Palm Plantation Tribune Vol 5 No 5 by mapsglobe

The State Of Oil Palm Mechanisation

Ganoderma: A Silent Threat to Indonesia’s Palm Oil Industry Technology

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Floods Slash Malaysia’s Palm Oil

Output

(11 February 2025)

“ e data is highly supportive for prices, reinforcing concerns about tight supplies in Q1,” said Sathia Varqa, an analyst at Fastmarkets Palm Oil Analytics. With palm oil’s year-round production and lower land requirements compared to oilseeds, any prolonged supply disruption could further strengthen prices.

Malaysia to Ensure Su cient Workforce

(4 February 2025)

e Plantation and Commodities Ministry is committed to ensuring su cient manpower for Malaysia's palm oil plantations, says Minister Datuk Seri Johari Abdul Ghani. As the world’s second-largest producer, Malaysia aims to maintain stable production. Johari highlighted that commodity prices depend on supply and demand, with prices rising when demand is high and production is low, and falling when production exceeds demand.

A key factor in maintaining output is having an adequate workforce to prevent unharvested ripe fruits. Johari responded to a question in Dewan Rakyat about measures to address declining palm oil prices, emphasising that both large plantations and smallholders use high-quality materials and adopt good practices to boost yields.

Regarding foreign workers, Johari assured that the ministry works with the Home Ministry and Labour Department to ensure compliance with International Labour Organisation (ILO) standards. Malaysia rati ed the ILO’s Forced Labour Convention in March 2022, aiming to combat forced labor. e government remains committed to worker welfare, and plantation companies must now obtain Malaysian Sustainable Palm Oil certi cation to ensure compliance with labor standards. Mechanisms for workers to report violations of rights, including forced labor, have also been established.

Columnist Joseph Tek re ects on the late Tun Lim Keng Yaik, a towering gure in Malaysian politics and the palm oil industry. As Malaysia’s Minister for Primary Industries from 1986 to 2004, Tun Lim transformed the palm oil sector, leading it from obscurity to global prominence. He took on the powerful American Soybean Association in the “War of Oils,” countering misinformation with his "hydrogen bomb" of scienti c facts that reshaped the conversation around palm oil.

Inspired by a Tun LKY and His ‘Hydrogen Bomb’

(18 January 2025)

Tun Lim’s famous threat to expose the dangers of hydrogenated oils (trans fats) played a key role in securing a major victory for Malaysia’s palm oil industry. Known for blending diplomacy with humour, he o en joked about his "hydrogen bomb" and medical quali cations while advocating for the sector’s growth. He also championed bold goals like Vision 25:35, pushing the industry to aim higher with a mix of humor and ambition. Behind every campaign was his deep passion for his country, its people, and palm oil. Tun Lim’s legacy reminds us that the ght for palm oil was about more than economics; it was about vision, courage, and a bit of humor. His determination and advocacy continue to inspire today. Rest in peace, Tun Lim Keng Yaik - you are deeply missed, but your impact remains. e LinkedIn on this article garnered over 70,000 hits!

Palm Oil Industry Urges Govt to Reconsider EPF Mandate for Foreign Workers

(5 February 2025)

e Malaysian palm oil industry is urging the government to reconsider the mandate requiring foreign workers to contribute 2% to the Employees Provident Fund (EPF), citing potential costs of RM274 million annually. is mandate would see foreign workers contributing 2%, matched by employers. With around 336,500 foreign workers in the sector, this policy could burden both employers and workers, especially given the nancial pressures already faced by the industry.

e palm oil sector heavily relies on foreign workers, primarily from Indonesia, India, Nepal, and Bangladesh, for jobs locals avoid. e proposed EPF contribution may con ict with the short-term nature of foreign workers’ employment, as many prioritise sending money home over saving for retirement. e industry also raises concerns over a lack of a clear withdrawal mechanism for workers returning home, potentially causing dissatisfaction and complicating employer compliance.

e policy could particularly impact small and medium-sized plantation companies, reducing pro tability and hindering their competitiveness in the global market. While the industry supports improving worker welfare, it calls for policies that are fair, practical, and mindful of the sector's challenges.

A new report by Human Rights Watch and Sarawak-based NGOs urges the EU to classify Sarawak’s timber and palm oil as “high risk” under the EU Deforestation-Free Product Regulations (EUDR), subjecting exports to stricter scrutiny.

e report cites deforestation and alleged human rights violations, including the failure to obtain free, prior, and informed consent from Indigenous communities.

Sarawak lost an estimated 85,100 hectares of forest in 2023 alone, with 423,500 hectares cleared between 2019 and 2023, according to Global Forest Watch. ough deforestation rates have slowed since the 2010s, rights groups argue that timber and palm oil industries threaten large areas of regenerating forests.

e EUDR, replacing previous EU Timber Regulations, categorises countries and regions as “low,” “standard,” or “high” risk based on deforestation rates. If designated “high risk,” Sarawak’s exports to the EU will face higher inspections.

NGOs Push EU to Label Sarawak as ‘High Risk’ for Timber, Palm Oil

(9 October 2024)

e EU, a key market for Malaysian timber and palm oil, imported 1.07 million metric tons of palm oil last year.

