendampingan untuk pembelajaran berbasis transaksi mungkin lebih berhubungan dengan kecerdasan interpersonal dan intrapersonal, dan pelatihan berbasis lapngan misalnya dapat memicu kecerdasan logis orang-orang dengan kecerdasan matematis dna naturalistik.“ “Petani kecil juga belajar di tempat yang berbeda. Bagi kebanyakan orang, ruangan kelas akan terasa tidak biasa dan membosankan namun mungkin juga jauh dan nilai kerugiannya lebih tinggi. Tempat belajar yang lebih layak kemungkinan adalah pertanian mereka sendiri atau di sekitarnya, pabrik terdekat, ataupun melalui telepon genggam mereka.”

Pelatihan termasuk latihan interaktif dan diskusi di antara petani kecil untuk mendorong partisipasi. Kontennya dirancang dengan masukan dari petani kecil atas dasar kemampuan mereka untuk mengerti konteks dan kendala bahasa.

Muhammad Ramli, salah seorang petani kecil yang mengikuti pelatihan mengatakan, “Kini kami lebih mengerti apa yang menjadi praktik pertanian yang baik dan pentingnya pencatatan, berkat dari pelatihan 4-hari ini. Kami berharap kami dapat terus menerapkan apa yang telah kami pelajari agar dapat mengakses peluang sosial dan ekonomi yang lebih baik sambil hidup selaras dengan lingkungan.“ Ini bukan pelatihan pertama. STA telah bekerja sama dengan Pelatih Utama STA global untuk menyebarluaskan pengetahuan tentang penanaman berkelanjutan sejak akhir tahun 2019. Hingga April 2021, mereka telah berhasil melatih total gabungan 7.456 petani kecil, manajer kelompok dan pelatih komunitas secara global.

Sejalan dengan Strategi Petani Kecil RSPO, tujuan STA adalah untuk meningkatkan mata pencaharian petani kecil dan memungkinkan mereka untuk bertahan hidup serta berkembang dengan mengurangi jumlah bantuan eksternal. “Program mata pencaharian petani kecil kami melampaui sertifikasi. Sementara pelatihan menjembatani kesenjangan pengetahuan dan jalur menuju sertifikasi, yang lebih penting adalah menjadikan penanaman kelapa sawit berkelanjutan sebuah norma. Ini kami percayai, akan bekontribusi secara signifikan untuk meningkatkan mata pencaharian petani kecil” menurut Kertijah Abd Kadir, Manajer Program Mata Pencaharian Petani Kecil. Akademi Pelatihan Petani Kecil (Smallholder Training Academy / STA), sebuah inisiatif dari Kelompok Minyak Kelapa Sawit Berkelanjutan (Roundtable of Sustainable Palm Oil / RSPO), merupakan platform pelatihan bagi petani kecil secara global untuk mengakses pengetahuan dan pelatihan berkualitas tinggi guna membangun kapasitas mereka untuk mencapai mata pencaharian yang berkelanjutan.

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REGIONAL NEWS

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Palm Oil Today Indonesia

July - September 2021

INDONESIA BELUM MEMUTUSKAN APAKAH AKAN MEREVISI BEA CUKAI EKSPORT MINYAK KELAPA SAWIT, KATA PEJABAT

INDONESIA BELUM MEMUTUSKAN APAKAH AKAN MEREVISI BEA CUKAI EKSPORT MINYAK KELAPA SAWIT, KATA PEJABAT Tandan buah segar (fresh fruit bunch / FFB) siap untuk dikirimkan ke pabrik Fresh fruit bunch (FFB) getting ready to be sent to the mill

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ihak berwenang Indonesia belum memutuskan apakah akan memotong bea cukai ekspor minyak kelapa sawit mentah (crude palm oil / CPO) mereka, tiga pejabat mengatakan kepada Reuters karena bea cukai mereka tetap pada tingkatan tertinggi selama lima bulan berturu-turut, menekan permintaan. Indonesia, produsen terbesar minyak nabati di dunia, meningkatkan bea cukai ekspor CPO tahun lalu untuk menghasilkan dana bagi program bahan bakar hayati berbasis kelapa sawit-nya yang ambisius dan skema penanaman kembali bagi petani kecil, dengan mengorbankan permintaan.

“Hal ini masih sedang didiskusikan … bea cukai ekspor tersebut perlu ditinjau,” kata Joko Supriyono, anggota dewan pengawas BPDP, badan pemerintah yang bertanggung jawab atas program minyak kelapa sawit bersubsidi, kepada Reuters. “[Kami perlu] mempertimbangkan dinamika pasar tetapi juga mendukung keberlanjutan program bahan bakar hayati dan program penanaman kembali,” tambahnya.

Musdhalifah Machmud, wakil menteri pangan dan pertanian, mengatakan kepada Reuters bahwa pihak berwenang secara rutin meninjau bea cukai, tetapi belum ada keputusan mengenai pemotongan cukai. Abdul Rochim, direktur jenderal kementerian perindustrian mengatakan bahwa permasalahan ini sedang diperdebatkan namun belum ditentukan. Bea cukai telah dinaikkan dari tarif tetap 55 Dolar Amerika per ton menjadi sistem progresif yang bergantung pada harga di antara 55 – 255 Dolar Amerika per ton. Untuk bulan Juni, tarifnya ditetapkan di angka 255 Dolar Amerika untuk bulan kelima berturut-turut. Analis, pedagang dan kelompok perdagangan telah memperingatkan kalau tarif tinggi akan berdampak pada permintaan minyak serbaguna karena konsumen akan mencari alternatif yang lebih murah, sementara para petani mengatakan bahwa bea cukai yang lebih tinggi menurunkan harga tandan buah segar mereka. Namun kebijakan bahan bakar hayati Indonesia, yang mewajibkan solar untuk dicampur dengan 30% kandungan hayati dari kelapa sawit, telah membantu negeri tersebut mengatasi kelebihan pasokan kelapa sawit dan telah mendukung harga. Kelompok industri sektor hilir menunjukkan dukungan untuk bea cukai yang lebih tinggi bagi minyak kelapa sawit, yang banyak ditemukan pada produk konsumen, mengatakan bahwa hal itu menjamin pasokan dan pengiriman minyak kelapa sawit dengan nilai tambah yang lebih tinggi. Ekspor CPO Indonesia meningkat 18,7% pada bulan Maret dibandingkan dengan tahun lalu, menurut laporan asosiasi minyak kelapa sawit negeri tersebut, GAPKI. GAPKI belum merilis data untuk bulan-bulan berikutnya.

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INDONESIA YET TO DECIDE ON WHETHER TO REVISE PALM OIL EXPORT LEVY, SAY OFFICIALS Indonesian authorities have yet to decide on whether to cut their crude palm oil (CPO) export levy, three officials told Reuters as the levies remained at their highest for five months in a row, hurting demand. Indonesia, the world’s top producer of the edible oil, raised CPO export levies last year to generate funds for its ambitious palm-based biodiesel program and smallholder farmer replanting scheme, at the expense of demand. “It is still being discussed ... the export levy needs a review,” Joko Supriyono, a member of the supervisory board of BPDP, the government body in charge of subsidizing palm oil programs, told Reuters. “[We need to] consider market dynamics but also sustainably support the biodiesel program and replanting program,” he added.

Musdhalifah Machmud, deputy minister of food and agriculture, told Reuters that authorities routinely review the levy but no decisions about cutting levies have been made yet. Abdul Rochim, director general of the industry ministry said the issue was being debated but nothing had been decided. The levy was raised from a flat rate of US$55 per ton to a price-dependent, progressive system of US$55-US$255 per ton. For June, it was set at US$255 for the fifth successive month. Analysts, traders and trade groups have warned that higher tariffs could impact demand for the versatile oil as consumers look at cheaper alternatives, while farmers say that higher levies lower prices for their fresh fruit bunches. But Indonesia’s biodiesel policy, where it is mandatory for diesel to be blended with 30% bio content from palm, has helped the country sop up excess supply of palm and has supported prices. Downstream sector industry groups showed support for a higher levy for palm oil, which is widely found in consumer products, saying it guaranteed supply and higher value-added palm oil shipments. Indonesia’s CPO exports rose 18.7% in March year-on-year, the country’s palm oil association (GAPKI) reported last month. GAPKI has not released data for the subsequent months.

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PERKEBUNAN KELAPA SAWIT DI INDONESIA DI DESAK UNTUK MEMPERKETAT PEMBATASAN COVID-19 SAAT INFEKSI MENINGKAT

Buruh Perkebunan Saat Bekerja Plantation Workers At work

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abungan Pengusaha Kelapa Sawit Indonesia (GAPKI) mendesak perkebunan kelapa sawit untuk memperketat protokol COVID-19 di provinsi penghasil minyak kelapa sawit terbesar dalam negeri, Riau, setelah lonjakan angka infeksi di daerah tersebut, kata seorang pejabat di instansi industri tersebut.

Negara Asia Tenggara tersebut merupakan produsen terbesar minyak kelapa sawit di dunia, digunakan dalam berbagai keperluan, seperti sabun hingga es krim, di mana nilai ekspor pada tahun 2020 mencapai 23 milyar Dolar Amerika (30 milyar Dolar Singapura).

Riau terletak di Pulau Sumatera dan menyumbang 3,38 juta hektar, atau sekitar seperlima dari 16,38 juta hektar lahan perkebunan kelapa sawit dalam negeri. Provinsi tersebut telah melihat lonjakan infeksi coronavirus dalam beberapa minggu terakhir, dilaporkan sekitar 522 kasus per hari sejak 16 Mei, dan merupakah salah satu provinsi yang terdampak parah. “Ada peningkatan kasus di sini (perkebunan kelapa sawit) dengan protokol yang longgar, meskipun mereka beroperasi secara normal,” kata Jatmiko Sentosa, kepala GAPKI cabang Riau, kepada Reuters.

Beberapa perkebunan telah mengadopsi kebijakan sejak awal pandemi, termasuk pengujian COVID-19 dan tidak mengizinkan pekerja meninggalkan perkebunan, tetapi mereka tidak selalu distandardisasi atau ditegakkan dengan cara yang sama, kata Jatmiko. “Dengan meningkatnya kasus, kami menyusun dan meberikan protokol yang lebih terperinci, yang akan kami imbau agar semua anggota dapat mengikuti,” katanya, mencatat bahwa kebijakan seperti itu seharusnya tidak mempengaruhi hasil perkebunan.

Petani telah didorong oleh harga minyak kelapa sawit yang tinggi untuk meningkatkan produksi, sehingga lebih penting untuk menghindari lonjakan infeksi, kata Jatmiko. “Jika ada karyawan yang terpapar, produksi akan terganggu. Mereka tidak dapaat mengambil keuntungan dari momen harga yang tinggi ini,” katanya.

Ahli epidemiologi Wildan Asfan Hasibuan, seorang penasihat gugus tugas COVID-19 Riau, mengatakan bahwa wabah di perkebunan seharusnya lebih mudah dibendung daripada di daerah perkotaan.

“Masalah terbesar kami adalah di kota-kota…. Di daerah pedesaan relatif lebih aman,” katanya. Indonesia telah menderita wabah virus corona terburuk di Asia Tenggara, melaporkan 1,87 juta infeksi dan 51.992 kematian.

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INDONESIAN OIL PALM PLANTATIONS URGED TO TIGHTEN COVID-19 CURBS AS INFECTIONS CLIMB The Indonesian palm oil association (GAPKI) is urging oil palm plantations to tighten COVID-19 protocols in the country’s top-producing province of Riau after a surge in infections in the area, an official at the industry body said.

The South-east Asian country is the world’s top producer of palm oil, used in everything from soap to ice cream and fuel, with exports in 2020 estimated at about US$23 billion (S$30 billion).

Riau is located on Sumatra Island and accounts for 3.38 million hectares, or about a fifth of the country’s 16.38 million hectares of oil palm plantations. The province has seen a surge in coronavirus infections in recent weeks, reporting an average of around 522 cases per day since May 16, and ranking among the worst-hit provinces.

“There has been an increase in cases in these (palm plantations) with loose protocols, though they are operating normally,” Mr. Jatmiko Sentosa, head of GAPKI’s Riau chapter, told Reuters.

Some plantations had already adopted measures since the beginning of the pandemic, including COVID-19 testing and not allowing workers to leave the plantation, but they were not always standardized or enforced in the same way, Mr. Jatmiko said. “With cases increasing, we are compiling and providing detailed health protocol referrals, which we will urge all members to refer to,” he said, noting that such measures should not affect the output of plantations.

Farmers had been encouraged by high palm oil prices to ramp up production, making it more crucial to avoid a spike in infections, Mr. Jatmiko said. “If employees are exposed, production is disrupted.

They cannot take advantage of this good price moment,” he said.

Epidemiologist Wildan Asfan Hasibuan, an adviser for the Riau COVID-19 task force, said outbreaks in plantations should be easier to contain than in urban areas. “Our biggest problem is in the cities…. in rural areas, it’s relatively safer,” he said. Indonesia has suffered the worst coronavirus outbreak in South-east Asia, reporting 1.87 million infections and 51,992 deaths.

