Top PDF The Export Supply Of Indonesian Crude Palm Oil (CPO) To India

The Export Supply Of Indonesian Crude Palm Oil (CPO) To India

The Export Supply Of Indonesian Crude Palm Oil (CPO) To India

Minyak sawit merupakan salah satu dari jenis minyak nabati yang paling banyak dikonsumsi dunia di samping minyak kedelai, minyak kanola dan minyak biji bunga matahari. Salah satu produsen terbesar minyak sawit di dunia adalah Indonesia sedangkan konsumen terbesarnya adalah India. Penelitian ini dilakukan untuk menganalisa laju pertumbuhan ekspor CPO Indonesia ke India tahun 2003 sampai 2015 serta faktor-faktor yang memengaruhi ekspor CPO Indonesia ke India tahun 1990 sampai 2015. Metode yang digunakan adalah analisis pangsa pasar dengan perhitungan pertumbuhan standar untuk mengukur laju pertumbuhan serta metode Error Correction Model (ECM) untuk mengetahui faktor yang berpengaruh pada jangka pendek dan jangka panjang. Faktor-faktor yang diujikan dalam penelitian ini antara lain harga CPO internasional, harga minyak kedelai, bea ekspor CPO Malaysia dan bea ekspor CPO Indonesia. Hasil analisis menunjukkan bahwa laju pertumbuhan ekspor CPO Indonesia ke India berfluktuatif serta volume ekspor CPO Indonesia oleh India dipengaruhi oleh bea ekspor CPO Indonesia secara negatif dan signifikan baik dalam jangka panjang maupun dalam jangka pendek. Kata kunci : CPO, ECM, ekspor, India
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Analysis of Factors Affecting the Competitiveness of Indonesian Crude Palm Oil (CPO) Export in the Global Market

Analysis of Factors Affecting the Competitiveness of Indonesian Crude Palm Oil (CPO) Export in the Global Market

One of the agricultural sub-sectors that significantly contribute to Indonesian economy is plantation. The plantation commodity that produces the largest amount of foreign exchange is palm oil which is exported in the form of crude palm oil (CPO). Palm oil is also an important element for a number of food and cosmetic products, in addition regarded as the cheapest source of vegetable oil in the international market [3] [4]. This condition is one of the causes of the rapid development of oil palm plantations in the tropics, especially Southeast Asia. Since 2009, Indonesia has become the largest producer of palm oil in the world [5] [4]. From 2010 to 2014, Indonesia was the largest CPO producing country in the world with an average contribution of 48.44% of the global CPO production [6].
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THE IMPACT OF CRUDE PALM OIL PRICE ON RUPIAH’S RATE

THE IMPACT OF CRUDE PALM OIL PRICE ON RUPIAH’S RATE

The fluctuation of CPO price may affect the export value. The higher the world price of CPO, the higher the foreign exchange generated. On the other hand, the increase in domestic price of the CPO will affect the money in circulation. The budget deficit also affects the inflation as expressed by Oladipo and Akinbobola (2011). On certain condition, a high growth may also trigger inflation (Umaruand Zubairu, 2012).This argument was supported by Ramli (2012) who argued that the economic growth has a strong impact on money supply and inflation. The existing inflation in turn may eventually lead the Rupiah to appreciate.
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Modeling policy mix to improve the competitiveness of Indonesian palm oil industry

Modeling policy mix to improve the competitiveness of Indonesian palm oil industry

Globalization has caused an interdependency among nations which is characterized by openness of domestic market to products from other countries. The transformation of global economy leads to a strong competition among industry sectors in every country, to gain global market share. As a consequence, an industry has to have a high level of competitiveness. In order to increase the competitiveness, we have to solve the obstacles in the industry chains, government regulation and policy, and also international economic environment. In achieving this, the role of government to support the industry is very important. A study by Lall (2004) showed that government should take part in dealing with the globalization and technology changes. The causality between elements of public policy, private management strategy and industry competitiveness is critical (Martin, Westgren & van Duren, 1991). Lall (2004) has shown that government intervention was needed to support the increase in competitiveness. Palm oil industry has became Indonesia’s economical main sector. Indonesia has become the largest producer of Palm Oil since 2007, and since 2009 has also become the largest exporter (Figure 1). The palm oil industry has a lengthy processes and many final products, but in Indonesia, the export markets are dominated by the raw products, namely Crude Palm Oil (CPO). This way, Indonesian export relies heavily on a low added value commodities. If the proportion of final products can be raised, income from export will eventually increase, and at the same time will improve the competitiveness of the industry as well. In this industry, environmental issues also exist, where the products should be from environtmentally and socially sustainable plantation. In response of this the Roundtable on Sustainable Pelm Oil was formed. RSPO developed global standards and requirements to ensure that the palm oil product is environtmentally and socially sustainable. The prove that the product meet the requirement is that the product earn certified sustainable palm oil (CSPO) label.
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On The Profitability of Sustainability Certification: An Analysis among Indonesian Palm Oil Smallholders