SAVE Rivers and its partners have raised concerns about Sarawak’s land laws, which require Indigenous communities to prove continuous occupation since 1958 to claim ancestral land. ey argue the EUDR must uphold Indigenous rights to remain credible. Despite resistance from Sarawak’s industry, NGOs note an increasing urgency to comply with EUDR requirements to maintain EU market access. e EU has responded with stakeholder meetings and fact- nding missions, signaling potential policy adjustments before full enforcement by late 2025.

ICOPE 2025: Indonesia Calls for Sustainable Palm Oil to Curb

Deforestation

(13 February 2025)

Indonesia, the world’s top palm oil producer, is seeking to balance economic growth with environmental sustainability as deforestation concerns persist. Speaking at the International Conference on Oil Palm and Environment (ICOPE 2025) in Bali, a senior Forestry Ministry o cial urged the integration of palm oil cultivation with forest conservation.

“Oil palm cultivation must adopt a holistic approach that aligns with natural ecosystems,” said M. Saparis Soedarjanto, Secretary of the Directorate General of Sustainable Forest Management. He emphasised strategies such as agroforestry systems, wildlife corridors, and sustainable land-use planning to mitigate deforestation and biodiversity loss.

Indonesia has one of the world's largest forest ecosystems, ranking third globally in rainforest extent and second in biodiversity. Over 125 million hectares, or 65% of the country’s landmass, are designated as National Forest Areas, comprising production, protection, and conservation forests under the Forestry Ministry’s jurisdiction. While Indonesia’s deforestation rate has declined, forest loss remains a concern. In 2023, 30,000 hectares of rainforest were cleared for oil palm plantations, up from 22,000 hectares in 2022. However, the country’s net deforestation rate fell to 104,000 hectares (2021-2022), down from 113,500 hectares (2020-2021), indicating progress in conservation e orts.

e Chief Research & Development O cer at SD Guthrie Berhad argues that palm oil is an essential crop due to its high yield per hectare compared to alternatives like soybean or sun ower, making it crucial for feeding the growing global population, expected to reach 9.7 billion by 2050. However, this growth presents the challenge of increasing agricultural productivity on limited land while protecting the environment. Historically, palm oil expansion has impacted biodiversity-rich regions, but the industry has adapted over the past decade, implementing sustainable practices. Advancements in genomics have enabled the breeding of higher-yielding oil palms, and technological innovations, such as drones and precision agriculture, have increased e ciency and minimised environmental impacts. e industry is also committed to climate action, with investments in reducing carbon emissions and creating bioenergy from palm oil biomass.

Palm oil is an essential crop due to its high yield per hectare

(15 January 2025)

Palm oil supports millions of livelihoods, especially in rural communities, and smallholders, who contribute signi cantly to production, must be empowered with a ordable technologies and training for sustainable development. Public perception remains a challenge, as palm oil is o en demonised, but transparency, traceability, and sustainability certi cations can help shi this narrative. e industry has made signi cant strides, and with a focus on sustainability, it is poised to remain a vital crop in the future. Sustainable evolution, rather than mere compliance, is key to the industry’s continued success.

Replanting at Risk: Prioritising Quality

Seeds

(25 Feb 2025)

Malaysia’s palm oil industry faces a long-term threat due to slow replanting e orts, warns Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani. Speaking at the Palm and Lauric Oils Price Outlook Conference, he stressed the urgency of replanting to maintain productivity without expanding land use.

In 2024, only 114,000 hectares (2% of total plantations) were replanted, far below the recommended 4%-5% annual rate.

e Minister urged the industry to prioritise replanting with high-quality planting materials, cautioning that smallholders o en receive substandard seedlings from unscrupulous nurseries.

To address this, MPOB will conduct random inspections to ensure nurseries supply genuine high-yielding Dura and Pisifera hybrid seeds. With Malaysia’s commitment to halting deforestation, sustainable replanting is crucial to the sector’s resilience and growth. e government remains focused on protecting the industry and the livelihoods of 450,000 smallholders.

e State Of Oil Palm Mechanisation

By Joseph Tek Choon Yee

Sarawak Plantation Berhad has developed a mechanised oil palm harvester called the “Lipan” that is set to revolutionise the oil palm industry in Sarawak.

Source: e Borneo Post (2024/10/09) Sarawak unveils mechanised oil palm harvester lipan addresses labour shortage e ciency.

Mechanisation is o en touted as the solutions when plantations are perceived as outdated or unwilling to invest. However, it is important to critically assess whether we are truly witnessing viable solutions, or merely promoting the latest technological innovations that sound appealing in theory but may lack practical application.

Policymakers and technology advocates, many of whom have never experienced the daily challenges rsthand, o en invoke terms like IR 4.0 or 5.0, AI, robotics, lasers, and drones as though they represent the ultimate Holy Grail we’ve all been waiting for. Inevitably, someone will draw a comparison to the evolution of mobile phones, o en citing the rise of the iPhone as an example. However, it is crucial to recognise that oil palms are not pocket-sized devices, and the complexities of the industry demand more than simplistic analogies.