Palm Oil Today Indonesia

July - September 2021

REGIONAL NEWS

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KLK AKAN MENGAMBIL ALIH PERKEBUNAN IJM SENILAI 1,5 MILYAR RINGGIT MALAYSIA

KLK memiliki total area yang tertanami seluas 223.964 hektar di seluruh Malaysia, Indonesia dan Liberia dan akan menambahkan lahan seluas 60.966 hektar di Indonesia dan Malaysia setelah akuisisi. (gambar IJM) KLK has a total planted area of 223,964ha across Malaysia, Indonesia and Liberia and could add another 60,966ha across Malaysia and Indonesia with the acquisition. (IJM pic)

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aksasa kelapa sawit Malaysia Kuala Lumpur Kepong (KLK) Bhd telah mengakuisisi seluruh saham IJM Corporation Bhd senilai 1,53 milyar Ringgit Malaysia (371,72 juta Dolar Amerika), kata IJM Corp. Dalam pengajuan Bursa, IJM Corp mengatakan bahwa mereka telah menerima surat dari KLK, salah satu perkebunan kelapa sawit terbesar dalam negeri, menawarkan untuk mengakuisi 56,2% kepemilikan saham pada harga 3,10 Ringgit Malaysia per lembar. Grup konstruksi tersebut mengatakan pada prinsipnya telah setuju untuk menyelesaikan persyaratan akuisisi dengan KLK. “Setelah mempertimbangkan manfaat penawaran, pada prinsipnya dewa telah setuju untuk menyelesaikan syarat dan kondisit dengan KLK untuk pelaksanaan perjanjian jual beli,” katanya.

KLK, IJM Corp dan IJM Plantations telah meminta penghentian perdagangan. Potensi pelepasan divisi perkebunan IJM Corp datang pada waktu yang tepat, memanfaatkan siklus naik minyak kelapa sawit mentah untuk mendapatkan harga yang lebih tinggi, kata analis MIDF Research dalam sebuah catatan. Tawaran tersebut, sebuah premi 26% dari harga perdagangan saham terakhir IJM Plantations pada haraga 2,46 Ringgit Malaysia, memberi nilai produsen minyak kelapa sawit tersbut pada 2,73 milyar Ringgit Malaysia.

Saham IJM Plantations telah meningkat 35% tahun ini, memberikan kapitalisasi pasar senilai 2,16 milyar Ringgit Malaysia. Perusahaan tersebut mencatatkan keuntungan di tahun buku 2021 tetapi mengalami kerugian di dua tahun buku sebelumnya.

Saham KLK tealah menurun 8,1% sejak awal tahun. KLK memiliki total luas lahan yang ditanami sebesar 223.946 hektar di seluruh Malaysia, Indonesia dan Liberia. Mengakuisisi IJM Plantation, dengan total area yang ditanami seluas 60.966 hektar di Malaysia dan Indonesia, akan memperluas area yang ditanami KLK sekitar 27% dan meningkatkan hasil minyak kelapa sawitnya. Kesepakatan itu juga akan memberikan IJM Corp, yang lebih banyak berurusan dengan konstruksi, properti dan infrastruktur, kesempatan untuk memperkuat neracanya untuk melakukan proyek konstruksi dan infrastruktur mega, kata analis Khoo.

KLK SET TO TAKE OVER IJM PLANTATIONS FOR RM 1.5BIL

Malaysian palm oil giant Kuala Lumpur Kepong (KLK) Bhd has proposed to acquire IJM Corporation Bhd’s entire stake in IJM Plantations Bhd for RM1.53 billion (US$371.72 million), IJM Corp said.

In a Bursa filing, IJM Corp said it has received a letter from KLK, one of the largest palm oil planters in the country, offering to acquire its 56.2% equity holding at RM3.10 per share. The construction group said it has agreed in principle to finalise terms of the proposed acquisition with KLK. “After having deliberated on the merits of the offer, the board is in principle agreeable to finalise the terms and conditions with KLK for the execution of the sale and purchase agreement,” it said.

KLK, IJM Corp and IJM Plantations had requested for a trading suspension. IJM Corp’s potential disposal of its plantation division comes at an opportune time, capitalising on the crude palm oil upcycle to fetch a higher valuation, MIDF Research analyst Khoo Zhen Ye said in a note. The offer, a 26% premium to IJM Plantations’ last traded share price of RM2.46, values the palm oil producer at RM2.73 billion. Shares in IJM Plantations have risen 35% this year, giving it a market capitalisation of RM2.16 billion. The firm posted record profit in its 2021 financial year but was loss-making in the previous two financial years.

KLK’s shares have declined 8.1% since the start of this year.

KLK has a total planted area of 223,964ha across Malaysia, Indonesia and Liberia. Acquiring IJM Plantation, which has a total planted area of 60,966ha across Malaysia and Indonesia, could expand KLK’s planted area by around 27% and raise its palm oil production.

The deal will also give IJM Corp, which mainly deals with construction, property and infrastructure, an opportunity to strengthen its balance sheet in order to undertake mega construction and infrastructure projects, analyst Khoo said.

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WORLD NEWS

POTENSI LARANGAN MINYAK KELAPA SAWIT, PRODUK SARUNG TANGAN OLEH KANADA TIDAK BERDASAR

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kspor minyak kelapa sawit dan sarung tangan Malaysia akan mengalami dampak minimal apabila Kanada memutuskan untuk melarang impor produk tersebut atas tuduhan kerja paksa di industri tersebut. Pakar industri MR Chandran mengatakan bahwa Kanada bukanlah pasar yang besar bagi industri minyak kelapa sawit Malaysia yang dapat dialihkan untuk penggunaan domestik maupun pasar ekspor yang baru atau yang sudah ada. “Mereka belum melakukan apa-apa untuk saat ini. Saya pikir Kanada sedang mencoba mengikuti apa yang telah dilakukan oleh Amerika Serikat. Bea Cukai dan Perlindungan Perbatasan (Customs and Border Protection / CBP) Amerika Serikat melarang Sime Darby Plantation Bhd dan FGV Holdings Bhd tahun lalu. “Namun, tidak ada bukti yang membuktikan tuduhan tersebut hingga saat ini, di mana hal itu sangat konyol. Sime Darby Plantation memiliki beberapa sertifikasi internasional seperti Kelompok Minyak Kelapa Sawit Berkelanjutan (Roundtable on Sustainable Palm Oil), jadi apa dasarnya?” katanya pada The Malaysian Reserve (TMR).

Reuters melaporkan pada minggu lalu bahwa Kanada sedang menginvestigasi tuduhan kerja paksa di industri minyak kelapa sawit dan sarung tangan Malaysia. Program Tenaga Kerja dari Ketenagakerjaan dan Pengembangan Sosial Kanada secara aktif meneliti tuduhan kerja paksa di beberapa negara dan sektor, termasuk manufaktur minyak kelapa sawit dan sarung tangan di Malaysia. Perusahaan Malaysia, yang mencakup beberapa produsen minyak kelapa sawit dan sarung tangan karet terbesar di dunia, telah menghadapi peningkatan pengawasan dalam beberapa tahun terakhir akibat laporan pelanggaran tenaga kerja dan perusakan hutan tropis. Chandran mempertanyakan bagaimana Amerika Serikat dan Kanada bisa datang dengan tuduhan terkait Perintah Pengendalian Gerakan (Movement Control Orders) yang telah diterapkan sejak tanggal 18 Maret 2020, untuk menghadang penyebaran pandemi Covid-19. “Bagaimana mereka bisa turun ke lapangan dan melakukan audit? Mungkin melalui wawancara telepon atau ada yang komplain. Apa pembenarannya, mana buktinya?” Tambahnya.

Menurut data yang tersedia dari pemerintah Kanada, Malaysia mengekspor minyak kelapa sawit senilai 282 juta Ringgit Malaysia dan sarung tangan karet senilai 1,31 milyar Ringgit Malaysia ke Kanada pada tahun 2020. Chandran tidak khawatir tindakan tersebut bisa menyebar ke negara lain, terutama negara-negara Eropa.

“Uni Eropa memiliki peraturan dan regulasinya sendiri. Kedua Malaysia dan Indonesia memiliki banyak investasi di Eropa – dalam sektor hilir menciptakan banyak lowongan pekerjaan bagi Eropa. Jadi, saya tidak berpikir Eropa akan mengambil tindakan drastis seperti itu,” katanya. CBP Amerika Serikat telah menghentikan dan / atau menyita sarung tangan buatan Malaysia di masa lalu atas dasar indikasi kerja paksa, seperti jam kerja yang berlebihan, kondisi hidup dan kerja yang kejam, lilitan hutang, intimidasi, kekerasan fisik dan seksual, serta penahanan dokumen identitas diri oleh perusahaan.

Perusahaan yang terkena sanksi termasuk Top Glove Corp Bhd, Sime Darby Plantation dan FGV Holdings.

Seorang analis dari broker lokal mengatakan tindakan Kanada akan berdampak minimal karena Kanada bukan merupakan pasar utama bagi empat perusahaan besar sarung tangan lokal. “Negara-negara Barat mengangkat masalah kerja paksa di perushaan Malaysia bukanlah sesuatu yang baru. Saya sangat yakin bahwa perusahaan kami telah melakukan pekerjaan yang baik dengan mengadopsi pedoman ketenagakerjaan. “Semua dampak dari tindakan tersebut telah diperhitungkan dalam harga saham perusahaan sarung tangan dan perkebunan,” katanya kepada TMR.

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Palm Oil Today Indonesia

July - September 2021

POTENTIAL BAN ON PALM OIL, GLOVE PRODUCTS BY CANADA IS UNFOUNDED

Kanada sedang menyelidiki tuduhan kerja paksa di industri minyak kelapa sawit dan sarung tangan di Malaysia Canada is investigating allegations of forced labour in Malaysia’s palm oil and glove manufacturing industries

Malaysia’s palm oil and glove exports will suffer a minimal impact should Canada decide to ban the import of the products following allegations of forced labour practices in the industries. Industry expert MR Chandran said Canada is not a very big market for Malaysian palm oil which can be diverted to domestic use or other new or existing export markets. “They have not done anything yet at the moment. I think Canada is trying to follow what the US has done.

The US Customs and Border Protection (CBP) banned Sime Darby Plantation Bhd and FGV Holdings Bhd last year. “However, there is no evidence to prove the allegations until now which is ridiculous.

Sime Darby Plantation has a few international certifications such as the Roundtable on Sustainable Palm Oil, so what is the basis?” he told The Malaysian Reserve (TMR).

Reuters reported last week that Canada is investigating allegations of forced labour in Malaysia’s palm oil and glove manufacturing industries. Employment and Social Development Canada’s Labour Programme was actively researching a number of forced labour allegations in different countries and sectors, including palm oil and glove manufacturing in Malaysia. Malaysian firms, which include some of the world’s biggest palm oil and rubber glove producers, have faced increasing scrutiny in recent years over reports of labour abuses and destruction of tropical jungles. Chandran questioned how the US and Canada could come with allegations concerning Movement Control Orders that have been in place since March 18, 2020, to combat the spread of the Covid-19 pandemic.

“How can they go to the ground and make an audit? Probably, it is only done through phone interviews or somebody has complained.

What is the justification, where is the proof?” he added.

According to open data available from Canadian government, Malaysia exported some RM282 million worth of palm oil and RM1.31 billion worth of rubber gloves to the country in 2020.

Chandran did not express concern that such action could spread to other countries, especially European countries. “The European Union has its own rules and regulations. Both Malaysia and Indonesia have a lot of investment in Europe — in the downstream space which creates a lot of jobs for European. So, I don’t think Europe will take such a drastic measure,” he said. The US CBP has stopped and/ or confiscated Malaysian-made gloves in the past on the ground of forced labour indicators, such as excessive hours, abusive living and working conditions, debt bondage, intimidation, physical and sexual violence and the retention of identity documents by companies. The sanctioned companies include Top Glove Corp Bhd, Sime Darby Plantation and FGV Holdings.

An analyst at a local brokerage said the Canadian action will have a minimal impact because Canada is not a major market for the big four local glove companies. “Western countries raising forced labour issues in Malaysian companies is not something new.

I strongly believe our companies have done a good job to adopt labour guidelines. “All the impact of such action has been factored into the share prices of the glove and plantation companies,” he told TMR.

Palm Oil Today Indonesia

July - September 2021

WORLD NEWS

15

Kantor Pusat WTO Headquarters Of WTO

WTO MENYETUJUI PERMINTAAN DARI KUALA LUMPUR UNTUK MEMBENTUK PANEL YANG MENGKAJI HUKUM UNI EROPA YANG MEMBATASI PENGGUNAAN BAHAN BAKAR HAYATI BERBASIS MINYAK KELAPA SAWIT

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ENEWA: Organisasi Perdagangan Dunia (World Trade Organisation / WTO) telah menyetujui permintaan dari Kuala Lumpur untuk membentuk panel yang mengkaji hukum Uni Eropa yang membatasi penggunaan bahan bakar hayati berbasis minyak kelapa sawit, kata pemerintah Malaysia dan sumber perdagangan yang berbasis di Jenewa pada hari Senin. Di bawah arahan UE terkait arahan terbarukan, bahan bakar berbasis minyak kelapa sawit akan dihapus pada tahun 2030, karena minyak kelapa sawit telah diklasiikasikan oleh blok tersebut sebagai penyebab deforestasi yang berlebihan dan tidak dapat lagi dianggap sebagai bahan bakar transportasi terbarukan. Produsen minyak kelapa sawit mengatakan bawah beberapa anggota UE menyatakan kalau mereka sudah mulai menghapusnya sebelum tenggat waktu.

