Palm Oil Today Indonesia Jan-Mar 2022

Vol.3 No.1 january - march 2022

Affiliated With :

A Publication of : Indonesia

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SOLIDARIDAD: LEADING THE CHARGE TO SUSTAINABILITY AND CLIMATE CHANGE IN INDONESIA NAMA-NAMA BESAR DI INDUSTRI MINYAK KELAPA SAWIT INDIA SEDANG MENOREHKAN RENCANA UNTUK EKSPANSI PERKEBUNAN MINYAK KELAPA SAWIT BIG NAMES IN INDIA’S PALM OIL INDUSTRY ARE CHALKING OUT PLANS FOR EXPANSION OF PALM OIL BILINGUAL : ENGLISH & BAHASA INDONESIA

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

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

NOTE

Managing Editor

Content Editor

Susan Tricia

Nur Atthirah Zawanah Azmee

Publications Manager

Media Executive

Amelia Lim

Paulina

Editorial Consultant

Graphic Designer

indo@fireworksbi.com

Kenny Yong

Felicia Zhang

Publisher : Indonesia

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WELCOME TO 2022 AS WE USHER IN THE NEW YEAR WITH CONFIDENCE! Greetings Readers!

Good news is finally permeating the ASEAN region!

Speedy inoculations and our region’s preparations to live with Covid-19 in the endemic world had given us a fresh perspective on how the pandemic may bottom out.

Despite the announcement of the Omicron variant which threatens to dampen some spirits and put some border reopening plans backwards, we could see the regional governments moving forward at all costs with plans for broader re opening as recent reports show the milder side of the Omicron.

We could see Indonesia starting to adapt various protocols in a bid to learn living with the virus. Face to face events, bazaars and concerts are back albeit with some limitations to capacity. On the ground now, it does feel like the worst is over as Indonesians come to grasp with how to live in a post pandemic world.

With the experience of the Indonesian government in containing the third wave and vaccinations moving at top speed, lockdowns could really be deemed a thing of the past with mandatory masking and mobile check-ins to malls and places of worship, and unlike Europe & US (which are facing massive waves now), people here feel safer with masks and getting vaccinated.

As expos begin to open, we are glad to be announcing that our exhibitions division would be running the 12th edition of PALMEX INDONESIA 2022 , Indonesia’s largest palm oil event is scheduled to be held in the palm oil hub of Medan. The physical event would be held on 2527 October 2022 @ Santika Hotel & Convention, Medan.

Palm Oil Today Indonesia would be having a booth there and visitors would be able to get copies of the hard copy magazines at the event!

With this, I look forward to seeing everyone soon as more vaccinated lanes in the region opens!

Susan Tricia Managing Editor

Fireworks Business Information (FBI) Indonesia

c/o PT. Fireworks Indonesia Jakarta Batam

+62 778 488 3726 indo@fireworksbi.com

Palm Oil Today Indonesia Digital Editions Available!

Log on to : www.indopalmoil.com

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

Palm Oil Today Indonesia

January - March 2022

www.indopalmoil.com

Palm Oil Today Indonesia

BERITA REGIONAL / REGIONAL NEWS 6

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(BHS) : Pengadilan Indonesia Menolak Tawaran Untuk Mengembalikan Izin Minyak Kelapa Sawit Di Papua (ENG) : Indonesia Court Rejects Bid To Reinstate Palm Oil Permits In Papua (BHS) : Produsen Minyak Kelapa Sawit Malaysia Menyesuaikan Diri Dengan Kekurangan Tenaga Kerja, Biaya Perekrutan Yang Tinggi (ENG) : Malaysia’s Palm Oil Producers Adjust To Labour Shortages, Higher Recruitment Costs (BHS) : Pembeli Utama India Mendukung Minyak Kelapa Sawit Malaysia Karena Harga Indonesia Naik (ENG) : Top Buyer India To Favour Malaysian Palm Oil As Indonesian Prices Rise (BHS) : Rencana Pemerintah Indoensia Berfokus Pada Pengembangan Industri Hilir Minyak Kelapa Sawit Dalam Negeri (ENG) : Indonesian Government’s Roadmap Focused On Downstream Palm Oil Industry’s Development (BHS) : Dewan Negara Produsen Minyak Kelapa Sawit (Council Of Palm Oil Producing Countries / CPOCC) Harus Menggunakan Teknologi Terbaru Untuk Melawan Propaganda Anti Minyak Kelapa Sawit (ENG) : Council Of Palm Oil Producing Countries (CPOCC) Must Use Latest Technologies To Counter Anti-Palm Oil Propaganda (BHS) : Cargill Membuat Investasi Besar Senilai $35 Juta Untuk Lokasi Pemrosesan Bahan Kembang Gula Di Malaysia (ENG) : Cargill Makes Major $35 Million Investment In Malaysian Site For Confectionery Ingredient Processing

BERITA DUNIA / WORLD NEWS 16

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(BHS) : Pabrik Solar Terbarukan Berbasis Minyak Kelapa Sawit Pertama Akan Dibangun Di Brazil (ENG) : First Palm Oil-Based Renewable Diesel Plant To Be Built In Brazil (BHS) : Pemerintah Federal Nigeria Dan Negara Bagian Didesak Untuk Memprioritaskan Produksi Minyak Kelapa Sawit (ENG) : Nigeria’s Federal Government And States Urged To Prioritize Palm Oil Production (BHS) : Empat Negara Akan Bergabung Dengna CPOPC Sebagai Anggota Penuh Pada Bulan Mei 2022, Kata Direktur Eksekutif (ENG) : Four Countries Set To Join CPOPC As Full Members In May 2022, Says Executive Director (BHS) : Prakiraan Produksi Minyak Kelapa Sawit 2022 oleh Analis Terkemuka (ENG) : Palm Oil Production Forecast 2022 by Leading Analysts

BERITA UTAMA / COVER STORY 21

(BHS) : Nama-Nama Besar Di Industri Minyak Kelapa Sawit India Sedang Menorehkan Rencana Untuk Ekspansi Perkebunan Minyak Kelapa Sawit (ENG) : Big Names In India’s Palm Oil Industry Are Chalking Out Plans For Expansion Of Palm Oil Plantation

BERITA BIOFUEL / BIOFUEL NEWS 24

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(BHS) : Indonesia Akan Meningkatkan Upaya Bahan Bakar Hayati Untuk Memenuhi Target Ramah Lingkungan, Kata Seorang Pejabat (ENG) : Indonesia To Ramp Up Biodiesel Efforts To Meet Green Energy Targets, Official Says (BHS) : UE Melihat Konsumsi Bahan Bakar Hayati Menurun Pada Tahun 2031, Dan Impor Minyak Kelapa Sawit Merosot (ENG) : EU Sees Biofuel Consumption Fall By 2031, Palm Oil Imports Slump

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January - March 2022

Palm Oil Today Indonesia

January - March 2022

KOMENTAR / COMMENTARY 26

(BHS) : Mengapa Petani Kecil Merupakan Kunci Dalam Sistem Pangan Berkelanjutan (ENG) : Why Smallholders Are Key To Sustainable Food Systems

BERITA KEBERLANJUTAN / SUSTAINABILITY NEWS 29

(BHS) : Perlunya Mendorong Penelitian Pengembangan Minyak Kelapa Sawit Berkelanjutan (ENG) : Need To Push Research On Sustainable Palm Oil Development

IN THE HOT SEAT 31

(ENG) : Solidaridad: Leading the Charge to Sustainability and Climate Change in Indonesia. An exclusive interview with Dr Suresh Motwani, General Manager, Edible Oil, Solidaridad

INOVASI & TEKNOLOGI / INNOVATIONS & TECHNOLOGY 35

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(BHS) : CNH Industrial Membeli Perusahaan Perangkat Lunak NX9 Untuk Meningkatkan Bisnis Pertanian (ENG) : CNH Industrial Buys Software House NX9 To Bolster Agriculture Business (ENG) : Selontra: Rodent Control & BASF’s Effort in Minimalizing Environmental Impact. An Exclusive Interview with Mr Hans Athaide, Msc(Hons), Professional and Specialty, Solutions ASEAN

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Palm Oil Today Indonesia

January - March 2022

Perkebunan minyak kelapa sawit di Papua Palm Oil plantations in Papua

PENGADILAN INDONESIA MENOLAK TAWARAN UNTUK MENGEMBALIKAN IZIN MINYAK KELAPA SAWIT DI PAPUA

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AKARTA: Pengadilan Indonesia menolak tawaran dari dua perusahaan untuk mengembalikan izin perkebunan minyak kelapa sawit dia wilayah paling timur Papua, dalam apa yang dilihat sebagai ujian terhadap janji pemerintah untuk menghentikan konversi lahan tersebut untuk menahan deforestasi.

INDONESIA COURT REJECTS BID TO REINSTATE PALM OIL PERMITS IN PAPUA

Putusan tersebut muncul dua bulan setelah Indonesia mengatakan bahwa mereka tidak akan menyetujui izin minyak kelapa sawit yang baru setelah moratorium perkebunan berakhir.

AKARTA: An Indonesian court rejected a bid by two companies to reinstate permits for palm oil plantations in its easternmost region of Papua, in what was seen as a test of the government’s pledge to halt such land conversions to contain deforestation.

PT Papua Lestari Abadi (PLA) dan PT Sorong Agro Sawitindo (SAS) memiliki izin untuk sekitar 70.000 hektar (172.973 ekar) lahan, hampir setara dengan tujuh kali luas kota Paris. Perusahaan tersebut telah menggugat Bupati Sorong di Papua Barat untuk mengawasi perizinan mereka, dengan alasan pencabutan izin tersebut telah merugikan perusahaan.

Bupati Sorong telah mencabut izin seluas 105.000 hektar yang dimiliki oleh PLA, SAS dan PT Inti Kebun Lestari, yang juga melawan keputusan pengadilan. Pengadilan menolak “keseluruhan gugatan terdakwa,” kata Petrus P Ell, pengacara yang membela Bupati Sorong, pada sebuah konferensi virtual setelah putusan tersebut.

Pengacara perusahaan, Juhari mengatakan bahwa mereka akan mengajukan banding atas putusan tersebut. Pada bulan lalu Indonesia bergabung dengan 127 negara lain yang berjanji untuk mengakhiri deforestasi pada tahun 2030, tetapi hanya beberapa hari kemudian tampaknya mengalami kemunduran, mengatakan bahwa tujuan nil- deforestasi bertentangan dengan kepentingan pembangunan.

Sebaliknya, Indonesia menjanjikan tujuan “penyerapan karbon” untuk sektor kehutanannya pada tahun 2030, yang berarti bahwa sektor tersebut akan menyerap lebih banyak emisi gas rumah kaca daripada yang dihasilkannya.

Perubahan yang dilakukan oleh negara yang dianggap penting untuk menyelamatkan hutan hujan tropis memicu kritik dari para pemerhati lingkungan, tetapi Greenpeace Indonesia menyambut baik putusan pengadilan pada hari Selasa.

“Kami berharap ini akan mendorong kabupaten dan provinsi lain,” kata juru kampanye Nico Wamafma dalam sebuah pernyataan. Indonesia, rumah bagi hutan tropis terbesar ketiga di dunia dan produsen minyak kelapa sawit utama, telah melarang pembukaan lahan hutan sejak tahun 2011.

Kementrian lingkungan mengklaim telah mengurangi laju deforestasi hingga 75 persen tahun lalu dengan mengendalikan kebakaran hutan dan membatasi pembukaan lahan.

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The verdict comes two months after Indonesia said it would not approve new palm oil permits even after the lapse of a moratorium on plantations.

PT Papua Lestari Abadi (PLA) and PT Sorong Agro Sawitindo (SAS) had permits for about 70,000 hectares (172,973 acres) of land, equivalent to nearly seven times the size of the city of Paris.

The firms had sued the head of the Sorong district in West Papua overseeing their permits, arguing that revoking them had harmed the companies.

The Sorong district head revoked permits covering 105,000 hectares held by PLA, SAS and another company PT Inti Kebun Lestari, which is also fighting the decision in court. The court rejected “in its entirety the plaintiff’s claim,” Petrus P Ell, a lawyer defending the head of Sorong district, told a virtual conference after the verdict.

The companies’ lawyer, Juhari, who uses one name, said they would appeal the verdict. Indonesia last month joined 127 other nations pledging an end to deforestation by 2030, but just days later appeared to back track, saying that a zero-deforestation goal was at odds with development interests.

Instead, Indonesia promised a “carbon net sink” goal for its forestry sector by 2030, meaning that the sector will absorb more greenhouse gas emissions than it emits.

The about-face by a country seen as critical to saving tropical rainforests triggered criticism by environmentalists, but Greenpeace Indonesia welcomed Tuesday’s court verdict.

“We hope this will be encouraging for other districts and provinces,” campaigner Nico Wamafma said in a statement. Indonesia, home to the world’s third-largest tropical forests and a top producer of palm oil, has banned forest clearing since 2011.

The country’s environment ministry claims to have reduced the rate of deforestation by 75 per cent last year by controlling forest fires and curbing land clearing.

Palm Oil Today Indonesia

January - March 2022

REGIONAL NEWS

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PRODUSEN MINYAK KELAPA SAWIT MALAYSIA MENYESUAIKAN DIRI DENGAN KEKURANGAN TENAGA KERJA, BIAYA PEREKRUTAN YANG TINGGI

Seorang pekerja minyak kelapa sawit sedang bekerja A palm oil worker at work

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UALA LUMPUR: Produsen minyak kelapa sawit Malaysia sedang berlomba-lomba untuk menyesuaikan diri dengan kekurangan pekerja yang akut akibat coronavirus dan tingginya biaya perekrutan saat mereka membuat perubahan untuk menanggapi tuduhan kerja paksa.

Negara tersebut, kedua setelah Indonesia dalam produksi minyak kelapa sawitnya, telah menjadi lebih kompetitif dalam beberapa bulan terakhir karena cukai ekspor yang lebih tinggi yang dipungut oleh negara tetangganya. Namun biaya pekerja yang meningkat berarti Malaysia beresiko kehilangan keunggulannya dan berpotensi menyerahkan pangsa pasar ke Indonesia.

Biaya yang meningkat, serta harga pupuk yang mencapai rekor tertinggi mempengaruhi kedua negara tersebut, mendorong harga komoditas utama ke rekor tertinggi di bulan Oktober. Hal itu telah memaksa kenaikan harga pangan di seluruh dunia, dan meningkatkan harga kosmetik serta deterjen, dan produk lain yang menggunakan minyak kelapa sawit.

Masalah yang paling mendesak bagi produsen minyak kelapa sawit seperti FGV Holdings dan Sime Darby Plantation adalah kekurangan pekerja untuk memanen pohon kelapa sawit, sebuah tugas yang membutuhkan keterampilan dan berbahaya.

“Isu-isu saat ini merupakan manifestasi ekstrim dari fakta bahwa ketika pendapatan tumbuh dan pekerja, dengan pilihan pekerjaan perkotaan menjadi lebih banyak, kurangnya kemampuan dan keinginan untuk melakukan pekerjaan yang lebih kasar, menarik mereka ke perkebunan menjadi lebih susah,” kata Julian McGill, kepala Asia Tenggara LMC International. “Sebentar lagi tidak akan ada tenaga kerja ‘murah’.”

KEPERGIAN COVID-19

Hingga bulan April tahun lalu sebanyak 337.000 pekerja migran, kebanyakan dari Indonesia, kini bekerja di perkebunan Malaysia, atau sekitar 80 persen dari angkatan kerja. Ribuan dari mereka pulang ke negaranya selama pandemi ketika Malaysia menutup perbatasannya dan berhenti mengeluarkan izin kerja baru untuk mengontrol penyebaran coronavirus baru. Ratusan pekerja tidak berdokumen juga dideportasi.