Mechanisation in the Malaysian oil palm sector has been pursued since the 1980s, covering operations such as land preparation, transplanting, manuring, waste disposal and other aspects of upstream operations. Despite these long-standing e orts, the industry still faces signi cant challenges in achieving widespread mechanisation. Mechanising oil palm plantations is crucial for sustaining the industry amid rising operational costs, labour shortages and the urgent need to boost productivity. e lack of e ective mechanisation solutions capable of reducing workforce numbers remains a critical issue.

Various strides have been made in mechanising non-harvesting operations, such as in- eld crop evacuation, manuring and weeding. Technologies like drones and digital solutions can further improved operational e ciency. However, these advancements will not substantially reduce the need for workers, as non-harvesting tasks generally require fewer workers compared to harvesting operations. Currently, harvesters account for approximately 50% of the workforce in non-mechanised oil palm operations. Developing e ective mechanisation solutions for harvesting, especially for tall oil palm trees is the industry's most pressing challenge. is includes related tasks such as cutting bunches, pruning fronds, stacking of fronds and collecting loose fruit.

A key aspect to understand in the oil palm sector is that nancial returns are only realised when the crop is weighed at the mills. E ective management throughout cultivation and harvesting is necessary to reduce crop losses, which can be signi cant due to prolonged harvesting intervals. In addition, with over 1.5 million hectares of oil palm trees aged 20 years or older (27% of Malaysia’s total planted area), urgent action is required to address the declining productivity of these older trees due to their heights.

Labour comparative studies show that the oil palm sector requires less labour per hectare than other tropical crops like rubber, cocoa, co ee and sugar cane. However, Malaysia’s oil palm industry continues to face labour shortages. erefore, oil palm is a vital part of the country’s agricultural economy - and cannot be replaced by other perennial crops, which generally require a larger workforce. It is also important to recognise that locals tend to avoid working in the 3D ie. Dirty, Dangerous, Di cult sector, worsening labour shortages. e ship has sailed long time ago. e future of Malaysia's agricultural landscape depends on addressing the labour shortages in the oil palm sector, as no alternative crop o ers the same level of productivity and economic contribution. Malaysia shall sink or swim with oil palm as the tropical plantation crop.

As the industry strives for higher yields through better planting materials, e ective manuring, and favourable weather, the demand for labour will increase further. Greater productivity leads to more crops, which in turn require more harvesters. is adds to the challenges in an environment where mechanisation solutions are still inadequate, especially during peak seasons and adverse weather conditions. Until breakthroughs are made in addressing critical harvesting tasks, the need for harvesters will remain high. e reality is clear: the oil palm industry must embrace mechanisation to stay competitive, or it risks falling behind - it is to mechanise or perish. But the real question remains: Do we currently have mechanisation solutions that are both cost-e ective and scalable?

Unique Challenges in Oil Palm Mchanisation

Mechanisation in the oil palm sector faces several unique challenges related to the biology characteristics of oil palm trees, eld operations and the plantation environment. Advancing mechanisation in this sector requires an appreciation and understanding of plantation operations, which vary with cropping patterns and weather conditions throughout the year. Unlike controlled environments such as greenhouses, oil palm plantations are in uenced by complex factors that make mechanisation di cult.

While mechanising fruit harvesting in controlled environments like greenhouses is feasible, such methods are not directly applicable to oil palm plantations. e fundamental di erences between annual and perennial crops must be acknowledged. Oil palm trees follow a biological sigmoid growth curve for crop production. Any mechanisation strategy must also account for the trees’ height increments. Oil palms grow about 60 cm per year for the widely planted DxP of Deli and AVROS origins, reaching around 13.7 m (45 feet) by the age of 25. Mechanised harvesting solutions must accommodate these periodic increasing heights. Trees taller than 12 m become di cult to harvest, which is why oil palms must be replanted once they exceed this height.

Currently, only about 17% of Malaysia's oil palm plantations - 960,000 hectares - comprise trees aged 4 to 8 years, which can be accessed by motorised cutters. However, the e ectiveness of these motorised cutters in real-world conditions is still under evaluation with inherent issues. e delays in addressing aging oil palm trees further complicate e orts to implement mechanisation. Projections suggest that by 2027, around 2 million hectares - 35% of Malaysia's oil palm area - will consist of old mature tall trees. ese aging trees not only reduce productivity but also make harvesting more arduous.

It must also be recognised that 55% of Malaysia's oil palm plantations are in Sabah and Sarawak, with Sabah featuring hilly terrains and Sarawak dominated by peatland areas. ese diverse soil types and topographical challenges must be carefully considered when developing mechanisation strategies. While a one-size- ts-all solution may not be feasible given the diversity of soils and terrains, the quest must continue to develop solutions that can cover as large a percentage of planted areas as possible.

Innovative ideas, such as developing climbing robots for oil palm harvesting, have been proposed, drawing inspiration from similar technologies used for coconuts. e signi cant di erences between the two species must be considered, including canopy coverage, frond butts, and the presence of thorns on fronds and bunches, which make developing such climbing mechanisation solutions challenging, but we must embrace these challenges to nd the solutions.

ere are perhaps still opportunities to enhance conventional harvesting tools like chisels, sickles, poles and sharpening stones. We must take note that the oil palms contain high levels of silica (SiO2) and lignocellulose, which can quickly blunt tools. A single oil palm tree can store 4–5 kg of silica in its biomass, and pruned fronds can return 110–131 kg of silica per hectare to the soil each year, a ecting the durability of tools used for harvesting. Finding more durable and long-lasting metal materials for the tools is crucial.