Malaysia, produsen minyak kelapa sawit terbesar kedua di dunia, dan saingan terbesar Indonesia, dalam beberapa tahun terakhir telah menyampaikan beberapa kasus kepada WTO, mengatakan bahwa tindakan UE diskriminatif. “Malaysia akan tetap berkomitmen untuk melakukan tindakan hukum terhadap UE,” kata Menteri Komoditas Malaysia Datuk Dr Mohd Khairuddin Aman Razali. Malaysia dan Indonesia bersama-sama memproduksi 85% dari hasil minyak kelapa sawit di dunia. Dalam sebuah pernyataan, Mohd Khairuddin mengatakan bahwa WTO pada hari Jumat telah menyetujui permintaan kedua Malaysia untuk membentuk sebuah panel. Permohonan tersebut dibuat setelah konsultasi dengan UE gagal menghasilkan solusi pada tanggal 17 Maret lalu, katanya. Sumber perdagangan, yang mengikuti pertemuan pada hari Jumat, memastikan keputusan untuk membentuk panel. Sumber tersebut menolak disebutkan namanya karena sensitivitas masalah ini. Dalam sebuah pertemuan tertutup itu, seorang perwakilan UE mengatakan langkah-langkahnya sepenuhnya dibenarkan dan menyatakan keyakinan akan menang dalam persidangan, menurut sumber tersebut. Panel WTO biasanya berunding selama sekitar enam bulan sebelum mengirimkan temuan mereka kepada para anggota. Keputusan apa pun dapat diajukan banding.

WTO AGREED TO A REQUEST FROM KUALA LUMPUR TO ESTABLISH A PANEL EXAMINING A EUROPEAN UNION LAW THAT RESTRICTS THE USE OF PALM OIL BASED BIOFUELS GENEVA: The World Trade Organisation (WTO) agreed to a request from Kuala Lumpur to establish a panel examining a European Union law that restricts the use of palm oil-based biofuels, Malaysia’s government and a Geneva-based trade source said on Monday. Under the EU’s renewable energy directive, palm oil-based fuels are to be phased out by 2030, since palm oil has been classified by the bloc as resulting in excessive deforestation and can no longer be considered a renewable transport fuel.

Palm oil producers say some EU member states have started to phase it out ahead of the deadline.

Malaysia, the world’s second-largest palm oil producer, and bigger rival Indonesia, have in recent years launched separate cases with the WTO, saying the EU measures are discriminatory.

“Malaysia will remain committed to pursuing legal action against the EU,” Malaysia’s Commodities Minister Datuk Dr Mohd Khairuddin Aman Razali said. Malaysia and Indonesia together produce 85% of the world’s palm oil. In a statement, Mohd Khairuddin said the WTO on Friday acceded to a second request from Malaysia that a panel be set up. The application was made since consultations with the EU on March 17 failed to yield a solution, he said. The trade source, who attended the meeting on Friday, confirmed the decision to set up the panel. The source declined to be named because of the sensitivity of the matter. At the closed-door meeting, an EU representative said its measures were fully justified and expressed confidence in prevailing during the proceedings, according to the source. WTO panels typically deliberate for about six months before sending their findings to members. Any decision can be appealed.

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ANNOUNCEMENTS

Palm Oil Today Indonesia

July - September 2021

SCHNEIDER ELECTRIC RAIH PENGHARGAAN CORPORATE KNIGHTS SEBAGAI PERUSAHAAN PALING BERKELANJUTAN DI DUNIA

• Schneider menempati peringkat pertama dari lebih dari 8.000 perusahaan yang dinilai untuk 2021 Global 100 • Dari sebelumnya menempati posisi ke-29 di 2020, Schneider Electric membuktikan perkembangan dan konsistensinya terhadap aspek keberlanjutan • Penghargaan ini diperoleh bertepatan dengan diumumkannya percepatan program keberlanjutan oleh Schneider Jakarta, 27 Januari 2021 - Schneider Electric, pemimpin dalam transformasi digital untuk pengelolaan energi dan otomasi, memperoleh pengakuan sebagai perusahaan paling berkelanjutan di dunia, dalam daftar tahunan bergengsi yang dirilis oleh Corporate Knights, perusahaan media dan penelitian yang berfokus pada kinerja keberlanjutan (sustainability) perusahaan.

“Kami merasa terhormat dan berterima kasih diberikan kepercayaan untuk menempati peringkat pertama oleh Corporate Knights,” kata Jean-Pascal Tricoire, Chairman and Chief Executive Officer Schneider Electric. “Ini menjadi motivasi bagi tim dan mitra kami, dan sebuah pengakuan besar atas lebih dari 15 tahun komitmen untuk membuat perusahaan kami dan dunia menjadi lebih hijau dan lebih inklusif. Keberlanjutan adalah sebuah perjalanan yang kami capai berkat partisipasi dari karyawan, mitra, pemasok, pelanggan, dan komunitas tempat kami beroperasi.

Pengakuan ini juga menjadi pencapaian untuk Anda semua.”

Menempati posisi nomor satu di peringkat Corporate Knights’ 2021 Global 100 Most Sustainable Corporations menandai lompatan besar bagi Schneider Electric yang sebelumnya berada di posisi ke-29 sekaligus menjadi pengakuan tertinggi atas komitmen Schneider terhadap isu lingkungan, sosial dan tata kelola perusahaan (ESG). “Terdapat dua sisi dalam keberlanjutan,” kata Gilles Vermot Desroches, Sustainability Senior VP Schneider Electric. “Kami memimpin dengan menjadi contoh dalam operasional dan ekosistem kami sendiri, dan kami bekerja dengan menjadi bagian dari solusi bagi pelanggan kami. Keberlanjutan meningkatkan kinerja, inovasi, dan daya tarik kami sebagai tempat kerja. Hal ini tentunya menciptakan suatu nilai berbeda." Pemeringkatan Corporate Knights 2021 didasarkan pada penilaian terhadap 8.080 perusahaan dengan pendapatan lebih dari US$ 1 Miliar. Indikator kinerja mencakup evaluasi terhadap jumlah energi terbarukan dan limbah yang dihasilkan perusahaan. Tahun ini, mereka juga memasukkan indikator baru terkait cuti sakit, keberagaman ras di level eksekutif dan dewan direksi, dan investasi bersih.

Perusahaan yang berbasis di Toronto ini menekankan pada komitmen Schneider yang konsisten dalam mengembangkan produk dan layanan yang membantu pelanggan mengelola kebutuhan energi mereka dengan lebih efisien dan aman. “Sejak beberapa dekade terakhir, Schneider telah merubah fokusnya ke data center penyimpanan (storage) dan sumber daya energi

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terdistribusi lainnya serta solusi cerdas yang memajukan elektrifikasi, efisiensi energi, dan pembaruan. Saat ini perusahaan memperoleh 70% pendapatannya dari, dan mengarahkan 73% investasinya ke solusi yang berkelanjutan,” kata Toby Heaps, CEO of Corporate Knights. “Schneider Electric juga memiliki kinerja yang sangat baik dalam hal keberagaman ras dan gender serta dalam produktivitas dan keamanan dari sumber daya.” Sebelumnya Schneider Electric tergolong perusahaan yang baru dalam tahap awal terhadap penerapan ESG, namun Schneider telah menunjukkan kemajuan yang sangat cepat dan komitmen yang ambisius dalam satu setengah dekade terakhir. Akselerasi terbaru dari strategi keberlanjutannya, yang juga diumumkannya pada 25 Januari, melibatkan enam komitmen jangka panjang dan sebelas target konkret, yang akan dicapai pada tahun 2025. Bersama-sama, hal ini bertujuan untuk membantu Schneider, bisnis dan komunitas yang dilayaninya dan berinteraksi dengannya, untuk mengatasi perubahan iklim dan inklusi sosial.

TENTANG CORPORATE KNIGHTS :

Corporate Knights Inc. mencakup majalah terkait sustainable business Corporate Knights dan divisi penelitian yang mengategorikan peringkat dan peringkat produk keuangan berdasarkan kinerja keberlanjutan perusahaan.

TENTANG SCHNEIDER ELECTRIC : Tujuan Schneider adalah memberdayakan semua orang agar dapat memaksimalkan energi dan sumber daya, menjembatani kemajuan dan keberlanjutan bagi semua orang. Kami menyebutnya Life Is On. Misi kami adalah menjadi mitra digital Anda demi mencapai Keberlanjutan dan Efisiensi. Kami mendorong transformasi digital dengan mengintegrasikan teknologi energi dan proses terdepan di dunia, produk penghubung end-point ke cloud, kontrol, perangkat lunak dan layanan, di seluruh siklus hidup, sehingga memungkinkan manajemen perusahaan terintegrasi, untuk rumah, gedung, pusat data, infrastruktur dan industri.

Kami merupakan perusahaan global dengan pemahaman lokal.

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July - September 2021

THE INDONESIAN PALM OIL INDUSTRY ECONOMIC OUTLOOK FROM A SUPPLIER'S VIEWPOINT

Michael Kesuma

Head of Investor Relations PT Binasawit Agro - Sampoerna Agro

Susan Tricia, our Editor for Palm Oil Today Indonesia Magazine manage to have a quick interview with PT Binasawit Makmur (A subsidiary company of PT Sampoerna Agro Tbk), one of the Indonesian Palm Oil industry’s leading seedlings supplier, to discuss about the viability of the Indonesian Palm Oil industry during the pandemic and what to expect moving forward.

Could you share with us a bit about your experience in the palm oil industry and a simple background of your company to our readers?

PT Binasawit Makmur (PT BSM) is engaged in seed research and seed germination activities. Since 1994, it has evolved into a broad-based agronomics research and development center. Also in 1994, we obtained the License for Importing Oil Palm Seeds (DxD, TxP, and DxP variants) from Costa Rica. The Company conducts research and development as well as cultivation of oil palm seeds. These activities take place in two estates, Surya Adi and Mesuji, in Sumatera. Our facilities covering a total of 1,172 ha. Crafted using state-ofthe-art technologies, the Semi Clone subvariants’ superiority takes the form of higher yield level and homogeneity, even compared to their superior DxP Sriwijaya predecessors. All variants of the Company’s germinated seeds have been protected since 2008 by the Certificate of Crop Variant Protection issued by the Indonesian Ministry of Agriculture. Upon obtaining approval from the authorities, the Company since 2015 has started to market DxP Sriwijaya Semi Clones subvariant as well. Currently, the Company is actively producing 6 superior oil palm seed variants (including 6 subvariants Semi Clone), and marketed under the brand names of DxP Sriwijaya. These superior seeds are planted on the Company’s own estates and sold to external customers within Indonesia.

At the close of 2020, Sriwijaya seeds managed to command 13% market share, representing the second biggest within the industry. The Company is committed to continuing its superior seed research and development efforts, in order to bring about greater innovations and productivity in the years to come.

PT Binasawit Makmur is very established in the palm oil industry since 1994, what is the competitive edge you think you may have over your competitors?

Main differentiation of PT BSM is mainly in the form of diverse set of guineensis elite germplasm which originated from a credible and well recognized international research centre selection result, consisting of 225 Dura and 50 Pisifera from 7 different origins. One of our best Pisifera is Pisifera from Nigeria. Additionally, the company is actively engaged in a germplasm enrichment program by introducing genetic material from the centre of oil palm origin in West Africa and South America, as well as in collaboration with a credible palm oil company in South America to perform interspecific hybrid trial. Basically, PT BSM has performed a comprehensive breeding strategy combining the traditional strategy of reciprocal recurrent selection based, to a more recent tissue culture for advancing genetic material and the integrated molecular marker startegy for selection. All of these

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research activities, which include field trials, are conducted within our oil palm plantation concession in South Sumatera which is included in class 2 and class 3 of land suitability zone, these include areas which are regularly exposed to drought condition. Seed production system of PT BSM has been considered to be one of the best seed production system in Indonesia, in producing high quality and traceable germinated seeds, with a very strict quality control, certified with ISO 9001:2015, ISO 14001:2015, ISO 45001:2018. It is also supported

by R&D and Sustainability team who are committed to best agronomy practices with an accreditated ISO 17025:2017 analytical laboratory.

Indonesia is currently reputed to be the world’s largest palm oil industry, how do you think Indonesia was able to achieve this? And how was PT Bina Sawit Makmur involved during the early stages of the expansion of the palm oil industry?

Indonesia’s palm oil industry has, in the past few years, attracted the attention of the world community because of its rapid development, which has changed global competition over vegetable oil, and also because of a number of related social, economic, and environmental issue. The Indonesian palm oil industry has a long history as it has existed in the country since the colonial era. Indonesia’s palm oil industry began its rapid growth after the successful establishment of large national private plantations and the introduction of cooperation between oil palm farmers and corporations known as the nucleus estate and smallholders program. Through many smallholders schemes, the total area of oil palm plantation in Indonesia increased from about 300 thousand hectares in 1980 to 11.6 million hectares in 2016.