Alhasil, panen minyak kelapa sawit Malaysia menurun ke tingkat tertinggi selama 40 tahun terakhir, karena perkebunan beroperasi dengan sekitar 75.000 pekerja lebih sedikit dari yang dibutuhkan.

Penurunan drastis di produksi mendorong harga minyak kelapa sawit ke rekor terendah dan memicu kekhawatiran terhadap inflasi pangan.

Untuk meringankan situasi, di bulan September, Malaysia menyetujui perekrutan 32.000 pekerja asing untuk perkebunan kelapa sawit, memprioritaskan mereka yang berasal dari Indonesia.

Meskipun banyak yang sudah dipekerjakan, perkebunan masih jauh di bawah kapasitas untuk musim panen berikutnya di bulan September hingga November 2022.

Pemilik perkebunan merasa lebih sulit dan lebih mahal untuk mempekerjakan pekerja ketika mereka mencoba memperbaiki posisi Malaysia di pasar global yang disebabkan oleh tuduhan kerja paksa.

Bea Cukai dan Perlindungan Perbatasan (Customs and Border Protection / CBP) AS melarang impor minyak kelapa sawit pada tahun 2020 dari Sime Darby dan FGV karena dicurigai menggunakan kerja paksa, termasuk pengikatan hutang, kekerasan dan penahanan ilegal atas dokumen identitas diri. Larangan tersebut masih berlaku. Kedua perusahaan mempekerjakan auditor independen untuk mengevaluasi operasi mereka dan mengatakan mereka akan terlibat dengan CBP untuk mengatasi kekhawatirannya.

Tuduhan yang sama terkait kerja paksa juga telah dibuat oleh CBP dan kelompok hak asasi terhadap industri lain di Malaysia, termasuk karet dan elektronik. Pada bulan Juli, Departemen Luas Negeri AS menurunkan Malaysia ke daftar pengawasannya terhadap Tiongkok dan Korea Utara.

“Resiko dari proses rekruitmen yang gagal atau korup bagi pemerintah dan reputasi industri saat ini, yang sudah terguncang dari sanksi kerja paksa AS dan citra yang jelek secara global, adalah nyata,” kata aktivis hak-hak buruh Andy Hall kepada Reuters.

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Palm Oil Today Indonesia

January - March 2022

MALAYSIA’S PALM OIL PRODUCERS ADJUST TO LABOUR SHORTAGES, HIGHER RECRUITMENT COSTS

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UALA LUMPUR: Malaysia’s palm oil producers are racing to adjust to an acute shortage of workers due to the corona virus and sharply higher costs of recruitment as they make changes in response to accusations of forced labour.

The country, second only to Indonesia in palm oil production, has become more competitive in recent months due to higher export levies imposed by its southern neighbour. But mounting employment costs mean Malaysia risks losing that edge and potentially ceding market share to Indonesia.

The increased costs, alongside record-high fertiliser prices affecting both countries, pushed the key commodity to an alltime high in October. That has already forced up the price of the foodstuff worldwide, and is raising the costs of cosmetics and detergents and other products that palm oil is used in.

The most pressing problem for palm oil producers such as FGV Holdings and Sime Darby Plantation is a lack of workers to harvest palm trees, a skilled and dangerous task.

“The current issues are an extreme manifestation of the fact that as incomes grow and workers, with greater options of urban employment, become less able or willing to do manual labour, attracting them to the plantations will become more difficult,” said Julian McGill, head of South East Asia at LMC International.

“Soon there will be no ‘cheap’ labour.”

COVID-19 EXODUS

Up until April last year as many as 337,000 migrant workers, mostly from Indonesia, worked on Malaysian plantations, making up about 80per cent of the workforce. Thousands of them flew home throughout the pandemic while Malaysia closed borders and stopped issuing new work permits to control the spread of the new coronavirus. Hundreds of undocumented workers were also deported.

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As a result, Malaysia’s palm oil yields dropped to nearly 40year lows this year as plantations operated with about 75,000 fewer workers than needed. The steep drop in production pushed palm oil prices to record highs and sparked concerns about food inflation.

To alleviate the situation, Malaysia in September approved the recruitment of 32,000 foreign workers for palm oil plantations, prioritising those from Indonesia. Although even if that many were hired, it would still leave plantations well below full capacity for the next peak harvest season of September to November 2022.

Plantation owners are finding it harder and more expensive to hire workers as they try to repair Malaysia’s standing in global markets caused by accusations of using forced labour.

US Customs and Border Protection (CBP) banned imports of palm oil in 2020 from Sime Darby and FGV on suspicion of using forced labour, including debt bondage, violence and unlawful retention of identity documents. The bans are still in effect. Both companies have hired independent auditors to evaluate their operations and said they would engage with the CBP to address its concerns.

Similar accusations of forced labour have also been made by the CBP and rights groups against other industries in Malaysia, including rubber and electronics. In July, the U.S Department of State downgraded Malaysia to its labour watch list that includes China and North Korea.

“The risks of a failed or corrupt recruitment process to Malaysia’s government and industry reputation at this time, already reeling from US forced labour sanctions and a blackened image globally, are real,” labour rights activist Andy Hall told Reuters.

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January - March 2022

Sebuah lori yang mengangkut tandan buah segar dari perkebunan Malaysia A lorry transporting fresh fruit bunches from a Malaysian plantation

PEMBELI UTAMA INDIA MENDUKUNG MINYAK KELAPA SAWIT MALAYSIA KARENA HARGA INDONESIA NAIK TOP BUYER INDIA TO FAVOUR MALAYSIAN PALM OIL AS INDONESIAN PRICES RISE

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AKARTA - India kemungkinan membeli lebih banyak minyak kelapa sawit Malaysia setelah cukai impor yang dikenakan oleh produsen utama Indonesia mencapai rekor tertinggi tahun lalu, kata B.V. Mehta, direktur eksekutif Asosiasi Ekstraktor Pelarut Indua pada hari Kamis.

Indonesia telah mengenakan pajak dan cukai ekspor yang lebih tinggi pada tahun lalu dan membuat harga minyak kelapa sawit yang sebelumnya telah mencapai tingkat tertinggi tahun ini menjadi lebih mahal bagi pembeli utamanya. “Porsi impor minyak kelapa sawit Indonesia oleh India hampir mencapai 70-75%,” kata Metha dalam Konferensi Minyak Kelapa Sawit Indonesia tahunan. “Cukai ekspor yang tinggi yang dikenakan Indonesia membuat perusahaan penyulingan India enggan membeli dari Indonesia,” katanya, menambahkan bahwa di bulan Januari – September tahun ini, porsi impor minyak kelapa sawit Indonesia ke India menurun menjadi 55%, sementara Malaysia meningkat ke 45%.

Indonesia mulai memungut pajak ekspor minyak kelapa sawit mentah setelah absen tiga tahun pada bulan Februari tahun lalu, sementara cukai ekspor minyak makan telah mencapai rekor tertinggi senilai $255 per ton di bulan Februari tahun ini. Dalam sebuah upaya untuk memperlambat kenaikan harga yang mendekati rekor, India memangkas pajak impor dasar untuk minyak kelapa sawit, minyak kedelai dan minyak bunga matahari di bulan September. Indonesia menetapkan harga referensi ekspor minyak kelapa sawit mentahnya lebih tinggi untuk bulan Desember, yang berarti pajak dan cukai minyak kelapa sawit tetap berada di urutan teratas senilai $200 per ton dan $175 per ton.

Namun Indonesia kemungkinan akan tetap menjadi pemasok utama minyak kelapa sawit bagi Pakistan, kata Abdul Rasheed Janmohammed, ketua Asosiasi Penyulingan Minyak Makan Pakistan (Pakistan Edible Oil Refiners Association / PEORA) dalam konferensi tersebut. “Saya pribadi berpikir bahwa Indonesia akan memiliki harga yang jauh lebih baik dibandingkan Malaysia dan kuantitasnya juga akan lebih tinggi,” kata Janmohammed.

Dia juga mencatat bahwa pembeli dari India lebih bergantung pada impor minyak kelapa sawit mentah, sementara Pakistan mengimpir lebih banyak produk olahan, yang memiliki cukai ekspor lebih murah.

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AKARTA - India is likely to buy more Malaysian palm oil after export levies imposed by top producer Indonesia hit record highs in the past year, B.V. Mehta, executive director of India’s Solvent Extractors’ Association, said on Thursday.

Indonesia had imposed higher export taxes and levies in the past year, making prices of palm oil which had already reached record highs this year - more costly for the top buyer. “Indonesia’s share of palm oil imports by India earlier was nearly 70-75%,” Mehta told the annual Indonesian Palm Oil Conference. “Heavy export duty and levies being imposed by Indonesia (are) discouraging Indian refiners to buy from Indonesia,” he said, adding that in January-September this year, Indonesia’s share of Indian palm oil imports had dropped to 55%, while Malaysia’s had jumped 45%.

Indonesia started taxing crude palm oil exports again after three years absence in February last year, while export levies for the edible oil reached a record high of $255 per tonne in February earlier this year. In an effort to cool near-record price rises, India cut base import taxes on palm oil, soyoil and sunflower oil in September. Indonesia set its crude palm oil export reference price higher for December, meaning that palm oil taxes and levies remain at the top bracket of $200 per tonne and $175 per tonne, respectively.

Indonesia, however, is likely to remain a top supplier of palm to another major buyer Pakistan, Abdul Rasheed Janmohammed, chairman of the Pakistan Edible Oil Refiners Association (PEORA), told the conference. “I personally think Indonesia will have far better prices as compared to Malaysia and the quantity will be also high,” Janmohammed said.

He also noted that Indian buyers were more dependent on crude palm oil imports, while Pakistan imported more refined products, which had cheaper export duties.

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RENCANA PEMERINTAH INDONESIA BERFOKUS PADA

PENGEMBANGAN INDUSTRI HILIR MINYAK KELAPA SAWIT DALAM NEGERI Menteri Koordinator Bidang Perekonomian Airlangga Coordinating Economic Affairs Minister Airlangga

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akarta – Pemerintah telah menyiapkan rencana pengembangan industri minyak kelapa sawit hilir menjadi produsen terbesar di dunia untuk menghadapi gejolak harga minyak kelapa sawit mentah, kata Menteri Koordinasi Bidang Perekonomian Airlangga Hartarto. “Rencana pengembangan industri hilir minyak kelapa sawit telah ada. Ini mencakup cara untuk meningkatkan produktivitas, mendukung aktivitas hilir, seperti pangan oleo , oleokimia dan bahan bakar hayati menciptakan ekosistem mengimplementasi pemerintahan yang baik; dan mengembangkan teknologi untuk mendongkrak bisnis minyak kelapa sawit,” kata menteri tersebut dalam sebuah pernyataan yang diterbitkan di Jakarta pada hari Sabtu. Hartarto mengatakan bahwa minyak kelapa sawit merupakan salah satu komoditas pertanian yang tangguh dan berkontribusi pada pertumbuhan perkekonomian nasionalpada kuartal ketiga tahun 2021.

Industri minyak kelapa sawit juga berkontribusi secara lngsung dan tidak langsung dalam menciptakan lapangan kerja.

Oleh karena itu, pemerintah telah mengadopsi visi untuk mengubah industri minyak kelapa sawit domestik menjadi produsen minyak kelapa sawit terbesar di dunia dan mendorong pengembangan industri hilir minyak kelapa sawit, katanya. Dengan area lahan yang mencakup 10 persen dari cadangan lahan global untuk minyak nabati, Indonesia mampu menjadi produsen minyak kelapa sawit di dunia dan menguasai 55 persen pangsa pasar minyak kelapa sawit dan minyak nabati, katanya.

Selain itu, ia akan mampu memproduksi 40 persen dari minyak nabati global yang memainkan peran penting dalam konteks ketahanan pangan, tegasnya. “Industri minyak kelapa sawit menyumbang 15,6 persen dari total ekspor tahun 2020. Tentunya nilai tersebut menjadi salah satu penyumbang devisa yang terus meningkat meski di tengah pandemi,” ujarnya.

Menurut data dari Kementerian Koordinasi Bidang Perekonomian, luas tutupan kelapa sawit pada tahun 2019 mencapai 15,38 juta hektar, terdiri dari kebun minyak kelapa sawit milik petani kecil sebesar 41 persen; perkebunan besar negara, enam persen; dan perkebunan swasta nasional, 53 persen. “Data menunjukkan bahwa perkebunan petani kecil kelapa sawit berkontribusi secara signifikan pada perkembangan perkebunan minyak kelapa sawit di Indonesia,” katanya. Dia lebih lanjut mengatakan bahwa program Peremajaan Sawit Rakyat (PSR) menjadi krusial untuk meningkatkan produktivitas dan memperkuat sumber daya manusia serta meningkatkan kesejahteraan petani.

Program tersebut juga berkontribusi untuk menciptakan lapangan pekerjaan selam pandemi COVID-19 dan pada akhirnya memberikan efek positif bagi daerah, ujarnya. “Program PSR merupakan program strategis nasional untuk meningkatkan produktivitas rakyat, mempertahankan wilayah perkebunan, dan penggunaan lahan secara optimal,” ungkapnya.

INDONESIAN GOVERNMENT’S ROADMAP FOCUSED ON

DOWNSTREAM PALM OIL INDUSTRY’S DEVELOPMENT

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akarta - The government has prepared a roadmap for developing the downstream palm oil industry to transform it into world’s largest producer to weather volatility in crude palm oil prices, Coordinating Economic Affairs Minister Airlangga Hartarto stated.

“The roadmap for the development of downstream palm oil industry has been in place. It covers ways to increase productivity, support downstream activities, such as oleofood, oleochemical and biofuel; create an ecosystem; implement good governance; improve capacity building; and develop technology to boost palm oil businesses,” the minister noted in a statement released in Jakarta on Saturday.

Hartarto remarked that palm oil was one of the resilient farm commodities and contributed to the national economic growth in the third quarter of 2021.

The palm oil industry also contributes directly and indirectly to creating jobs. Hence, the government has adopted a vision to turn the domestic palm oil industry into the world’s largest palm oil producer and encourage development of the downstream palm oil industry, he stated. With land area covering 10 percent of the global land bank for vegetable oils, Indonesia is able to become the world’s largest palm oil producer and hold a 55-percent share of the global palm oil and vegetable oil market, he noted.

In addition, it will be able to produce 40 percent of the global vegetable oils that play a crucial role in the context of food security, he affirmed. “The palm oil industry contributed 15.6 percent of the total exports in 2020. Of course, the value serves as one of the foreign exchange earners that had consistently increased despite the pandemic,” he remarked.

According to data by the Coordinating Ministry for Economic Affairs, the area of national palm oil cover in 2019 had reached 15.38 million hectares, comprising smallholder palm oil plantations reaching 41 percent; state large plantations, six percent; and national private plantations, 53 percent. “The data showed that smallholder palm oil plantations contribute significantly to the development of palm oil plantations in Indonesia,” he stated. He further remarked that the smallholder palm oil plantation rejuvenation (PSR) program becomes crucial to increase productivity and strengthen human resources as well as to improve farmers’ welfare.

The program also contributes to creating jobs during the COVID-19 pandemic and eventually had a positive multiplier effect on regions, he remarked. “The PSR program is a national strategic program to increase the people’s productivity, maintain the area of plantations, and use the existing land optimally,” he stated.