Oil Palm Harvesting Technologies

Harvesting is one of the most physically demanding tasks in oil palm operations. As trees grow taller - especially those exceeding 12 meters - harvesting becomes increasingly challenging. is task requires skilled workers, but the number of skilled harvesters is dwindling, especially as the workforce ages. Furthermore, the physical limitations of human workers must be acknowledged. Manual harvesting is exhausting, and workers can only perform for so long before fatigue sets in. As productivity demands increase, the physical limits of harvesters become a signi cant constraint.

Mechanised harvesting solutions must address the challenge of harvesting taller trees while improving cutting e ciency and maintaining productivity. Another critical aspect is the labour-intensive task of loose fruit collection. Loose fruit, which ripens and falls naturally, is vital to overall yield and oil quality. Mechanising loose fruit collection would save time and e ort while ensuring that fruit is gathered promptly, preserving its extractions and quality.

Despite e orts, many mechanisation prototypes have yet to meet the practical demands of plantation work. Tools that hinder harvester mobility or lack durability for eld conditions are o en rejected. Additionally, many prototypes are too expensive for large-scale implementation, deterring investment in innovative technologies. Machines used in plantations operate daily, yet their durability was not originally designed to withstand such frequent use. Additionally, there are signi cant gaps in a er-sales service, as well as challenges in sourcing parts and handling repairs. E ective mechanisation requires integrated systems where machines work cohesively across the operations. ese machines must be adaptable to di erent conditions and robust enough for tropical environments with vagaries of weather

Some mechanisation solutions under development face the following challenges:

Motorised Cutters: While these tools show promise in enhancing e ciency, they cause issues such as high vibration and mobility, which poses safety and long-term health risks for workers. While o en used for pruning, they are not yet fully reliable for harvesting due to concerns over battery life, worker mobility, maintenance and a er sale service.

Drone Technology: Drones have been e ective in mapping, precision pest control and fertilisation, but their use in harvesting can be limited. Issues like battery life and productivity persist, and obtaining regulatory approval for drones can be di cult, more so if lasers are being considered for incorporation to help in harvesting. E orts are underway to integrate drones with motorised cutters to enhance functionality. ese systems will be rigorously tested for productivity and all-weather performance.

Exoskeleton-Assisted Harvesting: Exoskeletons aim to reduce the physical strain of repetitive tasks in humans. ese technologies are still in early development and face challenges related to mobility, very high entry cost and practical eld use.

Autonomous Robots: Robots designed for harvesting and crop evacuation hold long-term potential. Its multi-disciplinary integration will take time. e complex structure of oil palm trees, especially the canopy where the bunches are located and its varying heights presents substantial challenges. Developing autonomous systems that can navigate plantations and harvest fruit e ciently remains a long-term endeavour.

Embracing New Technologies

e oil palm sector is exploring a variety of new technologies that promise to enhance productivity and e ciency. However, the key challenge lies in integrating these technologies to address speci c mechanisation issues e ectively. Several fast-emerging technologies

Digitalisation with GPS/GIS Technology: Essential for mapping plantations and planning e cient harvesting routes. Proper training and understanding of these tools are crucial for boosting productivity.

Arti cial Intelligence (AI): AI can optimise decision-making and predictive maintenance. Successful integration requires careful planning to ensure AI systems align with existing processes and machinery.

Blockchain Technology: Enhances traceability and transparency in the supply chain. Integrating blockchain necessitates strategic data management and security measures.

Internet of ings (IoT): IoT devices allow real-time monitoring of equipment and eld conditions, enabling responsive management. e challenge lies in ensuring seamless communication between devices and supporting systems.

Cloud Computing: Enhances data storage and accessibility for better analysis. Its cost-e ectiveness must be weighed against its potential bene ts.

Big Data Analytics: Can facilitate in best practices and optimise planting and harvesting schedules. Integrating data analytics into operations is essential for translating insights into actionable strategies.

While these technologies o er substantial promise, cost-e ectiveness and connectivity remain for now the critical factors, especially set against a commodity-driven industry where returns on investment are closely scrutinised. For mechanisation to be e ective, it must improve productivity across all stages of the supply chain. is requires the integration of various machines and processes to work together seamlessly. Success will depend on multidisciplinary collaboration across including engineering, agronomy, data analytics and logistics, to create a comprehensive and optimised system, and managing resistance to change.

Stakeholders in Oil Palm Mechanisation

Oil palm mechanisation involves a variety of stakeholders, each with distinct priorities, making collaboration crucial for progress. However, true advancement requires these stakeholders to align their e orts, collaborate e ectively, and gain a deeper understanding of the industry's complexities. Di ering priorities and issues surrounding intellectual property (IP) o en create challenges among innovators.