In 2006, Indonesia succeeded in replacing Malaysia as the world’s largest CPO producer and by 2016 Indonesia’s share reached 54% in the world’s CPO Production, while malaysia was in second position with a 32% share.

In 2020, the total oil palm plantation in Indonesia cover 16.38 million hectares in 2020. 40% of which were owned by the smallholders. PT BSM retains prominence as an oil palm germinated seed producer in Indonesia.

Our seeds are known for its superior oil content, low height increment, and high yield potential. Hence, contributing to sustainable development of palm oil industry in Indonesia. Additionally, other focus area include continuous innovation through our R&D Division which is responsible for creating and delivering innovative solutions in the field of agronomy, including in pest and

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July - September 2021

disease eradication and plant breeding. We maintain and enhance the Company’s competitiveness in areas of product superiority and quality. Efforts to support national distribution disease eradication and plant breeding. We maintain and enhance the Company’s competitiveness in areas of product superiority and quality. Efforts to support national distribution of superior oil palm seeds and the government’s program to rejuvenate smallholders’ plantations place PT BSM in a strategic position in ensuring access to superior variants thereby improving the nation’s quality, productivity, and operational efficiency sustainably.

Costings are a key concern during the pandemic, how have your clients responded during this difficult period? How do you mitigate their financial concerns?

The keyword is customer satisfaction. Understanding each customer’s background profile is crucial in providing it. PT BSM’s customers consist of corporation, smallholder under direct guidance of the Company, as well as independent farmers and smallholders registered under government replanting program (PSR). The company is commited to support the government replanting program. In doing so, PT BSM has a great connection with franchiser and smallholder through the PSR program. The company provides an incentive scheme to ensure successful PSR program.

2020 was a turbulent year, in your opinion, was the Indonesian palm oil industry severely affected? What do you expect to see in the industry between 2021 to 2022 citing recovery sentiments and what type of growth would PT Bina Sawit Makmur be expected to show? Would you also be seeing new expansion of plantations during this period? If yes, which areas would it be focused on?

2020 was indeed a turbulent year. on the other hand, a notable contributor to our resilient showing in 2020 was our seed business, whose sales almost doubled that of 2019 and was 50% higher than our target for 2020. This placed us as the second largest oil palm seed producer in Indonesia with approximately 13% market share of the industry volume, estimated at around 87 million units. Our success is partly due to deeper penetration into the smallholder replanting program that is currenlty one of industry highlights by the government. Like in 2020, we believe substantial growth prospect still remains for 2021-2022, as many plasma plantations in Indonesia have aged beyond 25 years old and needs replanting, thus benefiting from our superior seeds. We expect CPO prices to stay upbeat in 2021, supported by demand recovery as nations around the world stand united to fight off Covid-19 through mass vaccination distribution initiatives. The demand for CPO will remain strong in the future, fueled by the dual factor of ever-increasing global population and shrinking availability of arable land. Not only is CPO a highly versatile oil, but it is also unparalleled among vegetable oils in terms of efficiency of land use per volume produced. From about less than 10% through the 1960s, CPO now accounts for 35% of total world vegetable oil demand, which is slated to nearly double its current level to reach 310 million tons by 2050.

It is therefore reassuring to see that practices in the palm oil industry are becoming increasingly aligned with international standards. More plantations and producers globally are becoming certified. This will galvanize market support and confidence in the sustainability of this sector. We are also supportive of the Indonesian government’s initiatives to intensify palm oil research to help the country achieve the globally-ratified Sustainable Development Goals, and to boost its contribution towards ensuring the nation’s food security, energy sovereignty, and welfare.

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Your seedlings are considered premium, why do you think the Indonesian palm oil industry are willing to pay for better quality seedlings with a more reputable brand?

Actually, the seedling process makes up less than 10% to the production cost in general. However, its effect could have up to 50% of the production result. As we know, key requirements to oil palm best management practice are suitable land, fertilizer application, agronomy best practice, and last but not least, the genetic planting material. It must come from a good breeding program. Therefore, PT BSM places great emphasis in carrying out best effort in breeding process, seed production, seed distribution, until it is delivered to customer.

Can you give a final word of advice to the palm oil industry out there during this difficult period? What are the factors they should also be keeping a look out for?

The development of oil palm plantation around the world, in particular Indonesia, has led to an increase in global competition among vegetable oil producing crops. Oil palms are known to be the superior one with the highest productivity versus its peers with capability of producing significantly more oil per hectare basis. For this reason, various forms of unfair competition practices have been targeted against palm oil since the early 1980s. Hence, sustainable development is getting more attention within the industry which has paved the way for more sustainability principles as an inherent part of our operational activitites in palm oil industry. PT BSM as well as Sampoerna Agro Group has made significant efforts to undertake Good Agricultural Practices in ensuring proper and responsible plantation management within our estates. We strongly believe all of our peers should place sustainability as their top of mind which include boosting up their productivity. Hence, the industry will be more resilient during challenging period such as today.

Palm Oil Today Indonesia

July - September 2021

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PENGABAIAN NIGERIA TERHADAP KELAPA SAWIT MENEKAN KELAPA SAWIT TURUN DARI URUTAN GLOBAL

P

Grafik Produksi Minyak Kelapa Sawit Nigeria | Nigeria Palm Oil Production Chart

ada tahun 1950-an dan 1960-an, perkebunan kelapa sawit merupakan sektor utama di perekonomian Nigeria. Sektor tersebut menghasilkan sekitar 43 persen dari total produksi dunia. Nigeria dianggap sebagai pemimpin pasar minyak kelapa sawit dunia. Produksi minyak kelapa sawit melampaui konsumsi domestik, dengan kelebihan produksi diekspor ke pasar minyak kelapa sawit dunia. Namun, dalam beberapa dekade terakhir, negara tersebut telah menjadi importir minyak kelapa sawit karena kelalaian sektor tersebut. Hari ini, Nigeria memproduksi kurang dari dua persen hasil global. Data menunjukkan penurunan sektor tersebut di tengah kepopulerannya di tahun 1970-an, ketika lebih sedikit dana diberikan kepada petani, produsen dan peneliti.

Di negara bagian Edo, Akwa Ibom dan Ondo States, di mana perkebunan minyak kelapa sawit merupakan bagian dari kehidupan dan budaya karena ketersediaannya di wilayah tersebut, kebanyakan wanita dan pria yang terlibat dalam budidaya dan pengolahan buah sawit, yang diwawancarai, mengatakan bahwa produksi mereka telah berkurang karena kurangnya dukungan yang signifikan berupa pinjaman lunak hingga penyediaan bahan tanam yang layak serta perlengkapan lain yang diperlukan. Dengan populasi lebih dari 197 juta orang, Nigeria mengkonsumsi sekitar 3 juta metrik ton (MT) lemak dan minyak setiap tahun di mana minyak kelapa sawit menyumbangkan sekitar 45 persen dari total konsumsi di tahun 2018. Nigeria merupakan konsumen minyak kelapa sawit terbesar di Afrika dengan 1,34 juta MT di tahun 2018, menurut analis dari PriceWaterhouseCoopers (PWC), sebuah perusahaan audit internasional.

PELUANG YANG BELUM DIMANFAATKAN

Pemeriksaan tersebut juga telah mengungkapkan bahwa petani kelapa sawit di wilayah tersebut tidak memiliki akses subsidi maupun pinjaman lunak dari pemerintah federal meskipun minyak kelapa sawit termasuk di antara tanaman yang diamanatkan dalam Program Peminjam Jangkar (Anchor Borrowers’ Programme / ABP) pemerintah federal. Presiden Muhammadu Buhari pada bulan November 2015, meluncurkan ABP untuk menyediakan bantuan dan dana kepada petani kecil untuk mendorong produksi pertanian dan bagi negara untuk mengembalikan defisit pembayaran makanannya di neraca. Petani dalam naungan program ini termasuk yang membudidayakan serealia, kapas, akar dan umbi-umbian, tebu, tanaman pohon (kakao, karet, kelapa sawit, dan lain-lain), kacang-kacangan, tomat dan ternak. Pinjaman dicairkan melalui bank, lembaga keuangan pembangunan dan bank mikro, di mana semuanya diakui sebagai lembaga keuangan yang berpartisipasi.

Menurut pedoman program, setelah panen, petani yang mendapat manfaat diharapkan untuk membayar kembali pinjaman mereka dengan hasil panen, yang harus mencakup pokok pinjaman dan bunga, kepada ‘jangkar’ yang membayar uang tunai yang setara ke rekening petani. Ododo Olotu, 69, berasal dari Negara Bagian

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Delta, yang pindah ke Negara Bagian Ondo dalam upaya mencari pekerjaan yang lebih baik dalam perkebunan kelapa sawit 35 tahun yang lalu, mengatakan bahwa ia tidak pernah menerima subsidi pemerintah. Perkebungan dia luasnya sekitar 700 hektar di Benin tidak ditanami karena dia tidak memiliki dukungan keuangan yang bisa digunakan untuk penanaman. “Pemerintah tidak mendengarkan siapa pun, kami hanya mengelola sendiri untuk memberi makan anak kami dan membayar biaya sekolah mereka,” katanya.

“Ada uang dalam produksi minyak kelapa sawit, kakao dan jagung.

Seperti saya sekarang, jika pemerintah dapat memberikan bantuan 10 juta Naira dalam rekening saya, dan mengawasi saya, itu akan sangat membantu.” Juru bicara Bank ternama di Nigeria (CBN), Isaac Okoroafor, mengatkan bahwa sekitar 49,6 miliar Naira (12 juta Dolar Amerika) telah dibagikan melalui Fasilitas Pendukung Sektor Riil dan Skema Kredit Pertanian, bagi aktivitas rantai pasokan kelapa sawit. “Dengan Skema Investasi Agribisnis / Usaha Kecil dan Menengah, 1,5 miliar Naira (3,6 juta Dolar Amerika) telah dibagikan kepada 248 petani kelapa sawit dan pengolah kelapa sawit,” katanya dalam sebuah teks.

PRODUK UTAMA

Kelapa sawit merupakan sayuran yang dapat dimakan dengan nilai ekonomi yang beragam, mulai dari daunnya hingga tubuh pohon, yang kaya dengan lemak jenuh. Kelapa sawit disepakati umumnya berasal dari kawasan hutan hujan tropis Afrika Barat yang membentang melalui garis lintang Selatan Kamerun, Pantai Gading, Ghana, Liberia dan Nigeria, Sierra Leone, hingga ke wilayah khatulistiwa Angola. Terbentuknya perdagangan minyak kelapa sawit dari Afrika Barat terutama disebabkan oleh revolusi industri di Eropa.

Minyak kelapa sawit menjadi bahan baku utama untuk produksi sabun, dan karen meningkatnya permintaan sabun, maka dibutuhkan adanya ketersediaan minyak nabati yang cocok untuk produksinya, sehingga permintaan minyak kelapa sawit meningkat. Ketersediaannya di bagian selatan negara tersebut terutama di Negara Bagian Akwa Ibom sangat berkaitan dengan jenis tanah.

Menurut Usen Offiong, dosen senior di departemen ilmu tanah, Universitas Uyo, pohon kelapa sawit dapat beradaptasi pada jenis tanah yang berbeda namun yang paling cocok adalah tumbuh di lahan lembab dan berdrainase baik. “Pohon kelapa sawit tumbuh dengan baik di lingkungan yang menguntungkan, meskipun ia dapat beradaptasi pada jenis tanah yang berbeda, ia memerlukan tanah yang lembab, dalam dan berdrainase baik serta kaya dengan kandungan humus. Tanah berpasir, terutama di pesisir tidak cocok untuk budidaya kelapa sawit,” kata Usen. “Pohon kelapa sawit membutuhkan udara dan sinar matahari yang cukup, tanah liat yang berat dengan drainase yang buruk akan menyebabkan gangguan aerasi pada tanaman selama musim hujan,” tambahnya.

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KENDALA UTAMA - PAKAR

Billy Ghansah, koordinator pertanian, Perusahaan Kelapa Sawit Okomu, mengatakan bahwa ada sedikit ruang untuk ekspor ketika Nigeria merupakan net importir kelap sawit, ditambahkan juga bahwa negara tersebut hanya bisa mengekspor ketika ia mampu memproduksi cukup untuk melayani keperluan domestik. “Jangan lupa bahwa ada selisih besar antara produksi domestik dan konsumsi.

Dan jika anda tidak dapat memuaskan pasar lokal, maka tidak ada insentif bagi anda untuk mengeskpor,” katanya. Ia mengatakan bagi Nigeria untuk mengisi selisih yang ada dalam produksi minyak kelapa sawitnya, maka dibutuhkan untuk menanam 100.000 hektar kelapa sawit saat ini. Dia mengatakan bahwa strategi budidaya dasar kelapa sawit dikembangkan di Afrika, teteapi kami (Nigeria) tidak memanfaatkannya, dan Asia mengambil alih dan terus maju, sehingga orang berpikir bahwa mereka mengambil benihnya dari sini.