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DEWAN NEGARA PRODUSEN MINYAK KELAPA SAWIT (COUNCIL OF PALM OIL PRODUCING COUNTRIES / CPOCC) HARUS MENGGUNAKAN TEKNOLOGI TERBARU UNTUK MELAWAN PROPAGANDA ANTI MINYAK KELAPA SAWIT

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AKARTA — Strategi-strategi yang dirancang untuk menyanggah mitos seputar minyak kelapa sawit harus memanfaatkan kemajuan teknologi saat ini, termasuk platform siber di mana berita menyebar dengan cepat, kata Menteri Industri dan Komoditas Perkebunan Malaysia, Datuk Zuraida Kamaruddin.

Oleh karena ini, organisasi seperti Council of Palm Oil Producing Countries (CPOPC) perlu lebih menekankan pada informasi yang mudah dicerna dan ringkas sebagai narasi dan grafik untuk mengubah persepsi, katanya. “Propaganda terhadap minyak kelapa sawit telah berubah menjadi lebih serius, dan ia merupakan sesuatu yang harus CPOPC lawan dengan cara yang lebih efektif,” katanya kepada wartawan setelah memimpin Pertemuan Kementerian ke-9 di CPOPC. Pertemuan tersebut, dipimpin juga oleh Menteri Koordinasi Perekonomian Airlangga Hartarto, juga dihadiri secara virtual oleh pejabat dariKolombia, Papua New Guinea, Honduras dan Ghana dalam kapasitas mereka sebagai negara pengamat.

Dalam pertemuan tersebut, Zuraida mengungkapkan keprihatinannya terhadap sentimen kampanye anti minyak kelapa sawit, yang telah disorot dari waktu ke waktu oleh berbagai pihak. “Ini merupakan fakta yang diketahui bahwa kelapa sawit sejauh ini merupakan tanaman yang lebih efisien dibandingkan dengan tanaman penghasil minyak lainnya,” tegasnya.

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Airlangga juga mengutarakan sentimen yang sama saat ia mencermati tren kebijakan diskriminatif yang berkembang terhadap minyak kelapa sawit yang merugikan perkembangan sektor minyak kelapa sawit. “CPOPC harus mempertahankan peran pentingnya dalam mendukung dan menjaga kepentingan bersama anggotanya di sektor minyak kelapa sawit,” katanya, menambahkan bahwa Indonesia memperkirakan nilai ekspor minyak kelapa sawitnya melonjak 155 persen setiap tahunnya menjadi US$29 milyar di tahun 2021.

Sementara itu, Zuraida mendesak CPOPC, sebagai dewan yang mendorong keterlibatan dalam pengembangan industri minyak kelapa sawit berkelanjutan secara global, untuk terus membantu jutaan petani kelapa sawit kecil dan pemangku kepentingan secara global. “Kami ingin mereka berkomitmen sepenuhnya terhadap keberlanjutan dan merangkum Tujuan Pengembangan Berkelanjuran milik Perserikatan Bangsa-Bangsa sesuai dengan permintaan global,” katanya.

Dalam pengembangan lainnya, Zuraida mengucapkan selamat kepada CPOPC atas keberhasilannya menyelesaikan amandemen piagamnya, yang ditandatangani oleh kedua menteri pada hari ini.

Piagam baru akan memfasilitasi penerimaan anggota baru dan negara pengamat ke dalam persaudaraan CPOPC segera.

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COUNCIL OF PALM OIL PRODUCING COUNTRIES (CPOCC) MUST USE LATEST TECHNOLOGIES TO COUNTER ANTI-PALM OIL PROPAGANDA

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AKARTA — Strategies devised to debunk myths surrounding palm oil must leverage today’s technological advancements, including the cyber platform where news travels fast, said Malaysia’s Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin.

Therefore, an organisation like the Council of Palm Oil Producing Countries (CPOPC) needs to place more emphasis on easily digestible, bite-sized information as narratives and graphics to change perceptions, she said. “The propaganda against palm oil has taken a more serious turn, and it is something CPOPC needs to counter in a more effective manner,” she told reporters after co-chairing the 9th Ministerial Meeting of CPOPC here.

The meeting, co-chaired by Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto, was also attended virtually by officials from Colombia, Papua New Guinea, Honduras and Ghana in their capacities as observer countries.

At the meeting, Zuraida expressed her concern regarding the anti-palm oil campaign sentiment, which has been highlighted from time to time by various parties. “It is a known fact that oil palm is a far more efficient crop compared to other oil-producing crops,” she stressed.

Airlangga echoed the sentiment as he noted the growing trend of discriminatory policies against palm oil that are detrimental to

Menteri Industri dan Komoditas Perkebunan Datuk Zuraida Kamaruddin.

Malaysia’s Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin.

the development of the palm oil sector. “CPOPC must maintain its pivotal role in supporting and safeguarding the collective interest of its members in the palm oil sector,” he said, adding that Indonesia expects its palm oil export value to surge 155 per cent year-on-year to US$29 billion in 2021.

Meanwhile, Zuraida urged CPOPC, as a council that encourages engagements in the development of a sustainable palm oil industry globally, to continue assisting millions of oil palm smallholders and stakeholders globally. “We want them fully committed to sustainability and encapsulating the United Nations’ Sustainable Development Goals in line with global demands,” she said.

In another development, Zuraida congratulated CPOPC for successfully completing the amendment to its charter, which was signed by both ministers today. The new charter will facilitate the admission of new members and observer countries into the CPOPC fraternity soon.

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Cargill berupaya untuk lebih memperluas fasilitas produksinya di Port Klang.

Cargill seeks to expand its production facility in Port Klang further.

CARGILL MEMBUAT INVESTASI BESAR SENILAI $35 JUTA UNTUK LOKASI PEMROSESAN BAHAN KEMBANG GULA DI MALAYSIA

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argill telah bergerak untuk lebih memperluas fasilitas manu fakturnya di Asia dengan investasi penting sebesar $35 juta untuk fasilitas produksinya di Port Klang, Malaysia, untuk lemak khusus, termasuk yang digunakan dalam pembuatan kembang gula, lapor Neill Barston.

Menurut perusahaan tersebut, perkembangan terakhirnya diharapkan menjadi langkah pertama dalam strategi multi-tahun globalnya untuk meningkatkan lokasinya, dengan total lebih dari US$100 juta yang bertujuan untuk memperluas portofolio produksinya secara keseluruhan. “Lemak khusus sangat populer karena keserbagunaan dan fungsinya,” kata Jennifer Shomenta, presiden dan pemimpin grup solusi bisnis minyak makan global Cargill. “Dengan investasi ini, kami akan berada di posisi yang lebih baik untuk mendukung perjalanan inovasi pelanggan, dilengkapi dengan komponen yang dibutuhkan untuk menciptakan solusi yang disesuaikan dengan kebutuhan unik mereka.”

Di fasilitas Malaysia, Cargill akan menambahkan kapasitas fraksinasi kelapa sawit kering, memungkinkan produksi berbagai jenis lemak untuk digunakan dalam coklat, pelapis, tambalan dan senyawa, olesan, lemak roti, dan aplikasi lainnya. Cargill juga akan lebih lanjut meningkatkan Pusat Litbang Minyak Makan Malaysia-nya, meningkatkan peralatan laboratorium dan pabrik percontohan agar dapat selaras dengan kemampuan lemak khusus baru di fasilitas Port Klang.

Proyek yang baru diumumkan datang setelah hampir peningkatan senilai $20 juta di fasilitias tersebut setahun sebelumnya, yang meningkatkan kapasitas produksinya dan menyelesaikan putaran pertama pembaruan kemampuan Litbangnya.

Secara bersama-sama, dua proyek Port Klang tersebut merupakan investasi ganda pertama yang diharapkan Cargill, yang tersebar di pabrik produksi lemak khususnya di seluruh dunia. Inisiatif bernilai lebih dari US$100 juta tersebut akan mendorong Cargill menjadi yang terdepan dalam produksi lemak khusus, dengan fasilitas mutakhir dan rantai pasokan yang andal dan berkelanjutan. “Sering sekali, merek harus menavigasi rantai pasokan yang rumit untuk mendapatkan lemak khusus mereka, membeli minyak dari satu pemasok, lalu mengirimkannya ke pihak lain untuk proses lebih lanjut,” kata Shomenta. “Melalui investasi kami di Port Klang dan di berbagai fasilitas produksi kami di seluruh dunia, kami akan menghilangkan langkah tambahan tersebut, memberikan pelanggan

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mitra tunggal, terpercaya, dan semuanya didukung oleh kemampuan teknis serta sumber daya global Cargill.”

Berbagai macam bahan yang diproduksi di pabrik Port Klang milik Cargill akan memainkan peran utama dalam profil sensorik di banyak produk, berkontribusi pada peningkatan rasa, tekstur dan rasa di mulut. Berasal dari minyak biji dan tropis, terutama lemak menawarkan berbagai atribut dari ketahanan panas, manfaat utama kembang gula yang dijual di iklim yang lebih hangat, hingga pencairan cepat untuk meningkatkan rasa di antara atribut fungsional lainnya Seperti yang dicatat oleh bisnis, bahan-bahan juga penting untuk meningkatkan profil rasa, stabilitas produk dan kebutuhan sensorik pelanggan lainnya di pasar alternatif daging dan susu. Lebih lanjut lagi, Minyak kelapa sawit Cargill yang bersumber dari rantai pasokan yang bertanggung jawab akan memungkinkan perusahaan untuk menawarkan lemak khusus yang terbuat dari minyak kelapa sawit terpisah yang disertifikasi oleh Roundtable for Sustainable Palm Oil (RSPO).

Ekspansi Port Klang diharapkan akan selesai pada akhir tahun 2023, saat itu Cargill akan mulai memasok lemak khusus kepada pelanggan di wilaya Asia Pasifik, dan produk setengah jadi ke fasilitas Cargill di Eropa, Timur Tengah, Rusia, Amerika Selatan dan Amerika Utara. Hal ini memungkinkan perusahaan untuk menawarkan lemak khusus yang beragam kepada pelanggannya di wilayahwilayah tersebut, serta memposisikan Cargill pada posisi yang kuat untuk melayani pelanggan global dan regional.

Investasi tersebut juga sejalan dengan rencana Cargill untuk memperluas jejak operasionalnya di wilayah Asia Pasifik. Pada tahun 2021, perusahaan mengumumkan niatnya untuk membangun pabrik penyulingan minyak kelapa sawit senilai $200 juta di Indonesia dan menyingkap kemitraan barunya dengan Nestle untuk mendukung petani kakao Indonesia. Investasi lain di wilayah tersebut termasuk dukungan untuk produksi kelapa berkelanjutan melalui program yang melibatkan petani kecil dengan pelatihan dan praktik pertanian yang baik serta mengembangkan komitmen konservasi masyarakat.

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CARGILL MAKES MAJOR $35 MILLION INVESTMENT IN MALAYSIAN SITE FOR CONFECTIONERY INGREDIENT PROCESSING

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argill has moved to further expand its Asian manufacturing facilities with a key investment of $35 million expansion of its production facility in Port Klang, Malaysia, for speciality fats including those used within confectionery, reports Neill Barston.

Shomenta said. “Through our investments at Port Klang and across our global processing locations, we’ll eliminate those extra steps, giving customers the convenience of a single, trusted partner, all backed by Cargill’s technical expertise and global resources.”

According to the company, its latest development is expected to form an initial step in a multi-year, global strategy of improving its sites, totalling over US$100 million aimed to significantly expanding its overall production portfolio. “Specialty fats are incredibly popular due to their versatility and functionality,” said Jennifer Shomenta, president and group leader for Cargill’s global edible oils solutions business. “With this investment, we’ll be better positioned to support our customers’ innovation journey, equipped with the building blocks necessary to co-create tailored solutions that align with their unique needs.”

The broad range of ingredients produced at Cargill’s Port Klang plant will play starring roles in the sensory profiles of many products, contributing to their improved taste, texture and mouthfeel. Derived from seed and tropical oils, specialty fats offer a wide range of attributes from heat resistance, a key benefit for confections sold in warmer climates, to quick meltdown for enhanced flavour release amongst other functional attributes.

At the Malaysian facility, Cargill will install dry palm fractionation capacity, enabling the production of a range of specialty fats for use in chocolates, coatings, fillings and compounds, spreads, bakery fats, and other applications. Cargill will also further upgrade its Malaysia Edible Oils R&D Center, enhancing lab equipment and pilot plants to align with the Port Klang facility’s new specialty fat capabilities.

The newly announced project comes on the heels of a nearly complete $20 million upgrade to the facility begun just one year prior, which enhanced the site’s production capacity and completed a first round of updates to its R&D capabilities.

Taken together, these two Port Klang projects are the first of what Cargill expects to be multiple investments, spread across its specialty fat production plants around the globe. The more than US$100-million initiative will thrust Cargill to the forefront of specialty fats production, with state-of-the-art facilities and a reliable, end-to-end sustainable supply chain. “All too often, brands must navigate complicated supply chains to procure their specialty fats, purchasing oil from one supplier, then shipping it to others for further processing,”

As the business noted, ingredients are also key to improving flavour profile, product stability and other sensory needs of customers in the rapidly growing meat and dairy alternatives market.

Further, Cargill’s responsibly sourced palm oil supply chain will make it possible for the company to offer specialty fats made from segregated palm oil certified by the Roundtable for Sustainable Palm Oil (RSPO). The Port Klang expansion is expected to be complete in late 2023, at which time Cargill will begin supplying finished specialty fats to customers throughout the Asia Pacific region, and semi-finished products to Cargill facilities in Europe, Middle East, Russia, South America and North America.

This will enable the company to offer its expanded specialty fat range to customers in those regions as well, putting Cargill in a strong position to serve global and regional customers alike.

The investment also aligns with Cargill’s plans to expand its operational footprint across the Asia Pacific region. In 2021 alone, the company announced its intent to build a $200 million palm oil refinery in Indonesia and unveiled a new partnership with Nestle to support Indonesian cocoa farmers. Other investments in the region include support for sustainable coconut production through programs that engage smallholder farmers with training on good agricultural practices and develop community conservation commitments.

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PABRIK SOLAR TERBARUKAN BERBASIS MINYAK KELAPA SAWIT PERTAMA AKAN DIBANGUN DI BRAZIL

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rodusen minyak kelapa sawit Brazil Biofuels (BBF) dan Vibra Energia, distributor bahan bakar utama di Brazil, memasuki kesepakatan untuk membuka konstruksi pabrik minyak nabati yang diolah dengan hidrogen (hydrotreated vegetable oil / HVO) pertama dalam negeri, media lokal melaporkan.

BBF akan menginvestasikan BRL1,8 miliar ($323 juta) di unit terbaru yang akan menggunakan minyak kelapa sawit sebagai bahan baku, daripada minyak kedelai yang biasanya melimpah di negara tersebut, dan diharapkan mulai beroperasi pada tahun 2025 di zona bebas pajak di kota Manaus, negara bagian Amazona.

Penggunaan minyak kelapa sawit sebagai bahan baku kontroversial dalam bahan bakar hayati karena perannya yang disebutkan dalam perubahan fungsi lahan dan deforestasi di negara tropis.

Mengingat hal itu, komoditas yang digunakan dalam bahan bakar hayati FAME dan HVO akan dibatasi di Eropa mulai tahun 2023 dan diperkecil sebelum larangan langsung pada tahun 2030, sementara tanaman yang disalahkan atas deforestasi ditargetkan dalam komitmen internasional yang diumumkan baru-baru ini pada konferensi iklim PBB, COP26.