Technology marketers o en highlight their innovations as solutions to industry challenges, attributing slow adoption to planters' reluctance or lack of incentives. Fostering open dialogue is vital to address the real-world di culties faced by planters, who may nd mechanisation tools impractical or costly. Challenges such as harvesting tall trees and navigating di cult terrains complicate adoption, and when technologies fail during critical periods, planters su er nancially. Many are keen for long-term solutions, but yet remain entrenched in traditional practices hindering mindset shi s. ere are already "low-hanging fruits" in mechanisation for in- eld crop evacuation and other estate operations, which should be promoted and implemented more widely. ese accessible solutions represent strong investment opportunities.

Authorities o en communicate progress in mechanisation optimistically, showcasing achievements and potential. However, it's crucial to acknowledge the bureaucratic complexities and regulatory hurdles that can slow down innovation despite good intentions. Leaders in plantation companies emphasise R&D investments and performance metrics, yet many recognise that e cient harvesting remains a signi cant challenge. Addressing these complexities requires honest discussions beyond political and corporate narratives, focusing on sustainable, long-term solutions.

Newcomers or those less familiar with the industry may view proposed solutions like AI and automation as straightforward xes. However, they o en overlook the unique challenges posed by the biological and perennial nature of oil palm. ere is no one-size- ts-all solution; mechanisation must account for variations in terrain, soil, and tree characteristics. Unlike annual crops grown in controlled environments, oil palm faces a completely di erent set of challenges. It would be ideal if insights from these other crops could be adapted

In the evolving landscape of oil palm mechanisation, stakeholders hold diverse views. While optimists foresee a bright future, others highlight signi cant obstacles. Pragmatists advocate for realistic strategies, while opportunists may prioritise personal gains over

Despite the challenges, this diversity can be galvanised and leveraged if relevant stakeholders engage in constructive dialogue and collaboration. Acknowledging these challenges creates a sense of urgency for adopting e ective mechanisation solutions. To advance oil palm mechanisation, stakeholders must commit to resources and engage the right people with a long-term leadership that transcends short-term interests. e journey ahead demands sustained e ort, multidisciplinary teams, and a collective determination to overcome obstacles. Only through this uni ed approach can we break free from stagnation and unlock the industry's full potential.

Way Forward

It is time to distinguish between hype and reality at this juncture. Mechanisation has made strides in certain areas, such as crop evacuation and eld maintenance. However, we are still far from addressing the most signi cant challenge: harvesting tall trees. In fact, many so-called “success stories” have yet to tackle this fundamental issue.

While some technological advancements can improve e ciency in speci c areas, mechanisation is not a one-size- ts-all solution. We are still a long way from achieving the necessary scalability and cost-e ectiveness required for widespread implementation. Without meaningful, practical breakthroughs, progress remains limited. e stakes are higher than ever. Should anyone successfully develop a cost-e ective method for harvesting tall oil palm trees, it would be a groundbreaking achievement, deserving of the highest recognition, as it would represent the Holy Grail of mechanisation.

e future of Malaysia’s oil palm mechanisation hinges on collaboration and an unwavering commitment to solutions that serve the greater good, putting the national interest above individual gain. By fostering a culture of honesty, transparency and cooperation, we can navigate the complexities of mechanisation and pave a bold path forward.

e oil palm industry must embrace mechanisation to stay competitive in the face of global challenges and labour shortages. While the road ahead may be fraught with challenges and signi cant costs, the long-term rewards - boosted productivity, sustainability, and reduced reliance on manual labor - make it not just important, but essential. As we move forward, let’s tackle the immediate challenges head-on, seize the opportunities mechanisation o ers and build collaborations that extend beyond our borders.

5th International Oil Palm Biomass Conference 2025 MATRADE Exhibition, Kuala Lumpur, Malaysia

2025 EVENTS

Asia Palm Oil Thailand 2024 CO-OP Exhibition Centre, SuratthanI, Thailand

15th PALMEX Indonesia 2025 (PALMEX Jakarta)

MPOA Annual Dinner

Jakarta International Expo (JIEXPO), Kemayoran, Jakarta, Indonesia 17 May

AgTech International Expo

Setia City Convention Centre, Shah Alam

One World Hotel, Petaling Jaya, Malaysia 21 -23 May

Andalas Forum VI 2025

-23 May

Malaysia Palm Oil Expo (MAPEX) 2025

Dewan Hakka Sandakan, Sabah, Malaysia

Palm Oil TechConnect: Advancing Global Mechanization and Automation Miri, Sarawak, Malaysia 14 - 15 May

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SKA Convention Exhibition, Pekanbaru, Riau, Indonesia 11 - 12 June

3rd T-POMI Technology & Talent Palm Oil Mill Indonesia 2025

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8 - 10 July

17th National Seminar (NATSEM) 2025

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14 - 16 July

11th Indonesia International Palm Oil Machinery & Processing Technology Exhibition 2025 (INAPALM ASIA 2025)

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29 - 31 July

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3rd Sawit Indonesia Expo (SIEXPO) 2025 Pekanbaru Convention & Exhibition Riau, Indonesia

7 - 9 August

Palm Oil TechConnect: Advancing Global Mechanization and Automation

Sandakan, Sabah, Malaysia

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11 - 13 September

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Santika Premiere Dyandra Hotel & Convention, Medan, Indonesia