“Mereka tidak,” tambahnya. Dia menjelaskan bahwa mereka (Asia) menggunakan apa yang mereka miliki dan diimporvisasi. Dia mengatakan bahwa perkembangan terbesar adalah pengembangan benih (kultivar) untuk produksi, yang menyumbang peningkatan terbesar dalam hasil panen. Dengan cara yang sama, pelaksana tugas direktur eksekutif Lembaga Penelitian Minyak Kelapa Sawit Nigeria (Nigerian Institute for Oil Palm Research / NIFOR), Celestine Ikuenobe mengatakan bahwa tantangan utama yang mengganggu sektor kelapa sawit adalah rendahnya tingkat penanaman dan akuisisi lahan di wilayah tropis negara di mana tanaman dapat tumbuh subur dan berbunga dengan baik. Dia mengatakan bahwa mereka telah mendesak petani untuk menggantikan tanaman lama dengan bibit yang lebih baik untuk meningkatkan produktivitas.

Lebih dari itu, direktur utama Presco Plc, Felix Nwabuko, mengatakan terlepas dari potensi yang dimiliki oleh rantai nilai kelapa

Palm Oil Today Indonesia

July - September 2021

sawit, semuanya menderita akibat kelalaian, seperti halnya sektor pertanian Nigeria secara keseluruhan. Sebagai sumber makanan, ia juga memiliki potensi besar untuk mengatasi ketahanan pangan karena populasi yang besar dan bertumbuh di wilayah Afrika Barat.

“Dan itulah yang mendorong program ekspansi kami,” tambahnya.

Memperhatikan bahwa kekurangan Nigeria adalah keinginan untuk secara efektif dan efisien menindaklanjuti kebijakan sejak dibuat hingga eksekusi.

BEKERJA MAJU

Tuan Nwabuko mengatakan keinginan dia adalah untuk melihat minat untuk mengembangkan rantai nilai berkelanjutan kelapa sawit, dan bukan hanya untuk mengambil keuntungan yang cepat darinya.

“Kelapa sawit bukanlah tempat di mana anda dapat mendapatkan keuntungan cepat, ia membutuhkan kesabaran. Sejak dari hari anda memulai, sebelum anda mulai meraup keuntungan, akan membutuhkan beberapa tahun jika anda adalah pendatang baru.” Ia mengatakan yang berminat, dan pemerintah juga, harus menyadari apa yang dibutuhkan untuk membuatnya berhasil, sementara menegaskan kembali bahhkan setelah meluncurkan Kebijakan Minyak Kelapa Sawit Nasional Nigeria, yang membahas masalah itu, “Mari mulai mengimplementasinya,” katanya. “Mari kita miliki platform untuk mendorong kebijakan tersebut dan karena itu sebagian dari kita telah mengagitasi Dewan Kelapa Sawit Nigeria, seperti yang ada di Malaysia – Dewan kelapa sawit Malaysia. “Ia merupakan dewan yang berdedikasi untuk memastikan kebijakan diterapkan, dan juga memeriksa apa yang terjadi di industri, serta memastikan hal yang benar dilakukan di industri,” kata Tuan Nwabuko. “Ketika ada menggabungkan semua hal ini, saat itulah impian kami untuk industri kelapa sawit dapat tercapai,” tutupnya.

NIGERIA'S NEGLECT OF OIL PALM PUSHED IT DOWN GLOBAL PECKING ORDER In the 1950s and 1960s, oil palm farming was a key sector of the Nigerian economy. The sector generated about 43 per cent of the world’s total production. Nigeria was considered as the leader in the world palm oil market. The production of palm oil went beyond domestic consumption, with the excess produce exported to the world palm oil market. However, in the past decades, the country has become an importer of palm oil due to the negligence of the sector. Today, Nigeria produces only less than two per cent of global output. Data shows that the sector’s decline began amidst the oil boom of the 1970s, when less funding was given to farmers, producers, and researchers.

In Edo, Akwa Ibom and Ondo States, where oil palm farming is part of life and culture due to its availability in the area, most of the women and men engaged in the cultivation and processing of palm fruits, who spoke with this newspaper, said that their production has reduced due to lack of significant support ranging from soft loans to provision of viable planting materials and other necessary input supplies. With a population of over 197 million people, Nigeria consumes roughly 3 million metric tonnes (MT) of fats and oils annually with palm oil accounting for approximately 45 per cent of total consumption in 2018. Nigeria is the largest consumer of palm oil in Africa with 1.34 million MT in 2018, according to an analysis

by PriceWaterhouseCoopers (PWC), an international auditing firm.

NO FINANCE

Checks have also revealed that oil palm farmers in these regions do not have access to subvention or soft loans from the federal government despite palm oil being among the mandate crops of the federal government’s Anchor Borrowers’ Programme (ABP).

President Muhammadu Buhari in November 2015, launched the ABP to provide farm inputs in kind and cash to small-holder farmers to boost agricultural production and for the country to reverse its negative balance of payments on food. Farmers captured under this

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programme include those cultivating cereals, cotton, roots and tubers, sugarcane, tree crops (cocoa, rubber, oil palm, etc.) legumes, tomato, and livestock. The loans are disbursed through any of the deposit money banks, development finance institutions and microfinance banks, all of which the programme recognises as participating financial institutions.

According to the guidelines of the programme, upon harvest, benefiting farmers are expected to repay their loans with harvested produce, which must cover the loan principal and interest, to an ‘anchor’ who pays the cash equivalent to the farmer’s account. Ododo Olotu, 69, originally from Delta State, who relocated to Ondo State in the quest for greener pastures in oil palm farming 35 years ago, said he has never received government subvention. His farm of about 700 hectares in Benin lays fallow because he has no financial support to use it for planting. “Government don’t listen to anybody, we are just

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managing ourselves to feed our children and to pay their school fees,” he said. “There is money in palm oil, cocoa and maize production. As I’m now, if the government can assist me with about N10 million in my account, and be monitoring me, it will go a long way.” The spokesperson of Nigeria’s apex bank, (CBN), Isaac Okoroafor, said about N49.6 billion (USD 12 Million) has been disbursed through Real Sector Support Facility and Commercial Agriculture Credit Scheme, for oil palm value chain activities. “Under the Agri-Business/Small and Medium Enterprise Investment Scheme, N1.5 billion (USD 3.6 Million) has been disbursed to 248 oil palm farmers and processors,” he said in a text.

UNTAPPED OPPORTUNITIES

An assessment of the palm oil market shows that most farmers sell their products at available market price, as prices continue to fluctuate. In 1965, the World Bank injected nearly USD $2 billion into over 45 projects in Southeast Asia, Africa, and parts of Latin America to support the growth of the palm oil industry. Indonesia received $618.8 million, the highest; Nigeria received $451.5 million, while Malaysia got $383.5 million. From 1975 to 2009, Nigeria remained the second-largest recipient of funding from the World Bank for palm oil investments with six projects. However, only one project survived while the rest went bankrupt.

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According to the CBN, if Nigeria had maintained its market dominance in the palm oil industry, the country would have been earning approximately $20 billion annually from cultivation and processing of palm oil as of today. Despite Nigeria being the largest producer of palm oil in Africa, Benin was the largest exporter of the commodity from Africa in 2018. Nigeria is the sixth-highest palm oil-exporting country in Africa, according to PWC. Data from the United States Department of Agriculture added that Nigeria imported about 350 and 400 million MT of palm oil in 2019 and 2020 respectively.

KEY PRODUCE

Palm oil is an edible vegetable with wide economic values, ranging from the leaf to the body of the tree, with richness in saturated fat. Oil palm is agreed to have generally originated in the tropical rain forest region of West Africa that runs through the southern latitudes of Cameroun, Cote d’Ivoire, Ghana, Liberia, and Nigeria Sierra Leone, down to the equatorial region of Angola. The establishment of trade in palm oil from West Africa was mainly the result of the industrial revolution in Europe. Palm oil became the major raw material for the production of soap, and as demand for soap increased, there was a need for adequate availability of vegetable oil suitable for its production, and so the demand for palm oil increased. Its availability in the southern part of the country especially in Akwa Ibom State has a lot to do with soil type.

According to Usen Offiong, a senior lecturer in the department of soil science, University Of Uyo, oil palm trees can adapt to different soil types but grow best in moist and well-drained textured soil.

“Oil palm trees grow well in a favourable environment, though it can adapt to different soil types, it requires moist, deep, and well-drained textured soils rich in humus content. Sandy soils, particularly the coastal sands are not ideal for oil palm cultivation,” Mr Usen said.

“Oil palm trees require enough air and sunlight, heavy clay soils with poor drainage properties may cause aeration problems to the plant during the rainy season,” he added.

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Mesin Penggilingan untuk Petani Kecil di Nigeria Mill machinery for Nigerian Smallholders

MAJOR CONSTRAINTS - EXPERTS

Billy Ghansah, the agriculture coordinator, Okomu Oil Palm Company, said there is little room for export when Nigeria is a net importer of oil palm, adding that the country can only be exporting when it can produce enough to serve domestic purposes. “Don’t forget there is a big gap between domestic production and consumption. And if you don’t satisfy your local market, there is no incentive for you to export,” he said. He said for Nigeria to fill the existing gaps in its palm oil production, there is a need to plant about 100,000 hectares of oil palm now. He said the basic cultivation strategy of oil palm was developed in Africa, but we (Nigeria) didn’t take advantage of it, and the Asians took over and went ahead, such that people think that they came to pick the seeds from here. “They didn’t,” he added.

He explained that rather they (Asians) made use of what they had and improved it. He said the biggest development has been the development of the seed (cultivar) for production, which accounts for the biggest improvement in yields. In a similar manner, the Nigerian Institute for Oil Palm Research (NIFOR)’s acting executive director, Celestine Ikuenobe said the main challenge bedevilling the oil palm sector is the low rate of planting and land acquisition in the tropical regions of the country where the plants can thrive and blossom well.

He said they have been urging farmers to replace older plantations with improved seedlings in order to boost productivity.

More so, the managing director, Presco Plc, Felix Nwabuko, said despite the potential that the oil palm value chains has, all it has suffered is neglect, just like Nigerian agricultural sector as a whole.

As a source of food, it also has huge potential to address food security because of the huge and increasing population across the West African sub regions. “And that is what is driving our expansion program,” he added. Noting that what Nigeria is short of is the will to effectively and efficiently follow up policies from when they are created to execution.

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WAY FORWARD

Mr Nwabuko said his desire is to see the interest in actually developing the oil palm value chains sustained, and not just for the wish to make quick cash out of it. “Oil palm is not where you can make quick cash, it deserves patience. It is a long term business. From the day you get into it, before you start to make money, it’ll take you years if you’re a new entrant.” He said those interested, and the government itself, must realise what it takes in terms of making it work, while reiterating that even after launching the Nigerian National Oil Palm Policy, which addresses the issues, “let’s now begin the implementation mode,” he noted. “Let’s have a platform that will drive those policies and that’s why some of us have been agitating for what we called the Nigerian Oil Palm Council, like we have in Malaysia — the Malaysian Oil palm council. “That will be a council that is dedicated to ensure that the policies put in place are implemented, and also be checking what is going on in the industry, and making sure that the right things are done in the industry,” Mr Nwabuko said. “When you marry these things, that’s when our dream about the oil palm industry will come to fruition,” he concluded.

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LEBIH DARI 750 SERTIFIKAT ISPO DIKELUARKAN UNTUK PRODUSEN PADA TAHUN LALU MORE THAN 750 ISPO CERTIFICATES ISSUED FOR PRODUCERS AS OF LAST YEAR Tampak aerial menunjukkan perkebunan minyak kelapa sawit di Bulutumbang, Belitung. Pemerintah sedang menerbitkan sertifikat Minyak Kelapa Sawit Berkelanjutan Indonesia (Indonesia Sustainable Palm Oil / ISPO) untuk semakin banyak perkebunan minyak kelapa sawit dalam negeri, tetapi sertifikat tersebut tidak diakui oleh Uni Eropa.

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ebih dari 750 sertifikat Minyak Kelapa Sawit Berkelanjutan Indonesia (Indonesia Sustainable Palm Oil / ISPO) telah diterbitkan tahun lalu, tetapi kebanyakan untuk perusahaan swasta dan perusahaan perkebunan milik negara PT Perkebunan Nusantara (PTPN), sementara banyak petani kecil masih belum memiliki sertifikat. Menurut Didi Junaedi, direktu pengolahan dan pemasaran hasil perkebunan Kementerian Pertanian, sebanyak 735 dari sertifikat tersebut adalah untuk badan usaha. “Ada juga sekitar 20 sertifikat ISPO untuk petani kecil, meskipun sebelumnya bersifat sukarela,” kata Didi dalam sebuah diskusin daring.

Melalui penerbitan sertifikat, pemerintah berupaya mengatasi kekahawatiran global atas deforestasi dalam produksi minyak kelapa sawit mentah (CPO).