Di bawah kesepakatan tersebut, Vibra Energia akan mengkomersialkan seluruh hasil pabrik yang akan memiliki kapasitas awal untuk memproduksi 500 juta liter minyak kelapa sawit berbasis HVO per tahun. “Vibra telah dihubungi oleh pelanggan seperti industri pertambangan dan pertanian yang me,butuhkan solar untuk mengoperasikan rantai pasokan merekan dan memiliki agenda dekarbonisasi,” kata direktur eksekutif operasional Vibra, Marcelo Bragança kepada koran bisnis lokal Valor Econômico Tpada hari Selasa.

Brazil sedang mempertimbangkan apakah akan menetapkan mandat 2% HVO dalam campuran bahan bakar hayati Brazil, tetapi menurut Bracanga, bahkan tanpa mandat, prospeknya menguntungkan untuk permintaan HVO dalam negeri.

HVO dianggap lebih hemat emisi dibandingkan solar biasa, dan dapat digunakan secara langsung pada mesin bertenaga solar atau dicampur pada tingkat apapun dengan solar berbasis fosil. Tetapi penggunana minyak kelapa sawit dan minyak kedelai dalam HVO, yang djuga dikenal sebagai solar terbarukan, telah lama menjadi target kelompok lingkungan – terutama di negara yang telah dirusak oleh deforestasi yang meluas dan perubahan penggunaan lahan.

BBF mengatakan bahwa ia akan mengambil minyak kelapa sawit dari unitnya di utara Brazil serta dari 10 area baru yang telah dipetakan perusahaan tersebut di wilayah Amazon. Namun HVO disebut-sebut sebagai bahan bakar ramah lingkungan oleh produsen, dan BFF mengatakan bahwa perkebunan kelapa sawit akan berada di lahan yang patuh pada ‘zona kelapa sawit’ yang dikatakan hanya mengizinkan penanaman kelapa sawit di area yang gundul sebelum tahun 2007.

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Sebuah kesepakatan antara Brazil Biofuels (BBF) dan Vibra Energia untuk pabrik solar terbarukan berbasis minyak kelapa sawit Brazil An agreement between Brazil Biofuels (BBF) and Vibra Energia for Brazil’s first palm oil based renewable diesel plant

FIRST PALM OIL BASED RENEWABLE DIESEL PLANT TO BE BUILT IN BRAZIL

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alm oil producer Brazil Biofuels (BBF) and Vibra Energia, the main fuel distributor in Brazil, entered an agreement to unlock the construction of the first hydrotreated vegetable oil (HVO) plant in the country, local media has reported.

BBF will invest BRL1.8 billion ($323 million) in the new unit that will use palm oil as feedstock, rather than the country’s usually-abundant supplies of soyoil, and is expected to start operations by 2025 in the tax-free zone of the city of Manaus in Amazonas state.

The use of palm oil is a highly controversial feedstock in biodiesel because of its cited role in land-use change and deforestation in tropical countries.

In view of that, the commodity’s use in both FAME biodiesel and HVO will be capped in Europe from 2023 and scaled-down before an outright ban in 2030, while crops blamed for deforestation were targetted in international commitments announced at the recent COP26 UN climate conference.

Under the agreement, Vibra Energia will commercialise the whole output of the plant that will have an initial capacity to produce 500 million litres the palm oil-based HVO per year. “Vibra has been contacted by clients such as the mining and agribusiness industries that need diesel to operate their supply chains and that have a decarbonisation agenda,” Vibra’s executive operations director Marcelo Bragança told the local business newspaper Valor Econômico Tuesday.

Brazil is considering whether to set a 2% HVO mandate in Brazil’s biodiesel mixture but, according to Bragança, even without the mandate the outlook is favourable for HVO demand in the country.

HVO is considered less emissions-intensive than regular diesel, and can be used directly in diesel-fuelled engines or blended at any rate with fossil-based diesel. But the use of palm oil and soyoil in HVO, also known as renewable diesel, has long been targetted by environmental groups - particularly in countries that have been ravaged by widespread deforestation and land-use change.

BBF said it will source palm oil from its units in the north of Brazil as well as from 10 new areas that the company has mapped in the Amazon region. Yet the HVO is touted as a green fuel by producers, and BBF said the palm plantations would be on land subject to ‘palm oil zoning’ that is said to only permit the planting of palms on areas deforested before 2007.

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Pekerja minyak kelapa sawit Nigeria sedang bekerja Nigerian palm oil workers at work

PEMERINTAH FEDERAL NIGERIA DAN NEGARA BAGIAN DIDESAK UNTUK MEMPRIORITASKAN PRODUKSI MINYAK KELAPA SAWIT

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emerintah Federal dan negara bagian didesak untuk memprioritaskan produksi minyak kelapa sawit untuk menyelamatkan perekonomian dan negara dari krisis ekonomi global pada saat ini. Direktur Utama Wamak Oil Ltd, Olawale Makinde, baru-baru ini menyampaikan seruan ini saat berbicara dengan The Guardian di Akure, menambahkan bahwa hanya beberapa orang yang sadar bahwa minyak kelapa sawit memiliki manfaat ekonomi yang lebih besar dibandingkan minyak mentah.

“Selama bertahun-tahun tidak diketahui oleh banyak orang, minyak kelapa sawit selalu lebih mahal dibandingkan bensin, dan permintaannya selalu meningkat.”

“Pada tahun 2019, Gubernur Bank Sentral Nigeria (Central Bank of Nigeria / CBN), Godwin Emefiele, mendesak semua orang untuk memerhatikan minyak kelapa sawit karena ia lebih mahal dibandingkan minyak mentah di pasar global.”

“Minyak kelapa sawit sangat serbaguna; ia tidak hanya digunakan untuk memasak tetapi juga digunakan secar industrial dalam produk kosmetik, bahan bakar hayati, produk kebersihan, sabun dan produk perawatan rambut.”

“Kini, bensin 25 liter seharga N4.125 sementara 25 liter minyak kelapa sawit bernilai lebih dari N18.000. Marginnya tidak tertandingi. Satu barel minyak kelapa sawit saat ini bernilai di atas N108.000 sementara satu barel minyak mentah bernilai di bawah N32.000.”

“Konsumsi minyak kelapa sawit di Nigeria masih relatif rendah dan pemerintah masih pemerintah masih menghabiskan $500 juta per tahun dalam impor minyak kelapa sawit untuk memenuhinya. Hal ini menandakan bahwa pasarnya lebih besar dari yang Anda bayangkan.”

“Dan juga, ada tanggapan global terhadap penggunaan minyak mentah yang berlebihan untuk melawan pemanasan global dengan menggantikannya dengan bahan bakar hayati, baterai, tenaga surya, tenaga air dan sebagainya, tetapi untuk minyak kelapa sawit, permintaannya lebih tinggi secara global dan hal ini tidak akan pernah menurun.”

www.indopalmoil.com

NIGERIA’S FEDERAL GOVERNMENT AND STATES URGED TO PRIORITIZE PALM OIL PRODUCTION

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he Federal Government and states have been urged to prioritise palm oil production to salvage the economy and save the country from present global economic crisis. The Chief Executive Officer of Wamak Oil Ltd, Olawale Makinde, made this appeal recently while speaking with The Guardian in Akure, adding that only few people were aware that palm oil has larger economic benefits than crude oil.

“Over the years, unknown to many, palm oil has always been more expensive than petrol, and the demand has always been on the increase.”

“In 2019, the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, urged everyone to pay attention to palm oil as it is way more expensive than crude oil in the global market.”

“Palm oil is very versatile it’s not only used in cooking but also used industrially as cosmetics, bio-fuel, cleaning products, soaps and for hair care products.”

“Currently, a 25-litre keg of petrol is N4,125 while 25-litre of palm oil is over N18,000. The margin is incomparable. The current barrel of palm oil is over N108,000 while a barrel of crude oil is below N32,000.”

“The consumption of palm oil in Nigeria is still relatively low and the government still spends over $500 million yearly in palm oil importation to meet up. This tells you that the market is larger than you can imagine.”

“Also, there is a global response against the excessive use of crude oil to counter global warming by replacing it with bio-fuel, batteries, solar power, hydro power and so on, but as for palm oil, there has been higher demand globally and this can never drop.”

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EMPAT NEGARA AKAN BERGABUNG DENGAN CPOPC SEBAGAI ANGGOTA PENUH PADA BULAN MEI 2022, KATA DIREKTUR EKSEKUTIF

Logo CPOPC CPOPC’s logo

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AKARTA: Kolombia, Ghana, Honduras, dan Papua Nugini ditetapkan menjadi anggota penuh Dewan Negara Penghasil Minyak Kelapa Sawit (Council of Palm Oil Producing Countries / CPOPC) pada akhir bulan Mei tahun depan di tengah meningkatnya klaim bahwa minyak kelapa sawit berdampak buruk pada lingkungan.

Negara-negara tersebut akan secara otomatis menjadi anggota penuh setelah mereka meratifikasi Piagam CPOPC dan Protokol untuk Mengubah Piagam, menurut direktur eksekutif CPOPC, Tan Sri Dr Yusof Basiron. “Saya berharap dalam enam bulan mereka harus bisa memperbaiki,” katanya pada Bernama.

FOUR COUNTRIES SET TO JOIN CPOPC AS FULL MEMBERS IN MAY 2022, SAYS EXECUTIVE DIRECTOR

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AKARTA: Colombia, Ghana, Honduras, and Papua New Guinea are set to become full members of the Council of Palm Oil Producing Countries (CPOPC) by May next year amid growing claims that palm oil negatively impacts the environment.

These countries will automatically become full members once they ratify the CPOPC Charter and the Protocol to Amend the Charter, according to CPOPC’s executive director Tan Sri Dr Yusof Basiron. “I expect within six months they should be able to rectify,” he told Bernama.

Dia mengatakan anggota baru akan memperkuat suar kolektif untuk memprotes ketidakadilan Uni Eropa terhadap industri. “Dengan adanya mereka sebagai anggota CPOPC, suaranya lebih besar dan, mudah-mudahan lebih berdampak,” kata Yusof, yang berada di Jakarta, Indonesia untuk Pertemuan Kementerian CPOPC kesembilan pada hari Sabtu.

He said the new members will strengthen the collective voice to protest about the European Union’s unfair treatment of the industry.

“By having them as members of CPOPC, the voice is bigger and, hopefully, more impactful,” said Yusof, who was in Jakarta, Indonesia for the ninth Ministerial Meeting of CPOPC held on Saturday.

Pertemuan tersebut dipimpin oleh Menteri Industri Perkebunan dan Komoditas Malaysia Datuk Zuraida Kamaruddin dan mitranya dari Indonesia Airlangga Hartanto. Konferensi tersebut juga dihadiri oleh pejabat dari Kolombia, Ghana, Honduras dan Papua Nugini dalam kapasitas mereka sebagai negara pengamat.

The meeting was co-chaired by Malaysian Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin and her Indonesian counterpart Airlangga Hartanto. It was also attended virtually by officials from Colombia, Ghana, Honduras, and Papua New Guinea in their capacities as observer countries.

Yusof mengatakan bahwa negara pengamat akan berusaha sebaik mungkin untuk mempercepat proses ratifikasi sebagai langkah akhir sebelum diterima sebagai anggota penuh. Kolombia, Honduras, dan Papua Nugini menekankan pentingnya bekerja sama untuk mempromosikan kepentingan bersama dan mempertahankan industri dari sentimen dan tuduhan negatif yang terus menerus.

Yusof said the observer countries would do their best to speed up the ratification process as the last steps before being admitted as full members. Colombia, Honduras, and Papua New Guinea emphasised the importance of working together to promote common interests and defend the industry against persistent negative sentiments and allegations.

Yusof menjelaskan bahwa Honduras menekankan bahwa negara-negara produsen yang harus menuntut perlakuan yang lebih adil untuk minyak kelapa sawit yang diproduksi secara berkelanjutan.

Sementara itu, Papua Nugini menegaskan kembali bahwa produsen harus memiliki kesatuan suara dalam isu-isu berkelanjutan, dan Kolombia mendukung kampanye promosi, penelitian dan studi. “Malaysia dan Indonesia menegaskan kembali komitmen mereka untuk memastikan harga tinggi dan menarik pada tahun 2022 melalui berbagai langkah dan tindakan terkoordinasi di tingkat CPOPC,” katanya.

Yusof elaborated that Honduras stressed that producing countries had to demand fairer treatment for sustainably produced palm oil. Meanwhile, Papua New Guinea reiterated that the producers should have a united voice on sustainability issues, and Colombia supported the promotional campaigns, research, and studies. “Malaysia and Indonesia reiterated their commitment to ensuring a high and attractive price in 2022 through various measures and coordinated actions at the CPOPC level,” he said.

Prioritas dewan yang akan segera dilaksanakan termasuk perluasan keanggotaan, penerimaan kerangka global untuk minyak sawit berkelanjutan, dan forum pemangku-pemangku kepentingan global.

“CPOPC dengan kerjasama Indonesia, pada masa kepresidenan negara pada pertemuan Kelompok 20 (G20), akan mempromosikan minyak kelapa sawit berkelanjutan,” kata Yusof.

Indonesia telah sepakat untuk kembali menjadi tuan rumah Pertemuan Kementerian ke-10 tahun depan. Perekonomian terbesar Asia Tenggara itu memulai kepresidenan G20 selama setahun pada 1 Desember 2021.

The council’s priorities to be implemented soon include membership expansion, acceptance of the global framework for sustainable palm oil, and a global multi-stakeholder forum. “CPOPC with the cooperation of Indonesia, during the presidency of the country at the Group of 20 (G20) meetings, will leverage to promote sustainable palm oil,” Yusof said.

Indonesia has agreed to once again host the 10th Ministerial Meeting next year. The largest economy in Southeast Asia kicked off its year-long G20 presidency on Dec 1, 2021.

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Palm Oil Today Indonesia

January - March 2022

PRAKIRAAN PRODUKSI MINYAK KELAPA SAWIT 2022 OLEH ANALIS TERKEMUKA PALM OIL PRODUCTION FORECAST 2022 BY LEADING ANALYSTS

Dorab Mistry, Direktur, Godrej International Ltd Dorab Mistry, Director, Godrej International Ltd

Dr James Fry, Chairman, LMC International Dr James Fry, Ketua , LMC International

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asokan global minyak kelapa sawit akan melihat “pertumbuhan minimal” pada periode 2019 – 2022, dikarenakan ma salah produksi yang disebabkan oleh cuaca yang tidak mendukung dan gangguan pekerja di Malaysia, kata analis terkemuka, James Fry pada hari Kamis. “Ia akan memakan waktu 12 tahun lagi sebelum hasil minyak kelapa sawit Asia Tenggara melebihi tingkatannya pada akhir tahun 2019,” kata Fry, meskipun peningkatan hasil diharapkan dari Indonesia pada pertengahan tahun depan. “Dengan kata lain, saya mengantisipasi tiga tahun penuh tanpa adanya pertumbuhan,” katanya dalam konferensi virtual.

Produksi minyak kelapa sawit Malaysia juga diharapkan akan pulih sebelum bulan puasa Muslim di bulan Ramadan, atau bulan Mei tahun depan, kata analis terkemuka, Dorab pada konferensi virtual di hari Kamis. Hal ini karena akan memakan waktu untuk merasakan dampak dari aturan yang longgar yang memungkinkan pekerja baru di perkebunan Malaysia dapat dirasakan.

Mistry mengatakan bahwa produksi kelapa sawit Malaysia tahun ini kemungkinan akan berada di 18 juta ton “Paling tinggi”, dan meningkat ke 19 juta ton tahun depan.

Hasil dari produsen utama Indonesia, saat ini diperkirakan setidaknya naik 1 juta ton tahun depan, kata Mistry. Mulai sekarang hingga Februari 2022, harga acuan minyak kelapa sawit Malaysia diperkirakan akan diperdagangkan antara RM5.000 – 5.400 per ton.