7 - 9 October

Palm Oil TechConnect: Advancing Global Mechanization and Automation

TBC, Kuala Lumpur, Malaysia

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October

21st Indonesian Palm Oil Conference (IPOC) and 2026 Price Outlook

Bali International Convention Centre (BICC), Bali, Nusa Dua, Indonesia

Early November

MPOB International Palm Oil Congress and Exhibition (PIPOC) 2025

Kuala Lumpur Convention Centre, Kuala Lumpur, Malaysia

18 - 20 November

2nd Unlocking Revenue and Sustainability: Exploring Carbon Credit Opportunities in the Palm Oil Industry 2025 (Biomass Edition)Kuala Resorts World Awana, Genting Highlands, Malaysiai

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Teknologi Bandung

Ganoderma: A Silent reat to Indonesia’s Palm Oil Industry

Amal Ihsan Hadian, Chief Editor/Head of Research, IndoScope

Indonesia’s failure to systematically track Ganoderma infections has le plantations vulnerable to mounting losses. is brief explores the scale of the threat, the urgent actions required to safeguard the sector’s future, and why the private sector must take the lead in mitigating the crisis.

e Issue:

e Indonesian Palm Oil Association (GAPKI) is calling on plantation companies to be more transparent in reporting cases of Ganoderma, a deadly disease threatening palm oil productivity. Despite its signi cant impact, Indonesia lacks accurate data on the extent of the infection, in contrast to Malaysia, which records around 14% or 400,000 hectares of infected plantations through an annual survey by the Malaysian Palm Oil Board (MPOB).

As a concrete measure to address Ganoderma, GAPKI has established the Indonesian Ganoderma Consortium in collaboration with the Indonesian Phytopathology Society (PFI) and the Indonesian Association for Oil Palm Breeding and Seed Science (PIPPSI). One of the consortium’s key initiatives is developing a Ganoderma database to systematically collect data on the disease’s spread and severity.

Speaking at the 2nd ISGANO conference in Bandung, Indra Syahputra, Chairman of the Ganoderma Consortium and Director of Seed Production and Laboratories at PT Soc ndo, urged plantation companies to report infection cases through the “Si Gano” application. “If all companies report Ganoderma attacks, we will have a clearer disease distribution map, allowing research e orts to be more focused on controlling and mitigating its impact,” Indra stated on Monday (Feb 10, 2025).

e consortium is also focusing on raising awareness among smallholder farmers, as limited understanding of basal stem rot (BSR) has made the disease harder to control. e program targets farmers, plant pest observers (POPT), agricultural extension workers (PPL), and seed breeders to enhance early detection and disease management.

Another key initiative is the development of Ganoderma-resistant planting materials, as such seedlings remain scarce and expensive. e consortium aims to accelerate seed selection methods to boost the production of more resistant palm oil seedlings. With these collaborative e orts, the national palm oil industry is expected to be better prepared to tackle the Ganoderma threat and improve overall plantation productivity.

Our View:

Ganoderma is a pathogenic fungus that has emerged as a major threat to Indonesia’s palm oil industry. is disease, speci cally caused by Ganoderma boninense, leads to basal stem rot (BSR) in oil palm trees, signi cantly reducing productivity and, in severe cases, causing plant death.

e economic and environmental repercussions of Ganoderma infestation have raised concerns among industry stakeholders, yet Indonesia still lacks comprehensive data on its spread and impact. is paper explores the nature of Ganoderma, its implications for the palm oil supply chain, and the challenges in controlling its spread.

One of the primary challenges in combating Ganoderma is the absence of precise data on infection rates and a ected plantation areas. Unlike Malaysia, which systematically tracks Ganoderma spread through the Malaysian Palm Oil Board (MPOB), Indonesia relies on estimations and anecdotal evidence.

is data gap hampers e ective policy formulation and strategic mitigation measures. Over the past ve years, global palm oil supply has stagnated, with experts like omas Milke attributing part of the decline to Ganoderma-related losses. Without accurate gures, it is di cult to assess the real extent of the disease’s impact and devise targeted solutions.

Historically, Ganoderma was believed to primarily a ect replanted oil palm generations (second, third, and beyond). However, recent ndings indicate that even rst-generation trees, which have never undergone replanting, are susceptible to infection. is discovery contradicts long-held assumptions and suggests that the pathogen may have broader environmental triggers.

e increasing prevalence of monoculture practices in Indonesia’s palm oil plantations has exacerbated the problem, leading to an annual infection rate rise from 3.7% to 42.2% over eight years. Such rapid progression demands a reassessment of current mitigation strategies.

Ganoderma’s impact extends beyond individual plantations to the broader palm oil supply chain. Indonesia and Malaysia together account for 85% of global palm oil production. A decline in Indonesia’s output due to Ganoderma infestations a ects global supply, in uencing commodity prices.

As productivity declines, Indonesia faces di cult trade-o s, such as prioritising domestic biofuel policies (B45-B50) over exports. Additionally, smallholder farmers, who manage nearly 50% of Indonesia’s palm oil plantations, o en lack the knowledge and resources to identify and combat Ganoderma early, exacerbating yield losses.