Peraturan Presiden No. 44 Tahun 2020 mewajibkan petani kecil untuk mendapatkan sertifikasi selambat-lambatnya tahun 2025. Bagi perusahaan, kewajiban tersebut berlaku segera setelah peraturan diterbitkan. Pemerintah telah berusaha untuk melawan kampanye anti CPO Indonesia atas dugaan kerusakan alam, terutama oleh Uni Eropa, salah satu mitra dagang terbesar negara tersebut. Namun, UE tidak mengakui sertifikat ISPO. Lebih dari sepertiga dari 16,38 juta hektar lahan perkebunan kelapa sawit di seluruh negeri tersebut kini telah bersertifikasi, menurut Rusman Heriawan, penasihat Forum Rencana Aksi Nasional untuk Minyak Kelapa Sawit Berkelanjutan. Hampir 63 persen perkebunan dimiliki oleh perusahaan yang telah bersertifikasi, begitu juga dengan sepertiga perusahaan perkebunan milik negara, menurut estimasi dari Rusman, di mana sebelumnya ia menjabat sebagai wakil menteri pertanian dan kepala Badan Pusat Statistik (BPS). Sebaliknya, hanya 0,19 persen petani kecil yang memiliki sertifikat. “Ini masih sangat tidak merata,” aku Rusman. “Sementara itu kami tidak bisa mengecualikan perkebunan petani kecil dalam konteks industri kelapa sawit. Itu harus mencakupi semua orang.”

Riau memiliki area perkebunan kelapa sawit terluas dengan total 2,43 juta hektar, diikuti oleh Kalimantan Barat, Sumatera Utara, Kalimantan Tengah dan Sumatera Selatan, menurut data dari Kementerian Pertanian. Namun produktivitas tertinggi hampir 5 ton per hektar ada di Sumatera Utara. Pemerintah perlu menyelesaikan deforestasi sebagai akibat dari pembukaan lahan perkebunan kelapa sawit yang baru, kata Diah Suradiredja dari Yayasan Kehati, sebuah yayasan yang mengumpulkan dan mengelola hibah serta dukungan untuk melestarikan keanekaragaman hayati negera. Ia mengatakan bawah 3,4 juta hektar perkebunan terletak di dalam wilayah hutan, yang secara resmi terlarang untuk budidaya. “Mengapa kita menjadi begitu khawatir terkait ini? Karena ini adalah salah satu isu yang diangkat dan membuat kami tertekan; kami harus menyelesaikan masalah terkait deforestasi,” kata Diah. Eskpor CPO Indonesia turun 41,10 persen dibandingkan tahun lalu menjadi 418.259 ton di bulan Maret, menurut data terbaru BPS, di mana sebagian besarnya dikirim ke India.

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More than 750 Indonesia Sustainable Palm Oil (ISPO) certificates have been issued as of last year, but the vast majority are for private corporations and state-owned plantation company PT Perkebunan Nusantara (PTPN), while smallholders remain largely uncertified. According to Didi Junaedi, the director for processing and marketing of plantation products at the Agriculture Ministry, 735 of those certificates were for corporate entities.

“There are also 20 ISPO certificates for smallholders, although it was previously voluntary,” Didi said at an online discussion.

Through the issuance of the certificates, the government seeks to address global concerns over deforestation in crude palm oil (CPO) production.

Presidential Regulation No. 44 of 2020 requires smallholders to get ISPO certificates no later than 2025. For companies, the obligation under the presidential regulation took effect immediately after it was issued. The government has been seeking to counter what it calls a campaign against Indonesian CPO over alleged environmental damage, especially from the European Union, one of the country’s major trading partners. However, the EU does not recognize the ISPO certificate. More than one-third of the 16.38 million hectares of oil palm plantations across the country are now certified, according to Rusman Heriawan, an advisor of the National Action Plan for Sustainable Palm Oil Forum.

Nearly 63 percent of the plantations owned by companies have been certified, as have nearly one-third of state-owned plantations, according to an estimate from Rusman, who in the past served as deputy agriculture minister and as the head of Statistics Indonesia (BPS). By contrast, a mere 0.19 percent of smallholder plantations have been certified. “This is still very uneven,” Rusman admitted. “Meanwhile, we cannot exempt smallholder plantations in the context of the entire palm oil industry. It has to be everyone.”

Riau has the largest oil palm plantation areas with a total of 2.43 million ha, followed by West Kalimantan, North Sumatra, Central Kalimantan and South Sumatra, according to data from the Agriculture Ministry. But the productivity was highest at almost 5 tons per ha in North Sumatra. The government needs to resolve deforestation resulting from opening new oil palm plantations, says Diah Suradiredja of Yayasan Kehati, a foundation that collects and manages grants and other support to preserve the country’s biodiversity. She said 3.4 million ha of plantations were located inside forest areas, which are officially off-limits for cultivation. “Why do we have to be concerned about this? Because this is one of the issues raised and has put us under pressure; we have to solve issues related to deforestation,” said Diah.

Indonesian CPO exports were down 41.10 percent year-on-year at 418,259 tons in March, according to the latest BPS data, the majority of which was shipped to India.

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CARGILL MERENCANAKAN KILANG MINYAK KELAPA SAWIT BERKELANJUTAN INDONESIA

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erusahaan perdagangan Cargill telah mulai membangung penyulingan minyak kelapa sawit berkelanjutan di provinsi Lampung, Indonesia di bagian selatan pulau Sumatera, yang akan selesai dibangun pada akhir tahun 2022. Perusahaan tersebut akan berinvestasi sebesar 200 juta Dolar di pabrik tetapi belum dapat menentukan kapasitasnya pada tahap ini. Pabrik tersebut akan menerima minyaka kelapa sawit mentah bersertifikasi berkelanjutan dan diproses sesuai dengan kebijakan minyak kelapa sawit berkelanjutan Cargill. Ini akan menjamin produknya bebas deforestasi di seluruh rantai pasokan minyak kelapa sawit dan dapat dengan baik memenuhi permintaan pembeli di pasar Amerika Utara dan Eropa. Kekhawatiran jangka panjang mengenai

keberlanjutan budidaya minyak kelapa sawit telah memanas di Eropa selama setahun lalu, di mana Perancis, Austria, Belanda dan Jerman telah atau akan melarang penggunaan bahan bakar hayati berbasis minyak kelapa sawit di pasar mereka, menjelang penghapusan secara menyeluruh di UE pada tahun 2030.

Amerika Serikat juga telah melarang impor minyak kelapa sawit dari dua perusahaan Malaysia atas tuduhan pelanggaran hak asasi manusia di perkebunan. "Proyek ini merupakan langkah penting bagi Cargil untuk meningkatkan ketersediaan bahan minyak nabati yang diproduksi dan bersumber secara berkelanjutan bagi pelanggan kami,” kata presiden Cargill Asia-Pacific Robert Aspell.

Salah satu kilang Minyak Kelapa Sawit Cargill One of Cargill’s Palm Oil refinery

CARGILL PLANS INDONESIAN SUSTAINABLE PALM OIL REFINERY Trading company Cargill has started building a dedicated sustainable palm oil refinery in Indonesia's Lampung province in southern Sumatra, which it plans to complete in late 2022. The firm will invest $200mn in the plant but cannot specify capacity at this stage. The plant will accept certified sustainable crude palm oil and process according to Cargill's sustainable palm oil policy. This will allow it to guarantee deforestation-free products throughout the entire palm oil supply chain and better cater to traceability demands of buyers in North American and European markets. Long-running concerns

about sustainability of palm oil cultivation have been heating up in Europe during the last year, with France, Austria, the Netherlands and Germany already or soon banning the use of palm oil-based biofuels in their markets, ahead of an EU-wide phase-out by 2030.

The US has also prohibited palm oil imports from two Malaysian companies on allegations of human rights abuses on plantations.

"This project is a key step for Cargill to increase the availability of sustainably sourced and produced edible oil ingredients for our customers," said Cargill Asia-Pacific president Robert Aspell.

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OILS AND FATS INDUSTRY’S OUTLOOK ON THE ONGOING PANDEMIC JAKOB HELMS Jakob Helms, CEO of JJ-Lurgi, oversees the Malaysia-based life sciences business unit of Jebsen & Jessen Group and has done so since 2012. Having worked in Asia for over 26 years in the fields of engineering solutions and plant marketing, he brings with him a deep understanding of the region and a wide breadth of knowledge and experience.

Jakob joined Jebsen & Jessen Group in 2000 at the engineering division before transferring to JJ-Lurgi as its General Manager in 2002. Before his time at JJ-Lurgi, Jakob developed his career at a Danish multinational engineering company. A Danish national, Jakob holds a Master’s Degree from the Technical University of Denmark.

Extraction Plant

With more than 20 years of experience, could you share with us JJ-Lurgi’s history and Background?

JJ-Lurgi is a joint venture between diversified industrial conglomerate, Jebsen & Jessen Group and Air Liquide.

Established in 1992, JJ-Lurgi is a full-fledged engineering practice and leading innovator in the field of oils & fats, oleochemicals, and biodiesel. With engineering roots in Germany, we contract locally for our markets in Asia and have developed new generations of in-house expertise attuned to our clients’ particular needs. With more than 20 years of experience, we are able to provide insights into the nuances of oleochemical engineering culture, influencing our current work philosophy and future endeavors. Our business has transformed over the years to become a full-fledged engineering practice today that is among the strongest in the region, successfully delivering more than 300 plants across South East Asia, China and beyond.

Strategically located in Malaysia, Indonesia and China, our wide network and deep knowledge of the region, coupled with our state-of-the-art technology and engineering expertise, allow us to respond quickly to our customers’ needs and build a sustainable future for our partnerships. We continually invest in our organizational infrastructure and competence which enables us to fulfill our commitment to our customers. Research and development are consistent elements of our work, helping us to continuously offer new concepts and enhanced solutions to our customers.

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How does JJ-Lurgi compete with other similar market players to ensure the technologies and processes are up-todate and relevant in the market?

JJ-Lurgi is a joint venture between diversified industrial conglomerate, Jebsen & Jessen Group and Air Liquide.

Established in 1992, JJ-Lurgi is a full-fledged engineering practice and leading innovator in the field of oils & fats, oleochemicals, and biodiesel. With engineering roots in Germany, we contract locally for our markets in Asia and have developed new generations of in-house expertise attuned to our clients’ particular needs. With more than 20 years of experience, we are able to provide insights into the nuances of oleochemical engineering culture, influencing our current work philosophy and future endeavors.

Our business has transformed over the years to become a full-fledged engineering practice today that is among the strongest in the region, successfully delivering more than 300 plants across South East Asia, China and beyond.

Strategically located in Malaysia, Indonesia and China, our wide network and deep knowledge of the region, coupled with our state-of-the-art technology and engineering expertise, allow us to respond quickly to our customers’ needs and build a sustainable future for our partnerships.

Biodiesel Plant

We continually invest in our organizational infrastructure and competence which enables us to fulfill our commitment to our customers. Research and development are consistent elements of our work, helping us to continuously offer new concepts and enhanced solutions to our customers.

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Biodiesel Plant

2020 was a challenging year for most of the industries in the world due to the outbreak of the COVID-19. Despite the economic state last year, the palm oil industry managed to perform well and was the largest produced vegetable oil in 2020. Does JJ-Lurgi experience any turn of events from this?

The COVID-19 pandemic has certainly posed various challenges globally and for the industry and we are glad to have weathered the storm as part of the Jebsen & Jessen Group and continue on our growth journey, emerging stronger from the crisis. Some of the challenges we have overcome include adjusting to social distancing measures and working from home, delays in our site work and travel restrictions. All this is also underscored by a general slowdown in the market and industry as everyone grapples with the pandemic and its everchanging reality.

From adopting technologies and introducing new policies, we have ensured that our employees are able to give their best, anytime, anywhere to our customers, which has allowed us to buck the trend and ensure a sustainable future with our customers and partners despite the pandemic. For example, we were able to commission our solvent extraction plant for a China state-owned enterprise in just under a month despite the COVID-19 pandemic, overcoming challenges and restrictions that arose. This also included a successful test run with all contractual agreements and expectations met. Apart from that, we were also able to complete our commissioning for a Brazilian plant remotely. All these were made possible by using teleconferencing facilities and the use of dial-in Teamviewer (software application for remote control, desktop sharing and file transfer between computers), ensuring that our team based in Kuala Lumpur can provide step-bystep supervision and guidance to the local engineers in the field as they perform the commissioning work or even take control of the system remotely if required.

Splitting & Glycerine

The Malaysian government had decided to raise the cess levied on crude palm oil (CPO) and crude palm kernel oil (CPKO), what do you think are the effects that would be felt in the refining industry?

It will improve mechanization and automation in our industry. With the additional cess of RM2, more investments will be poured, especially in the downstream sector, into upgrading our refinery technologies and equipment to maximize operational efficiency and productivity. The increase in automation will also address the manpower shortage situation in our industry. At JJLurgi, our capabilities and outstanding workforce means that we are well poised for this future.

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Dumai Oleo Complex

Is JJ-Lurgi working on any new solutions or future development that can assist in the oil and fats industry?