Harga akan turun menjadi antara RM4.800 – 4.000 di periode April – September tahun depan, kata Mistry.

www.indopalmoil.com

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he global supply of palm oil will see only “minimal growth” in the 2019-2022 period, due to production issues caused by unfavourable weather and labour disruption in Malaysia, leading analyst James Fry said on Thursday. “It will take another 12 months before Southeast Asian palm oil output is running ahead of its level at the end of 2019,” Fry said, despite improved output expected out of Indonesia in the second half of next year. “In other words, I anticipate three full years with no growth,” he told a virtual conference.

Malaysia’s palm oil production is also only expected to recover after the Muslim fasting month of Ramadan, or by May next year, leading analyst Dorab Mistry told a virtual conference on Thursday.

This is because it will take some time for the impact of relaxed rules allowing new workers in Malaysian plantations to be felt.

Mistry said that Malaysia’s palm production this year will likely stand at 18 million tonnes “at best”, and rise to 19 million tonnes next year.

Output by top producer Indonesia, meanwhile, is seen up by at least 1 million tonnes next year, Mistry said. From now until February 2022, Malaysian benchmark palm oil prices are expected to trade between RM5,000-5,400 per tonne. Prices should drop to between RM4,800-4,000 in the April-September period of next year, Mistry said.

Palm Oil Today Indonesia

January - March 2022

COVER STORY

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Traktor yang membawa tandan buah segar kelapa sawit di India A tractor carrying Palm oil fruit bunches in India

NAMA-NAMA BESAR DI INDUSTRI MINYAK KELAPA SAWIT INDIA SEDANG MENOREHKAN RENCANA UNTUK EKSPANSI PERKEBUNAN MINYAK KELAPA SAWIT

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ama-nama besar di industri minyak kelapa sawit India sedang menorehkan rencana ekspansi perkebunan dan pengolahan minyak kelapa sawit, didorong oleh langkah pemerintah untuk meningkatkan produksi biji minyak dan mengurangi ketergantungan negara pada impir untuk kebutuhan minyak makannya.

direkturnya mengatakan, “Jika pemerintah negara bagian menerapkan skema baru untuk mengunci secara keseluruhan, dan baik pemerintah pusat maupun negara bagian memenuhi kewajiban tersebut, baru kami dapat menginvestasikan Rs 500 crore hingga Rs 600 crore selama ekspansi dalam 5 hingga 6 tahun ke depan untuk perluasan budidaya kelapa sawit.”

Dari empat perusahaan utama di sektor tersebut, dua perusahaan terbesar - Godrej Agrovet dan 3F Oil Palm — sedang mempertimbangkan untuk menginvestasikan Rs 500 crore selama lima tahun ke depan untuk ekspansi budidaya kelapa sawit, setelah pemerintah pada awal bulan ini mengatakan bahwa Rs 11.000 crore akan diinvestasikan di bawah Misi Minyak Makan Nasional – Kelapa Sawit untuk meningkatkan produksi minyak nabati.

Di bawah skema promosi kelapa sawit yang ada, Godrej secara konsisten telah memperluas perkebunannya. “Di bawah skema lama yang ada, Godrej telah menambah sekitar 3.000 hingga 4.000 hektar perkebunan kelapa sawit setiap tahun. Ini menandakan adanya investasi sekitar Rs 150 crore dalam rentang waktu 3 hingga 4 tahun untuk mendirikan pabrik untuk memroses kelapa sawit,” kata Yadav.

“Budidaya kelapa sawit merupakan industri butik di India, karena hambatan untuk masuk dan periode penanaman yang lama,” kata Sanjay Goenka, presiden Asosiasi Pengembang dan Pemroses Kelapa Sawit. “Perusahaan besar yang juga memiliki perkebunan kelapa sawit termasuk 3F Oil Palm Agrotech.

Goenka juga merupakan ketua eksekutif 3F Oil Palm, yang kini berencana untuk memperluas perkebunan kelapa sawit perusahaannya. “Berkat kebijakan baru, 3F Oil Palm berencana untuk menginvestasikan Rs 500 crore dalam lima tahun ke depan, dengan fokus pada Arunachal Pradesh, Karnataka dan Andhra Pradesh,” kata Goenka. “Arunachal Pradesh memiliki potensi besar. Assam juga memiliki potensi baik. Perkebunan the besar dari negara bagian tersebut sekarang mulai ditanami kelapa sawit.

Bisnis kelapa sawit perusahaan tersebut di Andhra Pradesh kini sudah positif tunai, sementara negara bagian seperti Gujarat, Karnataka, Chhattisgarh dan Mizoram, perusahaan belum memulai pemrrosesan kelapa sawit, karena produksinya belum mencapai tingkat yang memadai.”

Ruchi Soya, dalam hasil kuartal pertamanya, mengatakan bahwa perusahaan siap untuk mendapatkan tambahan dengan skema baru. Perusahaan memiliki lahan sebesar 2.9 lakh hektar yang dialokasikan untuk kelapa sawit dan hampir 54.000 hektar di sembilan negara bagian yang ditanami kelapa sawit.

Industri kelapa sawit India kini bersiap untuk memposisikan minyak kelapa sawit sebagai pilihan yang sehat bagi konsumen.

Goenka dari 3F Oil Palm, mengatakan, ”Ini merupakan agenda barat menyebut minyak kelapa sawit tidak sehat karena tanaman tersebut hanya dapat tumbuh di iklim tropis, yang berarti negara maju harus bergantung pada negara berkembang.”

Dalam interaksi baru-baru ini dengan ET, guru yoga Baba Ramdev mengatakan bahwa rencana Ruchi Soya untuk meluncurkan minyak kelapa sawit murni sebagai minyak “lebih sehat” daripada minyak zaitun, yang ia klaim dapat membantu “mengatasi banyak kekurangan nutrisi”

Bagaimanapun, Godrej Agrovet, telah mengambil langkah yang lebih hati-hati terkait kebijakan terbaru. Balram Yadav, presiden

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Palm Oil Today Indonesia

January - March 2022

Godrej mendistribusikan 4.000 bibit pohon pada hari Lingkungan Hidup Sedunia Godrej distributed 4000 saplings on World Environment day

BIG NAMES IN INDIA’S PALM OIL INDUSTRY ARE CHALKING OUT PLANS FOR EXPANSION OF PALM OIL PLANTATION

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he big names in India’s palm oil industry are chalking out plans for expansion of oil palm plantation and processing, encouraged by the government’s move to boost oilseed production and reduce the country’s reliance on imports for its cooking oil needs.

Of the four main companies in this sector, the leading two-Godrej Agrovet and 3F Oil Palm—are considering investing about Rs 500 crore each over the next five years for expansion of oil palm cultivation, after the government earlier this month said Rs 11,000 crore will be invested under the National Edible Oil Mission--Oil Palm to boost oilseed production.

“Oil palm cultivation is a boutique industry in India due to entry barriers and long gestation period,” Sanjay Goenka, president of Oil Palm Developers and Processors Association, said. “The top companies having oil palm plantations include 3F Oil Palm Agrotech Goenka is also chief executive of 3F Oil Palm, which now plans to expand the company’s oil palm plantation. “Thanks to the new policy, 3F Oil Palm plans to invest about Rs 500 crore during the next five years, with focus on Arunachal Pradesh, Karnataka and Andhra Pradesh,” said Goenka. “Arunachal Pradesh has humongous potential. Assam too also has good potential.

Large tea estates from these states are now coming up for palm cultivation. The company’s oil palm business in Andhra Pradesh is now cash positive, while in states like Gujarat, Karnataka, Chhattisgarh and Mizoram, the company has not yet started processing of oil palm, as the production is yet to increase to sufficient levels.”

Godrej Agrovet, however, has taken a cautious approach about the new policy. Balram Yadav, its managing director, said, “In case the state governments implement the new scheme lock stock and barrel, and both the central and the state governments fulfil their obligations under the scheme, only then we can invest Rs 500 crore to Rs 600 crore during next 5 to 6 years for expansion of oil palm cultivation.”

www.indopalmoil.com

Under the existing scheme of oil palm promotion, Godrej has been consistently expanding its plantation. “Under the existing old scheme, Godrej Agrovet has been adding around 3,000 hectares to 4,000 hectares annually of oil palm plantation. This implies an investment of about Rs 150 crore in a span of 3 to 4 years for setting up a factory to process the oil palm,” said Yadav.

Ruchi Soya, in its first-quarter results, said the company is poised to get a fillip under the new scheme. The company has 2.9 lakh hectares land allocated to oil palm and almost 54,000 hectares across nine states under oil palm cultivation.

India’s palm oil industry is now gearing up to position palm oil as a healthy option for consumers.

Goenka of 3F Oil Palm, said, “It is western agenda to call palm oil unhealthy as the plant can grow only in the tropical climates, which means the developed countries have to depend upon the developing countries.”

In a recent interaction with ET, yoga guru Baba Ramdev had said that Ruchi Soya plans to launch virgin palm oil as an oil “healthier” than olive oil, which he claimed can help “overcome many nutritional deficiencies”

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INDONESIA AKAN MENINGKATKAN UPAYA BAHAN BAKAR HAYATI UNTUK MEMENUHI TARGET RAMAH LINGKUNGAN, KATA SEORANG PEJABAT

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AKARTA - Indonesia perlu meningkatkan kandungan hayati dalam bahan bakar hayati berbasis kelapa sawitnya menjadi 40% pada tahun 2024 atau beresiko kehilangan target energi terbarukannya, kata seorang pejabat senior pada hari Rabu.

Kementerian energi Indonesia sebelumnya mengatakan pada hari Rabu bahwa mereka akan meningkatkan alokasi bahan bakar hayati tahun 2021 untuk memenuhi permintaan yang lebih tinggi akan bahan bakar tersebut.

Indonesia memiliki program wajib bahan bakar hayati dengan konten 30% minyak kelapa sawit yang dikenal dengan nama B30.

Rencana lama untuk meningkatkan kandungan kelapa sawit menjadi 40$ pada tahun 2021 telah tertunda karena biaya bahan bakar yang lebih murah dan rekor harga kelapa sawit yang tinggi.

Sementara konsumsi bahan bakar hayati tahun depan akan melonjak menjadi lebih dari 10 juta kiloliter. Sementara harga bahan bakar mencapai titik terendah selama pandemi global, harga bensin dan solar di SPBU di Asia dan Eropa mencapai rekor tertinggi tahun ini, menjadikan kelapa sawit sebagai bahan baku yang lebih menarik bagi bahan bakar hayati.

Indonesia memungut cukai untuk membiayai program minyak kelapa sawitnya, termasuk subsidi program penanaman kembali petani kecil. Ini meningkatkan cukai minyak kelapa sawit mentahnya ke rekor tertinggi tahun ini, dan diestimasikan akan memungut cukai sebanyak 71 triliun Rupiah ($ 4,95 milyar) tahun ini, kata presiden direktur agensi pengumpul dana, Eddy Abdurrachman.

“(Hanya) Penggunaan B30 tidak akan mencapai target RUEN pada tahun 2025,” kata Dadan Kusdiana, direktur jenderal kementerian energi pada sebuah konferensi virtual.

Dia mengacu pada tujuan Indonesia untuk meningkatkan penggunaan energi terbarukan menjadi 23% dari total konsumsi energi pada tahun 2025, yang membutuhkan konsumsi bahan bakar hayati sebesar 13,9 kiloliter pada tahun tersebut.

“Kementerian akan menyiapkan regulasi wajib pencampuran B40 untuk memastikan kepastian investasi,” kata Dadan, seraya menambahkan bahwa diperlukan lebih banyak studi dan uji coba.

Indonesia juga diproyeksikan akan menghabiskan 75% lebih banyak untuk program bahan bakar hayatinya di tahun 2021, 49 triliun Rupiah dibandingkan 28 triliun Rupiah pada tahun lalu, tambahnya. ($1 USD = 14,340.0000 rupiah)

Sebuah tanda menunjukkan bahan bakar hayati di Pertamina A sign displaying biodiesel in Pertamina

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INDONESIA TO RAMP UP BIODIESEL EFFORTS TO MEET GREEN ENERGY TARGETS, OFFICIAL SAYS AKARTA - Indonesia will need to increase the bio-content of its palm oil-based biodiesel to 40% by 2024 or risk missing its renewable energy targets, a senior official said on Wednesday.

Indonesia’s energy ministry earlier on Wednesday said it will increase its 2021 biodiesel allocation to meet higher demand for fuel.

Indonesia has a mandatory biodiesel programme with 30% palm oil content known as B30. Longstanding plans to increase the palm content to 40% by 2021 were delayed due to cheaper fuel costs and record high palm prices.

Next year’s biodiesel consumption meanwhile, is set to jump to over 10 million kilolitres. While fuel prices bottomed out during the thick of the global pandemic, petrol and diesel prices at the pump in Asia and Europe reached near-record peaks this year, making palm a more attractive feedstock for biofuels. read more Indonesia collects levies to help finance its palm oil programmes, including biodiesel subsidies and smallholder replanting programmes. It increased its crude palm oil levies to record highs this year, and is estimated to collect as much as 71 trillion rupiah ($4.95 billion) in levies this year, said president director of the fund collection agency, Eddy Abdurrachman.

“The use of (only) B30 will not achieve the RUEN target for 2025,” Dadan Kusdiana, the director general of the country’s energy ministry, told a virtual conference.

He was referring to Indonesia’s goal to increase renewable energy use to 23% of its total energy consumption by 2025, which required biodiesel consumption of 13.9 kilolitres that year.

“The ministry will prepare B40 blending mandatory regulation to ensure investment certainty,” Dadan said, adding that more studies and road tests were required.

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Indonesia is also projected to spend 75% more on the biodiesel programme in 2021, with 49 trillion rupiah compared to 28 trillion rupiah last year, he added. ($1 USD = 14,340.0000 rupiah)

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Sebuah kilang minyak di Indonesia A refinery in Indonesia

UE MELIHAT KONSUMSI BAHAN BAKAR HAYATI

MENURUN PADA TAHUN 2031, DAN IMPOR MINYAK KELAPA SAWIT MEROSOT EU SEES BIOFUEL CONSUMPTION

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FALL BY 2031, PALM OIL IMPORTS SLUMP

ARIS – Konsumsi bahan bakar hayati di Uni Eropa diprediksikan akan menurun pada tahun 2031 karena transportasi darat akan beralih dari bahan bakar fosil, sementara itu impor minyak kelapa sawit merosot, dikarenakan ketatnya peraturan lingkungan, kata Komisi Eropa pada hari Kamis.

Dalam Rangkuman Pertanian tahun 2021 – 2031, Komisi tersebut memproyeksikan penggunaan bahan bakar hayati EUE akan menurun 24% menjadi 14,3 milyar liter pada tahun 2031 setelah mencapai puncaknya sebesar 18,9 milyar liter di tahun 2023. Penggunaan bioetanol tidak akan terlalu terpengaruh karena ia juga memiliki aplikasi selain bahan bakar, tetapi ia tetap akan menurun 10% menjadi 6,4 milyar liter pada tahun 2031 setelah mencapai 7,1 milyar liter pada tahun 2023.

Penurunan bahan bakar hayati sebagian besar akan mempengaruhi penggunaan minyak kelapa sawit karena kriteria keberlanjutan yang lebih ketat, sementara penggunaan minyak biji rapa diperkirakan akan tetap stabil, mewakili sekitar setengah dari bahan baku bahan bakar hayati, katanya.