Given the severe implications of Ganoderma infestation, an integrated approach is required to mitigate its spread. e establishment of the Ganoderma Consortium by the Indonesian Palm Oil Association (GAPKI) marks a step forward in addressing this crisis. e consortium aims to develop a comprehensive database, enhance farmer education, and promote the adoption of resistant planting materials.

However, access to disease-resistant seedlings remains limited due to high costs. To ensure industry sustainability, increased investment in rapid diagnostic tools, precision agriculture technologies like drones, and rigorous plantation monitoring is essential.

Ganoderma represents a signi cant challenge to Indonesia’s palm oil industry, threatening both national economic stability and global supply chains. e lack of accurate data, outdated assumptions about the disease’s spread, and insu cient control measures have exacerbated the crisis.

Immediate action is required, including enhanced data collection, farmer education, and investment in disease-resistant palm varieties. Failure to address this issue promptly could lead to further production declines, increased economic losses, and jeopardised food and energy security. e time for coordinated, science-driven intervention is now.

Actionable Insights to the Private Sector

Plantation companies should actively use the “Si Gano” app to report cases of Ganoderma infections. is will improve disease tracking and help formulate better mitigation strategies.

Internal monitoring systems: Companies should implement their own remote sensing, drones, and AI-based detection tools to identify early-stage Ganoderma infections and prevent further spread.

Collaborate with GAPKI & researchers: Companies should participate in the Ganoderma Consortium and support research into the disease by sharing real-time infection data and test results.

Diversi ed planting strategies: Given that monoculture practices exacerbate Ganoderma spread, plantations should incorporate intercropping or alternative agroforestry models to reduce disease risk.

Soil & organic matter management: Companies should implement better soil health practices, such as microbial treatments and organic soil enhancers, to improve palm resilience.

Best practices training for farmers: Educating smallholders about early detection, preventive measures, and replanting strategies can reduce infection rates and productivity losses.

03 Policy

Advocacy & Industry

Coordination

Push for government-backed incentives: Companies should lobby for tax breaks, research grants, or public-private partnerships to accelerate research on disease-resistant varieties and mitigation technologies.

Regional & global knowledge sharing: Engaging with Malaysia’s MPOB and international research institutions can help Indonesia adopt best practices in Ganoderma control and prevention.

Supply Chain Risk

Mitigation

Diversi ed sourcing & production planning: CPO exporters and biodiesel producers should anticipate potential supply disruptions and secure contracts from multiple suppliers to mitigate risks.

Technology adoption in processing & storage: Investing in better processing techniques to extract maximum yield from infected but salvageable palms can help minimise economic losses.

Decoding Palm Oil: Essential Insights for Balanced and Informed Sustainability Conversations Part II

fuels compared to other oilseeds, making it a model of meeting global oil demands.

Upg rading Livelihoods

clean water, electricity, healthcare, connectivity, education in plantation and places of worship, enriching countless lives in the plantation landscapes.

Malaysia’s advanced plantation management, bolstered by industr y-funded research and development, has processing, food and oleochemicals have spurred economic growth, creating jobs, generating wealth, and and improve social well-being.

Source: Oil World & MPOB

Palm Oil Position in Global Oils and Fats 2024

Palm Oil as Beacon of Socio-Economic Empowerment

Maybank Investment Bank’s report titled “ESG on

O verlooked,” highlighted the plantation sector’s crucial role in Malaysia. Despite facing rising costs and reduced productivity, the sector proved to be a robust pillar, contributing over RM23 billion to government revenues through various taxes and levies. From 2020 to 2023 over Covid-19 pandemic, the plantation industr y provided approximately in export duties, RM1.3 billion in MPOB cess, RM0.2 billion in Prosperity Taxes, over RM6 billion in Sabah and Sarawak sales taxes, and more than

a major tax contributor, with its revenue playing a vital role in sustaining the nation.

Pover ty Allev iation

RM3,809.50 RM105B

Perfomance of Malaysian Palm Oil Industr y in 2023

land schemes, improving infrastructure, and providing land and management ser vices to small farmers.

Global Food Security

Palm oil is competitively priced against other edible oils. It is vital to global food security,, with Malaysian exports reaching over 3 billion people across more than 150 countries (MPO C). As populations grow and arable land global hunger.

Removing it could destabilise economies, disrupt supply chains and worsen food insecurity, particularly for millions.

overlooked. Alike Cinderella, PKO was crucial in producing personal care, sanitising and cleaning products, highlighting its role as more than just a commodity. During a critical period, PKO proved to be a lifeline for

T Le

for centuries.

fats in palm oil are mainly oleic acid, a type of monounsaturated fat that's good for your health. On the other hand, the main saturated fat in palm oil is palmitic acid. Unlike some other saturated fats, palmitic acid doesn't increase cholesterol.