Hydrotreated vegetable oil (HVO) is an identical fuel to diesel or kerosene, but made from low quality used cooking oils, waste oils and animal fats. We offer competitive pretreatment solutions for oil refiners moving into renewable fuel, which fulfill the stringent purity requirements of the HVO catalyst suppliers. Apart from the conventional pretreatment process, we also offer our patented Oil Splitting (Hydrolysis) solution to further boost the quality and yield of pretreated oils. The Hydrolysis solution Remote commissioning via Teamviewer Palm oil refinery in South Kalimantan, Indonesia further adds value to our customers by producing valuable byproduct, premium glycerine, which brings additional value creation in terms of producing refined glycerine or green chemicals from any existing HVO plant. There are also concerns and growing attention on the formation of contaminants in food oil such as 3-monochloropropane diol (3-MCPD) and glycidyl esters (GE) during oil refining. We have proven solutions to mitigate or remove these contaminants. Further market developments have seen the rise in demand of cocoa butter equivalents (CBE), a product which is fully compatible with cocoa butter and shares the similar chemical and physical characteristics, making them an ideal replacement to cocoa butter. We provide solutions in the market, offering technology that maximizes yield of exotic oils like shea butter for blending into CBEs. Together with our principal Air Liquide, we are introducing a number of new technologies to the market, such as soap carbonate technology (acid-free soapstock splitting), supercritical biodiesel production (catalyst-free process), bio propylene glycol production (a BASF licensed technology) as well as sorbitol production (hydrogenation of glucose). We are frequently looking to collaborate with our customers, suppliers and local leading universities for research and development purposes, including laboratory and pilot plant testing. We also support our local universities by offering internship programmes to groom the future engineering talents of our country.

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Palm Oil Refinery Plant Project in Indonesia

Lastly, do share your advice with the players in the palm oil industry.

I would like to highlight the importance of cooperation between all palm oil players in the industry and relevant government bodies on conservation efforts to combat misconceptions in anti-palm oil campaigns. We can lend our support and voices by advocating for palm oil sustainability and addressing the misconceptions of palm oil.

Equally important, everyone in the industry has a part to play in increasing sustainability efforts throughout our process chain and ensuring only the use of ethical methods to obtain palm oil. This includes keeping clean records, preventing the burning of forests, and ensuring fair trade and labour practices within own organization and also holding up partners to the same standards.

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The nucleus of our technologies is our people. With our rich heritage and wealth of experience, JJ-Lurgi has inculcated in its people a strong culture of commitment, professionalism and good business ethics to create values and help our clients grow their business.

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OIL SEED EXTRACTION | EDIBLE OILS | OLEOCHEMICALS | SPECIALTY FATS | BIODIESEL

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MEMANFAATKAN SENSOR SENIX TOUGHSONIC UNTUK PENGUKURAN TANGKI MINYAK KELAPA SAWIT

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umbuh secara eksklusif di daerah tropis, pohon kelapa sawit menghasilkan minyak premium, yang biasanya digunakan untuk memasak di negara berkembang. Ia juga digunakan dalam produk makanan, kosmetik, deterjen, dan bahkan untuk bahan bakar hayati. Minyak kelapa sawit merupakan bahan minor dalam makanan di Amerika Serikat, tetapi minyak kelapa sawit dapat ditemukan di lebih dari 50% dari semua produk kemasan yang dikonsumsi Amerika. Kelapa sawit ditanam di pertanian keluarga kecil dan perkebunan besar di seluruh Afrika, Asia dan Amerika Latin. Akibat ekspansi yang cepat dalam industri minyak kelapa sawit mengorbankan hutan tropis yang merupakan habitat bagi sejumlah spesies yang terancam punah dan juga menawarkan jalur kehidupan bagi beberapa komunitas manusia. Mengamankan hasil tertinggi dengan gangguan seminimal mungkin terhadap lingkungan adalah salah satu tantangan utama yang dihadapi oleh pertanian berkelanjutan.

Dana Dunia untuk Alam (World Wildlife Fund / WWF) bercita-cita untuk menghadirkan pasar global yang ramah lingkungan yang didasarkan pada produksi dan sumber minyak kelapa sawit yang dapat diterima secara sosial. Selain WWF, sejumlah sertifikasi juga telah disusun dalam beberapa tahun terakhir, termasuk Kelompok Minyak Kelapa Sawit Berkelanjutan (Roundtable on Sustainable Palm Oil / RSPO), Aliansi Hutan Tropis (Rainforest Alliance), Sertifikasi Berkelanjutan & Karbon Internasional (International Sustainability & Carbon Certification / ISCC) dan Kelompok Bahan Hayati Berkelanjutan (Roundtable on Sustainable Biomaterials / RSB). Tujuan dari kelompok-kelompok ini adalah untuk merangsang peningkatan permintaan dan penggunaan produk dengan menggunakan praktik-praktik tersebut. Semakin banyaknya perusahaan di dunia yang menghadapi tanggung jawab mereka dalam rantai pasokan dan hanya membeli minyak kelapa sawit dan minyak inti kelapa sawit bersertifikasi RSPO. Dengan prospek pasar yang luar biasa selain sangat menguntungkan dalam hitaungan per hektar, minyak kelapa sawit berkelanjutan merupakan potensi pendapatan yang sangat baik bagi petani kecil di daerah pedesaan. Sertifikasi berkelanjutan membuka pintu bagi pasar internasional, yang menawarkan peluang pendapatan yang lebih tinggi sementara juga meningkatkan lapangan kerja di daerah pedesaan bagi negara penanam kelapa sawit.

Senix Corporation

Senix ToughSonic 30 telah dipilih menjadi sensor pilihan bagi produsen minyak kelapa sawit Asia yang berskala besar.

Senix ToughSonic 30 mampu mengukur dan memantau dengan sangat akurat tingkat Minyak Kelapa Sawit dalam tangki besar dengan ketinggian sekitar 9 meter. Data level ditransmisikan melalui unit tampilan dengan hasil 4-20 mA dari sensor tersebut, yang juga tersedia dari Senix. Sensor harus memiliki kapasitas untuk mentolerir lingkungan yang kotor dan panas karena tangki jenis ini terletak di luar ruangan. Senix ToughSonic 30 juga dipilih karena rancangannya yang tahan lama, yang dirancang khusus untuk digunakan di beberapa lingkungan industri yang keras dengan menggabungkan perangkat elektronik yang terlindungi, rumah baja tahan karat dengan kadar 316 dan tingkat ketahanan debu dan air hingga tingkat 68. Mereka dapat dengan mudah dihubungkan dengan unit tampilan yang dapat mengontrol sakelar dan pompa serta pada saat bersamaan mengukur tingkat atau jarak dengan presisi yang luar biasa dan banyak lagi.

UTILIZING SENIX TOUGHSONIC SENSORS FOR PALM OIL TANK MEASUREMENT

Senix Corporation

www.indopalmoil.com

Grown exclusively in the tropics, the oil palm tree yields premium oil, which is typically utilized for cooking in developing countries. It is also used in food products, cosmetics, detergents, and, to some extent, biofuel. Palm oil is a minor ingredient in the diet of those in the U.S., but palm oil can be found in more than 50% of all packaged products consumed by Americans. Oil palms are grown both on small family farms and large plantations across Africa, Asia, and Latin America. The expense of rapid expansion in the palm oil industry comes at the cost of tropical forests— which are essential habitats for a number of endangered species and also offer a lifeline for several human communities. Securing the highest possible yield with minimum disruption to the natural environment is one major challenge sustainable farming faces.

The World Wildlife Fund (WWF) is aspiring toward delivering an environment-friendly global marketplace that is based on the production and sourcing of palm oil that can be considered socially

Palm Oil Today Indonesia

July - September 2021

acceptable. As well as the WWF, a number of certifications have been drawn up in recent years, including the Roundtable on Sustainable Palm Oil (RSPO), the Rainforest Alliance, International Sustainability & Carbon Certification (ISCC) and the Roundtable on Sustainable Biomaterials (RSB). These aim of these groups is to stimulate an increase in demand for, and use of, produce using such practices.

An increasing number of companies around the world are facing up to their responsibility in the global supply chain and are only buying RSPO certified palm and palm kernel oil. With exceptional market prospects in addition to being very profitable per hectare, sustainable palm oil represents excellent earning potential for smallholders in rural areas. Sustainability certification opens the door to the international market, which offers better earning opportunities while increasing employment in rural regions of countries farming the oil palm tree.

The Senix ToughSonic 30 has been chosen as the preferred sensor at a large-scale Asian Palm Oil producer. The Senix ToughSonic 30 can measure and monitor with great accuracy the Palm Oil levels in large tanks around 9 meters in height. The level data is transmitted via the sensor’s 4-20mA output on a display unit, also available from Senix.

The sensors must have the capacity to tolerate a dirty, hot environment due to the fact these kinds of tank are located outdoors.

The Senix ToughSonic 30 was also selected due to its durable design, which was engineered for use in some of the harshest industrial environments incorporating potted and protected electronics, rugged 316 stainless steel housing, and IP68 rating. They can be simply connected to display units that can control switches or pumps while rapidly measuring level or distance with outstanding precision and much more.

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Senix Corporation

www.indopalmoil.com

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ADOPSI TEKNOLOGI DI INDUSTRI MINYAK KELAPA SAWIT PT Esri Indonesia berbagi informasi kepada editor kami mengenai solusi dan tantangan bagi industri kelapa sawit di dalam mengadopsi teknologi baru dan bertransformasi untuk membentuk sebuah sistem yang berkelanjutan.

Cahyo Nugroho Chief Industry Solution Officer PT Esri Indonesia Bisakah Anda ceritakan mengenai latar belakang bagaimana Esri Indonesia mendukung perindustrian minyak kelapa sawit?

Esri Indonesia adalah perwakilan resmi Esri, yaitu perusahaan pengembang perangkat lunak Sistem Informasi Geografi (SIG) bernama ArcGIS yang berpusat di Redlands, California.

Didirikan pada tahun 1969, solusi dari Esri telah digunakan lebih dari 350,000 pelanggan dari berbagai macam industri di seluruh dunia. Sejak tahun 1997, Esri Indonesia telah bermitra dengan mayoritas perkebunan kelapa sawit terkemuka di Indonesia untuk memenuhi kebutuhan bisnis mereka seperti teknologi pemetaan. Seiring dengan berkembangnya kebutuhan bisnis di industri kelapa sawit, perangkat lunak ArcGIS kini banyak digunakan sebagai sebuah solusi berbasis lokasi untuk pengelolaan aset, persiapan penanaman lahan, perhitungan jumlah pohon kelapa sawit dengan menggunakan foto udara, pengelolaan operasional harian hingga distribusi hasil pengolahan minyak kelapa sawit.

Jikalau ada SATU saja solusi yang bisa Esri tawarkan, teknologi apa yang wajib diadopsi oleh perkebunan kelapa sawit?

Sangat sulit untuk dapat menawarkan satu solusi saja untuk mengatasi kompleksitas kebutuhan para pelaku usaha kelapa sawit, tetapi inti bisnis dari perkebunan kelapa sawit adalah mengenai manajemen perkebunan. yang berhubungan dengan tonase nyata panden tandan sawit.

Esri memiliki berbagai solusi yang dapat diterapkan pada setiap tahapan manajemen perkebunan seperti : 1. PengIdentifikasian status kematangan setiap tandan pohon kelapa sawit yang mencakup seperti sistem koordinasi panen, pembagian jalur pohon, tingkat pengaturan tingkat kematangan buah sampai pada waktu siap panen.

2. Manajemen panen - tandan sawit siap hampir sepanjang hari dalam setahun untuk itu selalu diperlukan perencanaan panen yang berkesinambungan seperti siapa yang mengerjakan, kapan, di mana, bagaimana rutenya sampaicara pengangkutannya.

3. Meningkatkan kualitas panen - kualitas minyak sawit terbaik adalah dengan memastikan setiap hasil panen memiliki kandungan kadar asam lemak bebas (FFA) rendah yang artinya perkebunan telah menghasilkan panen berkualitas Mempertahankan kelestarian alam merupakan masalah utama pada saat ini, bagaimana Esri dapat membantu industri ini untuk mencapainya?

Esri memiliki komitmen untuk turut serta melestarikan lingkungan dan pengelolaan lingkungan untuk keberlanjutan.

Solusi dari Esri berperan dalam setiap tahapan rantai pasokan perkebunan kelapa sawit seperti transparasi, verifikasi dan dampak nyata dari produksi hingga distribusinya. Melalui pemantauan berbasis SIG (Sistem Informasi Geografis), organisasi dapat melacak asal kelapa sawit dari pengolahan hingga ke perkebunan asalnya. Esri juga telah mengembangkan solusi untuk membantu komunitas kelapa sawit dalam memprediksi deforestasi dan dalam pengelolaan rantai pasokan yang sesuai dengan sertifikasi asosiasi Roundtable Sustainable Palm Oil Organisation (RSPO).

www.indopalmoil.com

Pembiayaan merupakan masalah utama selama masa pandemi dan tentunya untuk melakukan digital transformasi tidaklah murah. Bagaimana para kustomer Anda merespon hal ini?