Di bawah arahan energi energi terbarukan UE, bahan bakar berbasis minyak kelapa sawit akan dihapus secara bertahap pada tahun 2030, karena minyak kelapa sawit telah diklasifikasikan oleh blok tersebut sebagai penyebab deforestasi yang berlebihan, sebuah langkah yang menimbulkan protes dari dua produsen kelapa sawit terbesar di dunia, Malaysia dan Indonesia.

Impor minyak kelapa sawit di UE diperkirakan akan menurun 4 juta ton pada tahun 2031, dari sebelumnya 6,5 juta ton di tahun 2021, di mana sebagian penurunan diakibatkan oleh penurunan permintaan bahan bakar hayati, kata Komisi.

UE diperkirakan akan tetap menjadi pengimpor bahan bakar hayati, tetapi bahan bakar hayati juga kemungkinan besar akan dibatasi oleh bea masuk dengan mengimbangi bea masuk dari Argentina dan Indonesia. Dalam produksi etanol, Komisi tersebut mengharapkan jagung tetap menjadi bahan baku utama, dengan pangsa pasar sekitar 44% sementara penggunaan gandum akan turun dan sereal lainnya serta bit gula relaitf akan tetap stabil.

P

ARIS - Biofuel consumption in the European Union is set to fall by 2031 as road transport moves away from fossil fuel, while palm oil imports would plummet, slashed by stricter environment regulation, the European Commission said on Thursday.

In its 2021-2031 Agricultural Outlook, the Commission projected that EU biodiesel use will fall 24% to 14.3 billion litres in 2031 after a peak at 18.9 billion litres in 2023. Bioethanol use would be less affected as it also has non-fuel applications, but it would still shed 10% to 6.4 billion litres in 2031 after rising to 7.1 billion litres in 2023.

The decline in biodiesel would mostly affect palm oil use due to stricter sustainability criteria, while rapeseed oil use is expected to remain stable, representing around half of biodiesel feedstock, it said.

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, a move that raised outcry from the world’s two largest palm oil producers Malaysia and Indonesia.

Palm oil imports in the EU are expected to decline to 4.0 million tonnes by 2031 from 6.5 million tonnes in 2021, with most of the decrease attributed to falling demand for biodiesel, the Commission said.

The EU is expected to remain a net importer of biofuels but biodiesel imports are also likely to be limited by countervailing duties on imports from Argentina and Indonesia.

In ethanol production, the Commission expects maize to remain the principal feedstock, with a share of around 44% while use of wheat is set to fall and other cereals and sugar beet would remain relatively stable.

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Palm Oil Today Indonesia

January - March 2022

MENGAPA PETANI KECIL MERUPAKAN KUNCI DALAM SISTEM PANGAN BERKELANJUTAN?

P

andemi telah membahayakan ketahanan pangan di hampir setiap negara dengan mengurangi pendapatan dan meng ganggu rantai pasokan, dengan konsekuensi yang menghancurkan yang mengakibatkan kelaparan dan kemiskinan. Oleh karena itu, ini merupakan saat yang penting untuk mempertimbangkan bagaimana kita dapat membentuk sistem pangan yang adil, inklusif dan berkelanjutan untuk masa depan.

Sulit untuk membahas sistem pangan global tanpa membahas minyak kelapa sait – minyak nabati yang paling banyak digunakan di dunia. Ia dapat ditemukan dalam bentuk produk kemasan yang dijual di rak supermarket, dari sabun hingga biskuit dan lipstik, serta ia sering digunakan sebagai minyak makan di negara produsennya. Pasar Asia merupakan pelanggan terbesar, dimana Indonesia, India dan Tiongkok mendominasinya.

Petani kecil sangat penting bagi industri minyak kelapa sawit, dengan lebih dari 3 juta petani di seluruh dunia mencari nafkah dari tanaman tersebut. Sementara lahan perkebunan individu kecil dibandingkan perkebunan industrial, namun secara kolektif, mereka mencakup sekitar 40% dari total lahan perkebunan di Malaysia dan Indonesia, dua negara produsen terbesar.

Jika kita mempercepat skala global minyak kelapa sawit berkelanjutan yang bersertifikasii, ada kebutuhan mendesak untuk meningkatkan partisipasi petani kecil dalam skema sertifikasi seperti yang ditawarkan oleh Roundtable on Sustainable Palm Oil (RSPO).

TANTANGAN UNTUK MELIBATKAN PETANI KECIL Ada persepsi bahwa sistem RSPO tidak menyediakan kesempatan yang adil bagi petani kecil, karena standarnya dirancang untuk petani yang berskala besar dan ia tidak mempertimbangkan konteks, kapasitas, ataupun sumber daya petani secara memadai.

Hambatan ini dapat dikategorikan secara luas sebagai organisasi, teknis dan bebasis pengetahuan. Mari kita lihat masing-masing secara bersamaan.

Pertama-pertama, petani kecil tidak dapat disertifikasi secara individu tetapi perlu diorganisir dalam kelompok. Kelompok tersebut harus memiliki manajer kelompok dan sistem kontrol internal, badan yang memastikan kepatuhan semua anggotanya atas Prinsip dan Kriteria RSPO. Di Indonesia, sekitar 45% petani kecil independen merupakan anggota grup produsen tetapi infrastruktur pendukung masih terbatas.

Kedua, Sering kali ada kesenjangan yang signifikan antara praktik petani kecil dan standar RSPO. Untuk mencapai kepatuhan, petani kecil harus merubah operasional mereka secara signifikan. Contohnya, mengenakan alat pelindung ketika menyemprot pupuk, mencatat penggunaan pupuk dan panennya secara akurat, serta belajar untuk menghindari kontaminasi bahan kimia di permukaan air dan air sumur. Agar petani kecil dapat mengimplementasikan praktik agrikultur dan lingkungan yang lebih baik termasuk dengan merekam aktivitas mereka memerlukan perubahan dalam pendekatan dan kebiasaan, yang dapat menjadi lebih rumit di antara petani kecil dengan tingkat literasi yang lebih rendah.

Ketiga, banyak petani kecil secara historis memiliki akses minimal ke proses pengambilan keputusan yang membatasi kesempatan mereka untuk berpartisipasi dalam pelaihtan dan memperoleh pengetahuan. Sering kali ada sedikit kesadaran tentang manfaat sertifikasi bagi petani dan komunitas mereka, dan bagaimana memulai prosesnya.

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Pelatihan untuk petani kecil kelapa sawit Indonesia, dilakukan oleh Badan Keuangan Internasional (International Finance Corporation) pada bulan April 2020 Training for Indonesian oil palm smallholders, carried out by the International Finance Corporation in April 2020 (Gambar/Image: Asosiasi Pekebun Swadaya Kelapa Sawit Labuhanbatu)

MENGATASI HAMBATAN INI MEMBUTUHKAN INVESTASI RSPO telah berupaya untuk mengatasi masalah ini melalui mekanisme yang dibuat khusus dan alat kepatuhan yang “berukuran tepat” untuk petani kecil, serta penyediaan bantuan teknis dan keuangan yang ditargetkan. Standar Petani Kecil Independen RSPO menawarkan pendekatan yang disederhanakan dan menurunkan beban untuk memulai melalui proses bertahap untuk mencapai dan memverifikasi kepatuhan.

Untuk mendukung petani kecil secara finansial dalam perjalanan ini, kami membentuk Dana Dukungan Petani Kecil RSPO. Ini mengalokasikan 10% dari pendapatan yang dihasilkan RSPO dari penjualan minyak kelapa sawit bersertifikasi untuk membantu petani kecil dengan biaya yang terkait dengan audit. Hingga hari ini, ada lebih dari 18.000 petani kecil di seluruh dunia telah menerima bantuan finansial dari skema tersebut. Kami juga membantu mengedukasi komunitas tentang standar dan mekanisme RSPO melalui program penjangkauan masyarakat kami. Ini disampaikan oleh jaringan global mitra di lapangan. Untuk menghubungkan petani kecil ke sumber daya tambahan, kami baru-baru ini meluncurkan Platform Keterlibatan Petani Kecil RSPO. Hal ini memungkinkan mereka yang mencari dukungan finansial atau teknis untuk mengunggah rincian proyek mereka, dan bagi fasilitator ataupun pembeli minyak kelapa sawit berkelanjutan untuk secara langsung terhubung dan membantu mereka.

Terakhir, Akademi Pelatihan Petani Kecil RSPO menyediakan pelatihan berkelanjutan yang skalabel dan dapat direplikasi dalam enam bahasa melalui model “melatih-pelatih”. Dengan demikian, ini memperluas akses ke pelatihan berkualitas tinggi dan meningkatkan kemampuan membangun sumber daya yang tersedia bagi petani kecil di seluruh dunia.

UPAYA INI MEMBUAHKAN HASIL Pada bulan Oktober 2020, sekelompok 30 petani kecil independen di Indonesia menjadi grup pertama di dunia yang tersertifikasi Standar Petani Kecil Independen RSPO di dunia.

Grup tersebut menerima pelatihan oleh organisasi nirlaba dari Belanda, SNV melalui proyek yang didukung oleh Louis Dreyfus Company, yang mengajarkan mereka mengenai praktik budidaya berkelanjutan dan efisiensi produksi, yang memungkinkan mereka untuk menghemat lebih banyak pendapatan mereka.

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COMMENTARY

January - March 2022

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Mereka dengan cepat diikuti oleh Grup Ngoyï Gbaayegie Group di Sierra Leone, yang kini mencakup hampir 5.000 petani kecil independen dengan total luas lahan 8.667 hektar. Keberhasilan mereka dalam mencapat sertifikasi dimungkinkan dengan bantuan dari Goldtree Sierra Leone Ltd, yang bertindak sebagai manajer grup, serta pelatihan dari Akademi Pelatih Petani Kecil dan dukungan finansial dari Dana Dukungan Petani Kecil. Upaya ini telah membantu untuk meningkatkan produksi global miyak kelapa bersertifikasi di bawah Standar Petani Kecil Independen ke lebih dari 1 juta ton pada bulan Agustus 2021 peningkatan 52% dibandingkan tahun lalu, meskipun dalam pandemi.

Sebagai pengakuan atas kesulitan yang dihadapi petani kecil selama 18 bulan terakhir, RSPO telah mengumumkan pengabaian biaya anggota tahunan untuk kelompok petani kecil indipenden dan menyediakan tunjangan sebesar US$ 300.000 melalui Dana Dukungan Petani Kecil. Kemitraan telah berperan penting dalam pencapaian kami selama ini. Kami harus terus secara proaktif melibatkan anggota RSPO dan petani kecil untuk menciptakan lingkungan yang memungkinkan semua petani untuk menemukan pasar yang layak untuk minyak kelapa sawit berkelanjutan yang telah diproduksi.

DI MANA TIONGKOK BERADA Sebagai salah satu pasar konsumen minyak kelapa sawit terbesar, Tiongkok memiliki peran katalistis. Permintaan yang lebih tinggi untuk minyak kelapa sawit berkelanjutan yang tersertifikasi akan menciptakan insentif ekonomi yang kuat di hulu dan mempertahankan momentum menuju sertifikasi.

Perusahaan dapat secara langsung memberi insentif kepada petani kecil dengan membeli Kredit RSPO melalui platform pedagangan daring PalmTrace. Dan konsumen dapat membuat

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Reagents and labware for plant tissue culture

Spectrophotometer, COD Reactor & test kits

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Petani kecil independen yang tergabung dalam koperasi Asosiasi Petani Kelapa Sawit Mandiri di Kalimantan Tengah, Indonesia Independent smallholders who belong to the Asosiasi Petani Kelapa Sawit Mandiri cooperative in Central Kalimantan, Indonesia (Gambar/Image: Asosiasi Petani Kelapa Sawit Mandiri)

perubahan dengan mendukung perusahaan-perusahaan tersebut. Dari bulan Juli 2020 hingga Juni 2021, 47 kelompok petani kecil independen telah mengumpulkan hampir US$ 3 juta melalui Kredit RSPO. Banyak pembeli termasuk perusahaan multinasional besar yang beroperasi di Tiongkok, seperti Unilever, Bayer AG, L’Oréal dan Johnson & Johnson. Dukungan ini tidak hanya untuk membangung rantai nilai dari ujung ke ujung tetapi dapat juga menghasilkan sumber daya yang dapat diinvestasikan dalam bisnis pertanian, yang bermanfaat bagi komunitas secara luas.

Molecular biology reagents for research and development

Merck Solutions for Your Palm Oil Flow Process from research to product quality determination

For more information, please visit our website at SigmaAldrich.com or scan QR Code to download brochure and set your discussion www.indopalmoil.com schedule with our team.

28

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Palm Oil Today Indonesia

January - March 2022

WHY SMALLHOLDERS ARE KEY TO SUSTAINABLE FOOD SYSTEMS?

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he pandemic has jeopardised food security in almost every country by reducing incomes and disrupting supply chains, with devastating consequences for global hunger and poverty.

It is therefore a salient moment to consider how we can shape a just, inclusive and sustainable food system for the future.

It is hard to discuss global food systems without bringing up palm oil the most widely used vegetable oil in the world. It is found in many packaged products sold on supermarket shelves, from soap to biscuits to lipstick, and is often used as cooking oil in countries that produce it. Asian markets are among the biggest consumers, with Indonesia, India and China dominating the charts.

Smallholders are of vital importance to the palm oil industry, with more than 3 million around the world making their living from the crop. While their individual farmlands are small compared to industrial plantations, cumulatively their holdings cover approximately 40% of the total oil palm plantation area in Malaysia and Indonesia, the two main producer countries.

If we are to accelerate the global scale-up of certified sustainable palm oil, there is an urgent need to increase the participation of smallholders in certification schemes, like the one offered by the Roundtable on Sustainable Palm Oil (RSPO).

CHALLENGES TO SMALLHOLDER INCLUSION There is a perception that the RSPO system does not provide equal opportunities for smallholders, that its standard is designed for larger growers and that it does not adequately consider smallholder context, capacity or resources. These barriers can be broadly categorised as organisational, technical and knowledge-based.

Let’s look at each in turn.

First, smallholders cannot be certified individually but need to be organised in a group. The group should have a group manager and an internal control system, a body that ensures compliance of all group members with the RSPO Principles & Criteria. In Indonesia, around 45% of independent smallholders are members of a producer group but support infrastructure is limited.

Second, there is often a significant gap between the practices of smallholders and the RSPO standard. To achieve compliance, smallholders have to change their operations quite considerably.

For example, donning personal protective equipment when spraying fertiliser, keeping accurate records of their use of fertiliser and their yields, and learning to avoid chemical contamination of the surface and groundwater. For smallholders to implement better agricultural and environmental practices – including by recording their activities necessitates a change in approaches and habits, which can be further complicated among smallholders with lower levels of literacy.

Third, many smallholders have historically had minimal access to decision-making processes which has limited their opportunities to participate in training and acquire knowledge. Often there is little awareness of the benefits that certification brings to farmers and their communities, and how to initiate the process.

ADDRESSING THESE BARRIERS REQUIRES INVESTMENT RSPO has sought to address these issues through tailor-made mechanisms and compliance tools that are “right-sized” for smallholders, as well as the provision of targeted technical and financial assistance. The RSPO Independent Smallholder Standard offers a simplified approach to certification and lowers the burden to entry through a phased process for reaching and verifying compliance.

To support smallholders financially on this journey, we set up the RSPO Smallholder Support Fund. This allocates 10% of the income RSPO generates from the sale of certified sustainable palm oil to help smallholders with the costs associated with audits. To date,

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more than 18,000 smallholders globally have received financial support through the scheme. We also help to educate communities on the RSPO standards and mechanisms through our community outreach programmes. These are delivered by a global network of on-the-ground partners. To connect smallholders to additional resources, we recently launched the RSPO Smallholder Engagement Platform. This enables those seeking financial or technical support to upload details of their project, and for facilitators or buyers of sustainable palm oil to directly connect and assist them.