In a market saturated with oils containing trans fats and other unhealthy additives, palm oil is a trans-fat-free alternative that supports a balanced diet. By incorporating palm oil into your meals, you product that delivers essential nutrients and supports overall health, proving that wisely chosen dietar y fats are essential for well-being

Health experts agree that fats are vital for a balanced diet, enabling the absorption of essential fat-soluble vitamins - A, D, E and K. Despite scepticism about fats per se, they are crucial for optimal health. Palm oil stands out for providing a balanced ratio of both unsaturated and saturated fatty acids. It is particularly noted for its cardiovascular health.

B oth processed and unprocessed palm oil are nutritional powerhouses, rich in tocopherols and tocotrienols, neutralising harmful free radicals that can damage cells and tissues.

Also to note that crude palm oil is especially high in carotenoids, which are precursors to vitamin A. Vitamin A supports healthy vision and acts as a potent antioxidant, further enhancing palm oil's role in combating oxidative

oxidative stress. Palm oil also excels in cooking due to its stability under heat. It maintains its nutritional integrity during fr ying and other high-heat methods, unlike some oils that can degrade and also produce harmful compounds at high temperature.

Matchless Palm Oil’s Versatility and Essentiality

Palm oil stands out for its exceptional versatility, uni widespread availability, making it a critical in multiple sectors. Its unparalleled adaptability indispensable in food, cosmetics, personal care and industrial applications. In the cosmetics and personal care sectors, palm oil is a key component in products such as soaps, shampoos, lotions and makeup Its natural properties enhance the texture and

Orange: 21; Banana: 50; Tomato: 130; Carrot: 400; Re

In the food industr y, especially in Asia, palm oil is integral to a broad array of products, including baked goods, snacks, and beverages. Its distinct functionalities, such as stability at high temperatures and resistance to oxidation, make it nearly irreplaceable compared to other edible oils.

One of palm oil's standout features is its ability to be separated and blended for diverse uses. It can be tailored for makes palm oil a top choice for food manufacturers who require a versatile and functional fat. B eing semi-solid at room temperature, palm oil is particularly advantageous for products like margarine In contrast, oils such as high temperatures.

main components: olein (a liquid portion) and stearin (a solid portion). Olein is commonly used as cooking oil, while stearin is utilised as a solid fat. Further fractionation of these components yields many other specialised products such as super olein, palm mid-fraction, super stearin and mid-stearin, each with unique physical characteristics and applications.

consumers concerned about GMO foods and seeking halal options, it is important to note that palm oil meets both of these criteria.

Cooking Oil

Frying Fats

Shortening/Dough Fats

Vegetable Ghee

Margarine

Specialty Fats for Coatings

Ice Cream Fats

Chocolate Fats

Milk Fats Replacers

Butter Oil Substitutes

Confectionery Fats

Non-dairy Creamer

PMF: Palm Mid Fraction; PS: Palm Stearin

Source: Malaysia Palm Oil Council (1995a)

OIL PALM MINISTRY, ITS AGENCIES AND RELATED ASSOCIATIONS

Ministry of Plantation and Commodities (KPK) www.kpk.gov.my

Malaysian Palm Oil Association (MPOA) www.mpoa.org.my

Sarawak Dayak Oil Palm Planters Association (DOPPA) www.doppa.org

Badan Pengelola Dana Perkebunan Kelapa Sawit (BPDPKS)

Indonesian Palm Oil Plantation Fund Management Agency https://www.bpdp.or.id/

Asosiasi Petani Kelapa Sawit Mandiri (APKSM) Independent Palm Oil Farmers Association

Malaysian Palm Oil Board (MPOB) www.mpob.org.my

Malaysian Palm Oil Council (MPOC) www.mpoc.org.my

Malaysian Sustainable Palm Oil (MSPO) www.mspo.org.my

Malaysian Palm Oil Green Conservation Foundation (MPOGCF) www.pkpkm.org.my

Malaysian Estate Owners' Association (MEOA) www.meoa.org.my

National Organisation of Smallholders (NASH) www.pkpkm.org.my

Sarawak Oil Palm Plantation Owners Association (SOPPOA) www.soppoa.org.my

East Malaysia Planters' Association (EMPA) www.theempa1889.wixsite.com/empa

Incorporated Society of Planters (ISP) www.mapa.net.my

Malaysian Agricultural Producers Association (MAPA) www.mapa.net.my

INDONESIA

Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI) Indonesian Palm Oil Association https://gapki.id/en/

Forum Pemuda Sawit

Indonesia (FPSI) Indonesian Palm Oil Youth Forum

https://www.forumpemudasa wit.or.id/

Indonesian Oil Palm Research Institute (IOPRI) Pusat Penelitian Kelapa Sawit (PPKS) https://iopri.co.id/

Gabungan Pengusaha Perkebunan Indonesia (GPPI) Indonesian Plantation Entrepreneurs Association https://www.gppindonesia.com/

Palm Oil Agribusiness Strategic Policy Institute (PASPI) https://palmoilina.asia/

Indonesian Planter Society (IPS) Masyarakat Planter Indonesia https://www.ips-planter.o r.id/

Asosiasi Petani Kelapa Sawit

Indonesia (APKASINDO)

Indonesian Palm Oil Farmers Association

https://dpp-apkasindo.com/

Serikat Petani Kelapa Sawit (SPKS)

Indonesian Oil Palm Smallholders Union https://spks.or.id/

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