Disaster Response Program (DRP) dari Esri bertujuan membantu bencana di seluruh dunia sebagai bagian dari kegiatan Corporate Citizenship. Di Indonesia, melalui Pusat Dukungan Darurat Geospasial (ESSC) Esri Indonesia menghadirkan Geoportal COVID-19 berbasiskan SIG untuk mendukung upaya tanggap darurat di masa pandemi. Program ini juga sebelumnya telah memberikan dukungan teknologi berbasiskan geospasial untuk berbagai bencana alam seperti gempa di Palu-Donggala, tsunami, letusan Gunung Agung tahun 2017 dan kejadian banjir di Jakarta. Saat bisnis Anda membutuhkan bantuan di saat pandemi ini, Esri dapat menyediakan data, perangkat lunak dan aplikasi yang dapat dikonfigurasikan serta memberikan dukungan teknis untuk mengoperasikan bisnis Anda berbasiskan SIG. Dengan menggunakan SIG, Anda dapat mengakses dan menvisualisasikan kritikal informasi seperti lokasi yang terdampak bencana. Dapatkan informasi yang dibutuhkan dengan cepat dan mudah dipahami untuk membuat keputusan bisnis yang tepat.

Pandemi tentunya secara signifikan telah memberikan dampak ke berbagai macam bisnis dan industri di seluruh dunia namun di saat yang sama juga telah mempercepat akselerasi digital transformasi. Para pebisnis kini terus mencari berbagai macam cara inovatif untuk terus mengedepankan keunggulan kompetitif dan menjaga bisnis terus berjalan di era “new normal” dan membangun ketahanan bisnis. Oleh karena itu, kami terus mendukung kustoer kami untuk terus membangun kapasitas bisnis mereka dan tidak hanya memberikan tanggap darurat terhadap bencana yang dihadapi tapi juga mendukung mereka dengan berbagai macam solusi bisnis untuk bertahan dan memulihkan bisnis.

Banyak perusahaan teknologi berkembang pesat selama pandemi, apakah Esri merupakan salah satu yang meraih keuntungan dari hal ini? Apakah Esri akan melihat pertumbuhan lebih lanjut setelah pandemi di tahun 2021-2022?

Kami melihat adanya permintaan yang cukup signifikan untuk layanan berbasis geospasial seperti informasi berbasiskan peta baik untuk keperluan public maupun internal perusahaan sejak pandemi dimulai akhir tahun lalu. Selain mendukung tanggap darurat COVID-19 yang terus masih berlansung, kami juga juga melihat adanya antusiasme yang cukup tinggi untuk menggunakan aplikasi geospasial sebagai bagian dari perencanaan bisnis yang berkesinambungan. Kami memiliki program pemberian lisensi gratis selama enam bulan kepada perusahaan yang memenuhi kualifikasi dimana mereka dapat menerapkan aplikasi berbasikan SIG secara cepat untuk membantu beradaptasi di era “new normal”. Esri memiliki sejarah dan pengalaman praktik yang panjang dalam mendukung upaya dan program tanggap darurat. Kegiatan ini tidaklah terkait langsung dengan pendapatan perusahaan. Kami juga telah sejak lama mempraktikkan disiplin keuangan, oleh sebab itu kami beruntung dapat terus mempertahankan operasional kami dan pada saat yang bersamaan membantu berbagai macam krisis yang terjadi. Di tahun ini dan tahun mendatang, kami optimis bahwa dunia usaha khususnya industri perkebunan kelapa sawit akan membaik. Seiring semakin banyak perusahaan beradaptasi di era kenormalan baru dengan melakukan transformasi digital, maka alur kerja akan semakin efisien dan efektif dalam menjalankan usaha di industri kelapa sawit. Sehingga, dapat dipastikan industri ini akan semakin tumbuh dan berkembang serta memberikan imbas positif kepada pemulihan ekonomi.

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ADOPTION OF TECHNOLOGY IN THE PALM OIL INDUSTRY PT Esri Indonesia opens to our editor about the viability and the challenges of getting the oil palm plantations to adopt technology, and how they could help shape sustainability.

Cahyo Nugroho Chief Industry Solution Officer PT Esri Indonesia

Could you share with us a bit about the background of Esri Indonesia in the palm oil industry?

Esri Indonesia is the official representative of Esri - a Geographic Information System (GIS) developer company called ArcGIS headquartered in Redlands, California. The company was begun in 1969 and Esri software is used in more than 350,000 users worldwide. Since 1997, Esri Indonesia has partnered with most country's leading palm oil plantations and agriculture companies addressing their needs with mapping technology. As the business requirement of the palm oil industries is evolving, ArcGIS software is now being used as a location intelligence to manage assets,land harvest management, tree counting using imagery, managing daily operations, monitoring of distribution on the planted trees.

What is the ONE solution that Esri offers currently that you think oil palm plantations should adopt?

In my opinion, its very difficult to choose only one solution given the complexity of palm oil industry, but the core business for palm oil plantation is about harvest management.

Harvest management is from palm bunch production which relate to real tonnage of harvest palm bunch.

In which Esri solution can be part of harvest management by : 1. Identify the status of each bunch ripeness of palm tree coordination, the section of the tree, update of ripeness and when it will ready to be harvest.

2. Harvest management – palm bunch are ready almost all day in a year, therefore, the business need to have a plan of action regarding harvest time such aswho will be in charge, when, where, route planner and transport system.

3. Improving palm oil quality – make sure each palm bunch as the lowest free fatty acids (FFA) which mean it is the best quality.

Sustainability is a key issue nowadays, how could Esri help the industry adhere to sustainability regulations?

Esri has a strong commitment related to sustainability and environmental management. Esri technology can accomodate each items in palm oil supply chain such as transparency, verification and tangible impact. Through GIS-based monitoring, organisations can trace all its palm oil back to the mill where it was processed and have traceability to all plantations origin. Esri also has developed a solution to help the palm oil community on predicting deforestation and manage supply chain to be certified by Roundtable Sustainable Palm Oil Organisation (RSPO).

Costings are a key concern during the pandemic, technology does not come cheap. How have your clients responded during this difficult period?

Esri’s Disaster Response Program (DRP) assists with disasters worldwide as part of the company’s corporate citizenship. Locally, Esri Indonesia’s Disaster Response Unit (Emergency Spatial Support Centre) regularly supports response and relief efforts with GIS technology and expertise when your capacity is exceeded. The centre has previously provided emergency response and relief efforts with geospatial technology and expertise in the wake of natural disasters like the Palu-Donggala earthquake, tsunamis, the eruption of Mt. Agung in 2017, and the recent Jakarta floods. When you need help quickly, Esri can provide data, software, configurable applications, and technical support for your emergency GIS operations. Use GIS to rapidly access and visualize mission-critical information about the specific locations affected by a disaster. Get the information you need fast, in a way that’s easy to understand, to make better decisions during a crisis.

While the pandemic has signficantly affected industries worldwide, it also accelerated digital transformation across many industries. Organisations have been seeking innovative ways to maintain competitive advantage, keep business running in the 'new normal'and build resilience.

Hence, we’ve been supporting users by building their capability to not only respond to the impact of the pandemic, but also equip them with the tools to help them plan for their recovery.

Many technology companies thrived during the pandemic, was Esri one of them benefiting from this? Is Esri expected to see even more growth as we see out the pandemic in 2021-2022?

We’re seeing a significant demand for our geo-analysis [and information maps, both for informing the public and for internal sensemaking] services since the COVID-19 outbreak last year. Apart from supporting critical COVID-19 emergency response efforts, we’ve noticed an increasing interest on using geospatial applications as part of business continuity planning. We also have a response program to provide qualifying organizations with software grants for a period of 6-months to rapidly deploy apps to help them adapt to the new normal. Esri has a history and practice of supporting crisis response efforts and programs. This is not directly related to our usual tracking of revenue. Our company has long practiced financial discipline, so we are fortunate to be able to keep our operations going while channelling resources in aid of crisis response efforts. This year oneward, we are optimistic that the business world, especially the palm oil industry, will improve.

As more organisations already adapting to the new normal by doing digital transformation, which creates more efficient and effective workflow in running their business in palm oil indsutry. Thus, it is certain that this industry will continue to grow. develop and have a positive impact on economic recovery.

www.indopalmoil.com

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AI Driven Plantations n science fiction, in galaxies far away, there are usually robots and intelligent systems to manage and complete work with ultimate precision and proficiency. What was once fantasy, is quickly becoming a reality for many industries today, namely agriculture. As Isaac Asimov famously quoted, “Today’s science fiction, is tomorrow’s science fact!” The philosopher farmer Masanobu Fukuoka said “the ultimate goal of farming is not the growing of crops, but the cultivation and perfection of human beings.” It is uncanny that both Masanobu and Asimov thoughts’ intersect when Asimov prosaically states, “You just can’t differentiate between a robot and the very best of humans.” In the realm of science fiction, where writers explore a future that is plausible but yet to be, we can see that even the humble bedrock of civilization - agriculture - must be ensconced with artificial intelligence, for society to make the necessary leap into the future.

AI Bunch Counting & Grading Up till now, for quality to be controlled at the source, capturing yields up to a block or sub-block level, and measuring individual harvester productivity, the industry has relied on hiring bunch checkers to count and grade the produce. However, this method has made it difficult to win the war on under ripe, overripe, and missing bunches. The inconsistency of grading standards from estate to estate, and differing exactness in quality between checkers has resulted in crop quality not improving, questionable OERs at mills and losses due to penalties for poor performance unable to be enforced.

“Robots will neither be common nor very good in 2014, but they will exist,” predicted Sir Asimov. He was right. Today robots can even exist purely as lines of code, and are capable of learning at incredible speeds. Unleashing the power of this “Machine Learning (ML) & Machine Vision (MV)” has been able to provide wide range of technologies, that benefits the plantation industry.

This “Artificial Intelligence” can be integrated with other improved technologies such as drones, sensors (IoTs), satellites, digital handheld computers, and advanced cameras, turning them in to solutions that help to drive improvements in quality, productivity & yield.

One example is the FFBQQ+ which is embedded into ABS Innovations (ABSi) PMMP FFBQQ Module for quantitative and qualitative control. The AI can count up to 15 bunches laid flat, and assigning a quality grade from the appearance of the bunches (color and morphology) this finally standardizes grading and counting operations, to ensure consistent and honest result of FFB Grading and Counting are being performed at the platform and ramp. Finally the adage from the Ancient Roman historian, Pliny the Elder, can come to pass, “The master’s eye is the best fertilizer”. However, it is not just in crop quality that the master of the plantation needs to delegate to cast his eye.

www.indopalmoil.com

AI Facial Recognition for Attendance A more familiar use case of AI or Machine Vision in many industries in the post-covid world today is in identifying people through Facial Recognition Technology. The AI in Facial Recognition systems serves to quickly identify people accurately and dispassionately, so when using this for daily worker attendance at the morning muster and while using handheld devices to take attendance in the field we can quickly ensure that estate’s operation are being completed by the right workers, at the right place doing the right activity, at the right time.

Facial Recognition has also very quickly addressed the trouble of ghost workers that have been haunting estates for generations. Ghost workers are harmful to plantations due to drops in productivity, wastage in support and infrastructure, work quality and work completion inconsistency and most harmful of all to business profits, as costs are expanded but work is not being completed.

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During Morning Musters there will no longer be shouting and calling worker names, instead self-serve attendance with Facial Recognition saves estates operation time, and provides an opportunity to use Muster sessions for more beneficial activities such as safety briefing, performance review and motivational training. It will ultimately allow for workers to reach the fields earlier and have longer productive days.

AI Drone Decision Support System Besides quality and employee attendance, it would be preferable if the master could also cast his eye over his entire plantation.

While obtaining photographs and other such digital imagery has been available since the advent of satellites, the automation of studying the photos to identify findings both good and bad, and using software to stitch the photos together into a single map has been a long time coming, and is still largely being done manually. So while companies may boast that they have the latest in terms of drones, they would be hard pressed to share to their shareholders the ROI from buying the technology but being unable to show real creation of value to the bottom-line.

The AI of the PMMP Drone Decision Support System (DDSS) is able to stitch all drone captured images, while also being able to study the images and detect, blank spots or vacant points, unhealthy and dead palms, count trees, and where necessary and predict the most suitable terracing.

Once identified, the AI brain will recommend the best courses of action to the plantation manager and tabulate and track these decisions in a dashboard. The DDSS does the work of deciding what action needs to be taken, and where and by when, and to keep checking whether it’s been done has been automated and refined by using AI technology.

INTELLIGENCE EMPOWERED PLANTATIONS Pulitzer Prize winner, Junot Diaz, had this to say about Science Fiction, “When you look at a lot of science fiction (novels), they’re asking questions about power. About what it means to have power, and what are the long-term consequences of power.” While AI and robots are no longer confined to the realm of science fiction, we can safely conclude that it is inevitable that the parties who embrace AI and robotics to enhance and augment plantations to be more intelligent, will also become more powerful players in the industry and even in the nations and communities they operate in.

However, as with any part of human history when winds of change are bellowing, it is expected that many are frightened by what the advent of AI and robots will do? Will it mean many jobs are lost? Will our personal data be safe? Can we trust a line of code with poisons and fertilizers? “… (In the future), a robot will likely be on the cover of the Time Magazine as the best CEO,” is the optimistic view of Jack Ma. He and many business leaders are of the view that machines will partner and cooperate with humans, not becoming their enemies. While the plantation industry is still new to the task of adopting these new technologies, it can take heart that companies like ABS Innovations are here to ensure that science fiction, becomes science fact.

- Deputy Managing Director of ABS Innovations Sdn Bhd (ABSi)

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