Lastly, the RSPO Smallholder Trainer Academy provides scalable and replicable sustainability training in six languages through a “train-the-trainer” model. In doing so, it expands access to high-quality training and improves the capacity-building resources available to smallholders around the world.

THESE EFFORTS ARE BEARING FRUIT In October 2020, a group of 30 independent smallholders in Indonesia became the first in the world to be certified under the RSPO Independent Smallholder Standard. The group received training by Dutch non-profit development organisation SNV, through a project supported by Louis Dreyfus Company, which taught them about sustainable cultivation practices and production efficiency, allowing them to save more of their income.

They were swiftly followed by the Ngoyï Gbaayegie Group in Sierra Leone, which includes nearly 5,000 independent smallholders who own a total land area of 8,667 hectares. Their success in achieving certification was made possible with the help of Goldtree Sierra Leone Ltd, which acted as the group manager, as well as training by the RSPO Smallholder Trainer Academy and financial support from the Smallholder Support Fund. These efforts have helped to bring the total global production of palm oil certified under the Independent Smallholder Standard to more than 1 million tonnes as of August 2021 a 52% increase compared to last year, despite the pandemic.

In recognition of the difficulties smallholders have faced over these past 18 months, RSPO announced a waiver of its annual memberships fees for independent smallholder groups and is providing a hardship allowance of US$300,000 through the Smallholder Support Fund. Partnerships have been instrumental to our achievements thus far. We must continue to proactively engage RSPO members and smallholders to create an enabling environment that allows growers of all sizes to find a viable market for sustainably produced palm oil.

WHERE CHINA FITS IN As one of the biggest palm oil consumer markets, China has a catalytic role to play. Higher demand for certified sustainable palm oil will create powerful economic incentives upstream and sustain the momentum towards certification.

Corporates can directly incentivise smallholders by purchasing RSPO Credits via the online trading platform PalmTrace. And consumers can make a difference by supporting these companies.

From July 2020 to June 2021, 47 independent smallholder groups raised almost US$3 million through RSPO Credits.

Many of the buyers include large multinationals operating in China, such as Unilever, Bayer AG, L’Oréal and Johnson & Johnson.

This support not only builds an end-to-end value chain but also generates resources that can be invested in farmers’ businesses, benefitting the wider community.

By accelerating the uptake of certified sustainable palm oil, China has an opportunity to transform not only food systems but people’s livelihoods too.

Palm Oil Today Indonesia

January - March 2022

SUSTAINABILITY NEWS

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Petani kecil minyak kelapa sawit Palm Oil Smallholders

PERLUNYA MENDORONG PENELITIAN PENGEMBANGAN MINYAK KELAPA SAWIT BERKELANJUTAN

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akarta – Penelitian harus terus didorong untuk mendorong pengembangan minyak kelapa sawit berkelanjutan nasional, kata Airlangga Hartarto, Menteri Koordinasi Bidang Perekonomian.

“Pelenitian ini harus tetap dilakukan agar produk minyak kelapa sawit dapat (memiliki) nilai tambah, dan hilirnya juga perlu dikembangkan,” katanya secara virtual di Jakarta pada hari Rabu.

Ia menilai peranan litbang serta pemanfaatan teknologi sangat penting dalam memperbaiki status negaranya. Minyak kelapa sawit menyumbang 15,6 persen dari total ekspor non-migas dan berkontribusi sekitar 3,5 persen terhadap PDB (Produk Domestik Bruto), ujarnya.

Oleh karena itu, pengelitian dalam industri minyak kelapa sawit harus fokus pada tiga hal katanya. Area fokus pertama adalah aspek seperti penguatan, pengembangan, dan peningkatan pemberdayaan perkebunan dan industri minyak kelapa sawit yang mengintegrasikan hulu dan hilir, katanya.

Area kedua yang perlu fokus adalah konsolidasi data, produktivitas, peningkatan kapasitas, teknologi di pabrik minyak kelapa sawit, dan pemberdayaan petani minyak kelapa sawit, tambahnya. Area fokus ketiga adalah pengembangan pasar domestik dengan penggunaan bahan bakar hayati dan penelitian pengembangan bahan bakar hayati 100 dan avtur katanya.

“Industri minyak kelapa sawit tidak hanya mendorong kemandirian energi, pengurangan emisi gas, tetapi juga mengurangi impor solar sebesar Rp 38 triliun (hampir US$2,7 miliar) pada tahun 2020. Selain itu, pada tahun 2021, dengan program B30 diperkirakan akan terjadi devisa sebesar Rp 56 triliun (hampir US$ 4 miliar),” kata menteri tersebut.

Minyak kelapa sawit juga memberikan nilai tukar kepada petani dengn harga tandan buah segar (TBS), yang relatif lebih tinggi selama peiode tersebut, berkisar antara Rp 2.800 hingga Ep 3.000 (kurang dari US$1) per tandan.

Menteri tersebut mengatakan bahwa ia mengharapkan perbaikan terus menerus, terutama di hulu, mulai dari perbaikan benih atau keragamannya, pupuk, peralatan mesin, kultur budidaya, teknik panen, hingga ke hilir, dalam bentuk pengembangan produk untuk memenuhi kebutuhan komunitas, ekspansi pasar, dan perhatian terhadap aspek dari keberlanjutan lingkungan.

Ia mencatat bahwa litbang membutuhkan kerjasama antar lembaga, baik pemerintah, industri atau pemangku kepentingan terkait. Acara Pekan Penelitian Kelapa Sawit Indonesia dapat menguntungkan pelaku usaha di industri minyak kelapa sawit jika dilakukan secara rutin sebagai sarana untuk mempersempit jurang pemisah antara komunitas dengan perusahaan perkebunan, katanya.

Ia mengapresiasikan Badan Pengelola Dana Perkebunan Minyak Kelapa Sawit, yang telah bekerja sama dengan pemangku kepentingan, atas upayanya dalam menjaga budaya penelitian yang mendorong pengembangan inovasi teknologi di sektor minyak kelapa sawit.

“Litbang harus terus berlangsung untuk mewujudkan minyak kelapa sawit nasional yang berkelanjutan dan fokus pada isu-isu yang berdampak dan berkelanjutan,” tambahnya.

Program wajib bahan bakar hayati B30 juga bertujuan untuk mendorong stabilitas harga minyak kelapa sawit dan memasukkan minyak kelapa sawit dalam siklus super, dengan harga dipatok pada US$1.283 per ton, katanya.

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SUSTAINABILITY NEWS

Palm Oil Today Indonesia

January - March 2022

NEED TO PUSH RESEARCH ON SUSTAINABLE PALM OIL DEVELOPMENT

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akarta - Research must be continuously encouraged to push the sustainable development of national palm oil, Coordinating Minister for Economic Affairs, Airlangga Hartarto, has said.

The mandatory B30 Biodiesel program is also aimed at stimulating palm oil price stability and including palm oil in the supercycle, with price pegged at US$1,283 per ton, he said.

“This research must continue to be conducted so that palm oil products can (have) added value, and the downstream also needs to be improved,” he said virtually here on Wednesday.

Palm oil also provides an exchange rate to farmers with the price of fresh fruit bunches (FFB), which has been relatively high during this period, ranging from Rp2,800 to Rp3,000 (less than US$1) per bunch.

He deemed the role of research and development as well as the use of technology very important in improving the country’s status. Palm oil accounts for as much as 15.6 percent of the total non-oil and gas exports and contributes about 3.5 percent to the national GDP (gross domestic product), he pointed out.

Thus, research in the palm oil industry must focus on three things, he said. The first area of focus must be aspects such as reinforcement, development, and the improvement of plantations and palm oil industry empowerment, which integrates both upstream and downstream, he said.

The second area that needs focus is data consolidation, productivity, capacity building, technology in palm oil mills, and the empowerment of oil palm farmers, he added. The third area of focus must be the development of the domestic market with the use of biofuels and research in the development of biodiesel 100 and avtur, he stated.

“The palm oil industry not only encouraged energy independence, reduced gas emissions, but also reduced imports of diesel oil by Rp38 trillion (almost US$2.7 billion) in 2020. On the other hand, in 2021, with the B30 program, it is estimated that foreign exchange earnings of Rp56 trillion (almost US$4 billion) will occur,” the minister said.

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The minister said he expected continuous improvement, especially upstream, ranging from improving seeds or varieties, fertilizers, machine tools, cultivation culture, harvesting techniques, to downstream, in the form of product development to meet community needs, market expansion, and attention towards aspects of environmental sustainability.

He noted that research and development require cooperation between institutions, be it the government, industry, or related stakeholders. The Indonesian Palm Research Week event can be beneficial for palm oil industry players should it be regularly conducted as a means to narrow the gap between the community and corporate planters, he said.

He lauded the Palm Oil Plantation Fund Management Agency, which has been working with stakeholders, for its efforts in maintaining a research culture that fosters the development of technological innovations in the palm oil sector.

“Research and development must continue to be done in order to realize sustainable national palm oil and focus on issues that are impactful and sustainable,” he added.

Palm Oil Today Indonesia

January - March 2022

IN THE HOT SEAT

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SOLIDARIDAD: LEADING THE CHARGE TO SUSTAINABILITY AND CLIMATE CHANGE IN INDONESIA Dr Suresh Motwani, General Manager, Edible Oil, Solidaridad

Dr. Suresh is a specialist in sustainable supply chain development across various global agro-commodities and especially edible oils. Currently, he coordinates Solidaridad’s sustainability initiatives in agriculture especially in the edible oil supply chains in Asia.

He has held many positions in international and national organizations, focusing on the area of sustainability, agricultural research, extension, entrepreneurship, and policy advocacy for more than 20 years. He is having vast experience in developing and managing successful public-private partnerships models and innovative digital extension and knowledge transfer models across various countries in Asia.

Dr. Suresh has been instrumental in facilitating the development, ground implementation, market uptake, and strengthening processes of various national and international sustainability frameworks and standards for many agricultural commodities, especially edible oils. For the last decade, he has been key in the development and promotion of sustainability standards and multi-stakeholder platforms for soybean, palm oil, and many other oilseeds crops. He is actively involved in various multi-stakeholder and dialogue platforms for facilitating transformation towards building a more sustainable edible oil industry.

He was one of the key experts in the development of the Indian Palm Oil Sustainability (IPOS) framework, China Sustainable Soy Guidelines, Indian Standards for Sustainable Soy, and many other national and international sustainability standards. He has published many research papers in the journal of national repute and presented a paper in various national and international conferences.

Could you share with us how Solidaridad started in Indonesia’s palm oil industry? What are Solidaridad’s mission and goals in fostering a sustainable supply chain?

Indonesia is the largest producer and exporter of palm oil products in the world. Palm oil is one of Indonesia’s primary export commodities. The palm oil sector provides direct and indirect jobs as well as a livelihood to millions of Indonesians. It is a core source of livelihood and employment for many rural communities, especially for more than 2.3 million smallholders. About 4.7 million hectares of oil palm plantation areas are grown on smallholder land, which accounts for around 41% of total plantation under oil palm in Indonesia.

The palm oil sector in Indonesia has achieved much in the past and can be rightly proud of its achievements. At the same time, some sustainability challenges are to be addressed. These challenges are related to smallholders’ inclusion in the global sustainable palm oil supply chain, lack of knowledge and capacities as well as poor access to improved technologies, and obtaining a fair market price for sustainable palm oil. In addition to this, there are other concerns related to the environmental performance of the sector. Palm oil production is often associated with negative practices. Rather than a ban, we need sustainable palm oil production and consumption. The efforts are needed to reduce the negative impacts of oil palm production and to increase the positive impacts.

Solidaridad in Indonesia started its first project in 2012. In Indonesia, Solidaridad is facilitating interventions around both sustainable production and trade, which is in line with the government of Indonesia’s priorities and commitments towards sustainable palm oil. We are supporting smallholders and preparing them for Indonesian Sustainable Palm Oil (ISPO), with the engagement of the national government Coordinating Ministry for Economic Affairs, The Republic of Indonesia, Indonesian Palm Oil Board (DMSI), and many other stakeholders for facilitating sustainability in the sector. We are implementing many initiatives around smallholders’ support. These initiatives are related to increasing sustainable palm oil supply by supporting Indonesian smallholders.

In the year 2018, a Memorandum of Understanding (MoU) was inked between Solidaridad, the Solvent Extractors Association (SEA) of India, and the Indonesian Palm Oil Board (DMSI). The MoU recognizes the Indonesian Sustainable Palm Oil (ISPO) and the Indian Palm Oil Sustainability (IPOS) Framework as legitimate sustainability frameworks for palm oil production and trade between Indonesia and India. As part of MoU, a high-powered committee “India Indonesia Joint Working Committee for Sustainable Palm Oil” has been formed to discuss the global and regional palm oil challenges and facilitate sustainable palm oil trade between two countries. The committee aims to promote the Indonesian Sustainable Palm Oil and Indian Palm Oil Sustainability Framework in India and other markets besides it aims to create awareness on the health benefits of palm oil and enhance cooperation on trade-related matters.

Meeting of India - Indonesia Joint Working Committee for Sustainable Palm Oil

What are Solidaridad’s mission and goals in fostering a sustainable supply chain?

At Solidaridad, we believe it is possible to transition to a truly sustainable global supply chain. We believe it is possible to meet the growing demand for palm oil by making better use of land already under cultivation. Yields of smallholders can be increased through better access to inputs, technologies, economies of scale, and finance. To achieve this, Solidaridad works with a range of actors to create more sustainable and inclusive supply chains. Our goal is to safeguard biodiversity and improve the livelihoods of smallholders by bringing innovative sustainability solutions to scale. Through better land use planning and support at both a policy and market level, we believe palm oil can play a vital role in providing global food security for millions while protecting local ecosystems.

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IN THE HOT SEAT WE RECLAIM SUSTAINABILITY IN THE PALM OIL SECTOR IN THREE WAYS 1. Prosperous: Under this, we promote increased productivity of existing lands and improved livelihoods, living and working conditions of smallholders and workers through better farm management, access to inputs, and improved and promotion of inclusive business ownership models. A large part of our focus lies in raising the yields of smallholder farmers on existing land through implementing better practices. To bring our interventions to scale, we develop innovative technologies such as digital applications, which allow for rapid and targeted distribution of information to farmers.

2. Balance With Nature: we aim to make healthy eco-systems within the oil palm sector. We address ecological poverty through building resilience against climate change, healthy, regenerative, circular, pollution - and waste-free production.

3. Inclusivity: as part of promoting inclusivity, we address political poverty. We work on creating civic space and voices of youth, indigenous, and minorities as well as gender equity.

NATIONAL PLATFORMS & INITIATIVES We work with major palm oil procuring and consuming countries in Asia to promote sustainable production and trade. We contribute towards the establishment of nationwide initiatives and solutions with the objectives to reach maximum impact. We work with governments to develop policy instruments that support the development of a sustainable palm oil sector. Engaging a range of influential stakeholders, including the government, is key to driving national-level improvements.

Palm Oil Today Indonesia

January - March 2022

national initiatives to develop robust mechanisms to demonstrate their impact. Mutual recognition among national sustainability standards i. e. IPOS- ISPO, and ISPO-MSPO are facilitated to foster cooperation among producing and consuming countries and to promote the production and trade of sustainable palm oil.

Solidaridad has continued to strengthen its initiatives on climate change and came out with three landscape programs focusing on reducing carbon emissions. Could you share with us the new programs that were introduced in Indonesia?

Solidaridad promotes a landscape approach which is around the promotion of national initiatives and sustainability standards which provides a potential opportunity to align with national priorities and commitments. These standards provide the best platform to facilitate national consensus and actions towards addressing ground issues and related sustainability challenges. National standards like ISPO, MSPO, and IPOS; as part of national sustainability initiatives help the local governments and local industry to participate in a sustainability discourse more actively

GPS Training

and as a result, lead to market transformation. At Solidaridad, we call these standards fourth-generation standards as these facilitate inclusive and continuous improvements while enhancing the sustainability performance of the sector and achieving compliance with applicable national and international laws and regulations.

Smallholders Training at Farmers’ Field School

We cooperate with the Indonesian and Malaysian governments through the Indonesian and Malaysian Sustainable Palm Oil Initiatives i.e. ISPO and MSPO, similarly in India together with the Solvent Extractors’ Association of India (SEA) and Solidaridad with the support of the Indian Institute of Oil Palm Research (IIOPR), SOPOPRAD and many industry stakeholders developed India’s standards for sustainable palm oil (IPOS). IPOS is well adapted to the Indian context both in terms of smallholders’ and consumers’ perspectives. In China, we are in process of developing its standard for sustainable palm oil. We support all of these

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Through facilitating multi-stakeholder platforms among the government, private sector, and civil society actors, we enable key landscape stakeholders to set joint agendas around different issues e. g. climate change, reducing carbon emissions, etc. Stakeholders in the landscape are best placed to make their values explicit and prioritize actions.

This process of building partnerships, commitments, and overall coordination of efforts is the core of our landscape approach.

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As part of climate action, Solidaridad is promoting the National Initiatives for Sustainable Climate-Smart Oil Palm Smallholders (NI-SCOPS). The program supports smallholders to implement climate-smart agriculture (CSA).

This is aimed at creating thriving and resilient oil palm landscapes, improving community livelihoods, reducing GHG emissions from deforestation, and making farms, forests, and communities resilient to climate change. The NISCOPS program has been designed as a new mechanism to provide tangible support to enable palm oil-producing countries to measurably contribute to sustainable development goals. The program supports local governments and other stakeholders to improve the productivity and incomes of smallholders and workers, and at the same time protect and restore valuable natural resources in the palm oil-producing landscapes. It also envisions making smallholders led palm oil supply chain more economically robust, socially inclusive, and resilient to climate change.

The NI-SCOPS is being implemented in selected states, provinces, and regions of four countries: Indonesia, Malaysia, Ghana, and Nigeria. The program also contributes towards cooperation with major palm oil-producing countries. The initiatives under NI-SCOPS are public-sector partnership programs, co-owned by national and local government actors. The ‘Key Performance Goals’ for the National Initiatives correspond to the three dimensions of Climate-Smart Agriculture (CSA) as defined by FAO: livelihoods, climate adaptation, and mitigation. Overall, the program contributes towards the global climate and sustainable development goals.

IN THE HOT SEAT

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Smallholders Training on Climate Smart Agricultural Practices

Technology has been influential in the palm oil industry and especially so in recent years. How has Solidaridad been utilizing or harnessing technology to drive its objectives?

Solidaridad has been utilizing technology on smallholders’ profiles and land mapping to support its work in improving the livelihood and sustainability of smallholders.

We use innovative digital solutions these include training app, plantation mapping using GPS devices and drones, etc. To address barriers in this pandemic challenge, we have been applying digital tools for training modules on good agriculture practices. The digital extension tool is being developed to introduce efficient and cost-effective processes, solutions, and systems for preparing smallholders for sustainability certifications. It is an integrated tool for self-assessment to gauge sustainability levels of smallholders, identifying risks, planning, effective implementation of practices, and continual improvement. Furthermore, to support the traceability agenda, we use a traceability mobile tool for efficient data management for smallholders.

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IN THE HOT SEAT

Smallholders Training on Bio-Fertiliser Preparation

Solidaridad has been utilizing technology on smallholders’ profiles and land mapping to support its work in improving the livelihood and sustainability of smallholders.

We use innovative digital solutions these include training app, plantation mapping using GPS devices and drones, etc. To address barriers in this pandemic challenge, we have been applying digital tools for training modules on good agriculture practices. The digital extension tool is being developed to introduce efficient and cost-effective processes, solutions, and systems for preparing smallholders for sustainability certifications. It is an integrated tool for self-assessment to gauge sustainability levels of smallholders, identifying risks, planning, effective implementation of practices, and continual improvement. Furthermore, to support the traceability agenda, we use a traceability mobile tool for efficient data management for smallholders.

The traceability model is being developed with three types of functions: a) Training application b) Self-assurance process c) Traceability from the oil palm producer to the consumer.

The traceability tool facilitates a mechanism to make data work for the oil palm farmer’s improvement, traceability, and fairer returns for the farmers. In other words, it lays down the rules for making data-related practices in the oil palm supply chain. It creates a basis for next-generation “beyond certification” sustainability frameworks, driven by farmers’ self-assessment and continual improvement.

The Indonesian Sustainable Palm Oil (ISPO) is recognized as a legitimate sustainability framework. In your opinion, what other initiatives can help address the challenges in adhering to sustainability practices especially amongst smallholders?

Cost, complicated paper-works, lack of adoption of sustainability practices, and low uptake of sustainable palm oil are among many challenges faced by smallholders to comply with certification. To address those challenges, we have been conducting farmer field schools on good plantation practices and facilitating them to establish smallholder groups/cooperatives to increase the social capital of burden-sharing and peer learning.

We are preparing smallholders for implementation of Indonesian Sustainable Palm Oil (ISPO) and introducing innovative digital tools which help the smallholders to self-assess their performances against sustainability parameters, provides them access to training materials and knowledge. Furthermore, through the technology application, we support them to fulfill the traceability and transparency agenda.

The other recommendations are as follows • Increased market uptake of sustainable palm oil to incentivize the smallholders for the adoption of ISPO • Greater awareness about sustainable palm oil as well as awareness about the goodness of palm oil among consumers need to be created

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Palm Oil Today Indonesia

January - March 2022

What are some of the challenges that Solidaridad has faced during the pandemic? And what do you foresee in 2022 as we slowly emerge from it?

COVID-19 pandemic has disrupted the trade of palm oil.

The demand, export, and imports are dropped and the work at plantations has also been affected due to lockdowns in the producing countries. The extension support to farmers has been affected to some extent however the digital tools promoted by Solidaridad have played a key role in reaching out to farmers during the lockdown period. These tools are found to be very effective in the transfer of knowledge and technologies among farmers.

We expect that with increasing exposure and familiarity with digital technologies, smallholders will be likely to be more capable and efficient in using technology to communicate their sustainability efforts to the world.

Memorandum of Understanding (MoU) inked between Solidaridad, the Solvent Extractors Association (SEA) of India

Solidaridad has vast experience in fighting poverty and advocating sustainable production for the last fifty years.

What are your views now that some people started to realize the importance of sustainability efforts and what is still lacking?

The world still sees ecology and economy agenda are two different opposite directions. Especially in this slowing-down economy due to pandemics, the environmental agenda is pushed to a later priority. However, in addition to this devastating pandemic situation, more and more natural disasters are also happening. For example, in Indonesia, in early 2020, significant floods stroke several areas in Indonesia which people acknowledge due to upstream deforestation in the past and conversion of downstream water catchment areas. As people are ignorant and forgetful easily, this message needs resounding and decision-makers need advocating persistently.

Followings are our views • Lack of awareness among consumers about sustaiability and affects the uptake of sustainable palm oil • The engagement with local laws, national standards, and mandatory schemes would help in embedding sustainability locally • Government intervention from both producing and consuming countries may play a key role in the uptake of Sustainable Palm Oil • Creating shared responsibility between producing and consuming countries because of deforestation, biodiversity loss, and unsustainable practices • Address the issues of duplication due to multiple standards and lower the compliance costs • Traceability in the supply chain has to be improved • Focus on differentiated, sustainable high-value products

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INNOVATIONS AND TECHNOLOGY

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CNH Meningkatkan inovasi digitalnya CNH Boosts its digital innovations

CNH INDUSTRIAL MEMBELI PERUSAHAAN PERANGKAT LUNAK NX9 UNTUK MENINGKATKAN BISNIS PERTANIAN CNH INDUSTRIAL BUYS SOFTWARE HOUSE NX9 TO BOLSTER AGRICULTURE BUSINESS

M

ILAN : Pembuat kendaraan CNH Industrial telah membeli perusahaan perangkat lunak NX9, ia mereka mengatakan pada hari Kamis, sebagai langkah lebih lanjut untuk meningkatkan inovasi digital dalam divisi pertaniannya sementara ia bersiap untuk memisahkan operasional truk, bus dan mesinnya.

Perusahaan berbasis di AS, NX9 merupakan sebuah perusahaan perangkat lunak kecil yang berspesialisasi di teknologi ‘ISOBUS’ untuk peralatan pertanian, protokol komunikasi standar industri yang memungkinkan mesin dan alat untuk berkomunikasi satu sama lain, kata CNH dalam sebuah pernyataan.

Tidak ada rincian finansial yang diungkapkan dari kesepakatan tersebut. Investasi tersebut dibangun di atas upaya strategis perusahaan “untuk lebih efisien berinovasi dan mengembangkan produk di bidang pertanian presisi”, kata CNH Industrial.

Grup Italia-Amerika tersebut, yang dikontrol oleh Exor, perusahaan induk keluarga Agnelli di Italia, akan menyelesaikan rencana untuk memisahkan unit truk dan busnya serta divisi mesin FPT-nya pada 3 Januari, dan mendaftarkan mereka di bawah nama Grup Iveco.

Setelah pemisahan tersebut, CNH – pembuat peralatan pertanian terbesar ke dua di dunia setelah Deere & Co, yang beroperasi di bawah merk New Holland, Case IH dan Steyr akan fokus pada usaha mesin pertanian dan konstruksinya.

Awal tahun ini, grup tersebut mencapai kesepakatan senilai US$2,1 milyar untuk membeli Raven Industries guna meningkatkan operasional pertanian presisi dan otonominya.

M

ILAN : Vehicle maker CNH Industrial has bought software engineering firm NX9, it said on Thursday, in a further step to boost digital innovation in its agricultural division as it prepares to spin off its truck, bus and engine operations.

U.S.-based NX9 is a small software house specializing in socalled ‘ISOBUS’ technology for agricultural equipment, an industry-standard communication protocol which allows machines and implements to talk to each other, CNH said in a statement.

No financial details of the deal were disclosed.

The investment builds upon the company’s strategic effort “to more efficiently innovate and develop products in the precision agriculture space”, CNH Industrial said.

The Italian-American group, which is controlled by Exor, the holding company of Italy’s Agnelli family, will complete on Jan. 3 a plan to spin off its truck and bus units and its FPT engine division and list them under the Iveco Group name.

After the spin-off, CNH - the world’s second largest agricultural equipment maker after Deere & Co, operating under the New Holland, Case IH and Steyr brands will focus on its agriculture machine and construction equipment businesses.

Earlier this year the group struck a US$2.1 billion deal to buy Raven Industries to boost its precision agriculture and autonomy operations.

Last month it entered into a multi-year licensing agreement for electrification technologies with Monarch Tractor, a U.S. company focused on fully electric autonomous tractors.

Pada bulan lalu ia memasuki kesepakatan multi-tahun untuk teknologi elektrifikasi dengan Monarch Tractor, sebuah perusahaan AS yang berfokus pada traktor listrik otonom.

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INNOVATIONS AND TECHNOLOGY

Palm Oil Today Indonesia

January - March 2022

Hans Athaide, Msc(Hons), Professional and Specialty, Solutions ASEAN A 21 year veteran of the industry, Hans has previously held positions in research and development and regulatory affairs prior to assuming a commercial role He is currently the Business Manager of the Professional and Specialty Solutions business in ASEAN, which includes Oil Palm, Forestry, Professional Pest Control, Public Health, Turf and Ornamentals

BASF supports the Roundtable of Sustainable Palm Oil (RSPO) and market transformation towards a certified product. Do share with us BASF’s progress in this aspect.

In 2021, we published our fifth progress report the BASF Palm Progress Report for greater transparency in the value chain. Based on our voluntary commitment to sustainably source palm oil products, we purchased 227,213 metric tons of certified palm kernel oil and palm oil in 2020. This represents 100% of our total volume (completely/100%) as RSPO certified.

BASF also continues to drive forward the RSPO supply chain certification of our sites for cosmetic ingredients.

In 2020, 25 production sites worldwide were RSPO certified. At the same time, we will step up our efforts to improve transparency and traceability in the supply chain.

We can trace almost 95 of our overall oil palm exposure back to the oil mill level in 2020 - totaling 441.107 metric tons.

On top of these achievements, BASF published and enhanced Palm Sourcing Policy as well as our Forest Positioning. In 2020, BASF also participated for the first time in CDP Forest, which resulted in A-.

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Selontra contains cholecalciferol in a highly palatable bait matrix that can control rats and mice. What was the main driving force behind this innovation? And how long did BASF take to come out with such a formulation?

Selontra is a result of more than a decade of research and development. Our driving force was a clear market need for an innovative, palatable and effective bait that did not rely on anticoagulants given their many disadvantages. After screening and testing over 1,200 different possible candidates over 10 years, cholecalciferol was identified as the best candidate for a new rodenticide active ingredient as it offered a unique mode of action (hypercalcemia), short time to death, and reduced environmental impact. However, a highly palatable bait matrix was required to transform cholecalciferol into an effective rodenticide bait. It took a team of biologists and formulation chemists three years to develop the right formulation for Selontra. But the result speaks for itself.

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Could you share with us some of the users of Selontra in this region for the palm oil industry?

While we can’t share any names due to customer privacy, several large plantation operators have successfully integrated Selontra into their rodent management program with excellent results.

Describe ‘Speed Baiting’, which is one of the unique features of Selontra. How does it differ from other products of rodenticides?

Selontra’s extremely high palatability and fast stop-feeding effect mean that plantation mangers can control even large rodent populations within 7 days with just a single application of 1 bait block per tree (though in cases of very high infestations, an additional application may be needed). This means that Selontra can control infestations in as little as 1 - 2 applications. In comparison, other rodenticides often require 4-8 applications to get effective control resulting in a need for additional bait and labor, and more damage of oil palm fruit due to slower control of the infestation.

With the unique chemistry and palatability of Selontra, plantations can reduce the amount of bait and the number of applications needed to control rodent infestations, which saves valuable time and money and reduces yield loss.

Selontra has minimal impact on non-targets, especially barn owls that are natural predators of rodents.

This makes it aligned with the RSPO principles of Integrated Rodent Pest Management using natural predators of rodents.

Please share with us how BASF caters their products to a different group of clients, especially smallholders. Would they be able to benefit from this and its affordability?

Selontra is available to farmers both large and small.

All producers value protecting their yield from rodent damage. In addition, when you factor in labor costs/time savings and increased yield, Selontra is more cost-effective than the current anticoagulant baits used by smallholders. We’re working to help educate the market – including smallholders on how to use Selontra effectively so that they can increase their yields, reduce costs, and ultimately boost their income.

It’s not often that we see BASF involved in the palm oil industry, are there other new products lined up with regards to pest management besides Selontra as BASF makes its foray into the industry?

BASF has a wide portfolio of products for the oil palm market which includes herbicides and insecticides, in addition to rodenticides like Selontra . Our main objective is to help oil palm planters produce more from their existing plantations. Our products help farmers in reducing the number of agrochemicals being applied in the environment, reduce labor costs, and protect their yield.

For the future, we have a pipeline of long-lasting herbicides which have the potential to improve labor productivity and reduce applications that are planned for launch in Indonesia in the coming years.

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