On The Profitability of Sustainability Certification: An Analysis among Indonesian Palm Oil Smallholders

In the long-term, the receipt of a premium price is uncertain as it relies on the policies of affiliated companies to provide an incentive for independent smallholders of being certified and applying the best management practices. If the independent smallholders do not receive premium prices anymore, but nonetheless pay all certification costs themselves, certification adoption is no longer profitable for them: the NPV will go down by 5%. In this case, the independent smallholders need to receive a minimum of $29.7/ ton CPO to reach the break-even point. Considering the rate of the actual premium fee for independent smallholders, which reaches $15/ton (Wangrakdiskul & Yodpijit, 2013), the sustainability certification may only be profitable for independent smallholders if they receive a premium fee that is 93% higher than the actual premium fee. However, this seems to be an unrealistic situation, particularly as the supply of Crude Sustainable Palm Oil (CSPO) is already much higher than the demand, leading to an oversupply of 55%1. Given this oversupply, it is unlikely that premium fees will increase dramatically. Therefore, certification will likely not be profitable for independent smallholders in the self-funded scenario wherein premium prices will be cut.
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A cointegration analysis of crude palm oil price in Thailand

A cointegration analysis of crude palm oil price in Thailand

In the case of Thailand, the production volumes of Thailand may be small compared to that of leading countries, Indonesia and Malaysia. It can sufficiently produce and supply palm oil for the domestic market and export the surplus to its neighbouring countries [7]. The trend of palm oil supply and demand in Thailand is continuously increasing. Several projects were supported by the government to expand oil palm cultivation areas [8]. Its demand increased because the palm oil price is affordable compared to other edible oils and is used as an input to other industries and biodiesel production. High demand for palm oil and greater yield at a lower cost in the production of oil palm makes palm oil industry worthy of attention. Therefore, to create a stable and sustainable industry for the long-run, the effects of global price changes on palm oil price are essential to study. This study employed a cointegration analysis of price transmission from global prices to crude palm oil price in Thailand. An excellent understanding of the price mechanism and its determinants will encourage and support the productive production [9].
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The Sustainability of Three Indonesian Palm Oil Business Entities

The Sustainability of Three Indonesian Palm Oil Business Entities

expectation from those activities, namely, competitive advantage. This emphasizes the institutional context and potential interaction effect between the companies and explains the reason why the companies are engaged in a pro-environment behavior in developing countries. To observe the small and medium enterprises involved in social activities and environmental responsibilities and stakeholders involved as primary drivers can result in competitive advantage while ISPO itself is a tool to see whether the company has implemented regulations that are the cornerstone of sustainability in Indonesia. Sustainability needs to be applied in agribusiness sector, especially in oil palm plantation according to Ekpo and Umoh (2014) who discussed that Nigeria was previously was the largest palm oil producer in the world and the largest maize exporter in Africa, but it started to import those products in the end of 1980s, and Nigerian economy currently has a negative economic growth. Sustainable development process cannot rely on the income from unreliable and unsustainable sources so that Alabi (2015) explained the need of sustainable development and showed the radical change in the way of crude oil processing and export used in Nigeria. Sustainability in the process also has been widely considered to cause less pollution and destruction on the environment. These views on sustainability sometimes can affect the definition of sustainable development and eventually affects the formula and institutions of policy in many countries.
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The Sustainability of Indonesia Pakistan Palm Oil Supply Chain

The Sustainability of Indonesia Pakistan Palm Oil Supply Chain

The wide options of vegetable oils, the government interventions in palm oil trade and the competition between Indonesia and Malaysia could lead to high fluctuations in Pakistan’s palm oil demand from each exporting country, including Indonesia. Currently, Indonesia exports more than 70% of its palm oil total production and recorded as the highest export income contributor (Statistics Indonesia, 2015). This is likely stemmed from the low selling price of Indonesia palm oil. Therefore, this study assumed that if the price could remain competitive, the Indonesia Pakistan palm oil supply chain could be sustained. Such hypothesis will be tested by analyzing (i) the influencing factors of Pakistan palm oil import volume from Indonesia (ii) the price co-integration in the Indonesian-Pakistan palm oil supply chain and (iii) the adjustments of the short run dynamics towards the long run equilibrium. Results of this study are expected to provide robust information for policy makers in maintaining Pakistan as a significant importer for Indonesian palm oil.
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The Sustainability of Indonesia Pakistan Palm Oil Supply Chain

The Sustainability of Indonesia Pakistan Palm Oil Supply Chain

The wide options of vegetable oils, the government interventions in palm oil trade and the competition between Indonesia and Malaysia could lead to high ÀXFWXDWLRQV LQ 3DNLVWDQ¶V SDOP RLO GHPDQG IURP HDFK exporting country, including Indonesia. Currently, Indonesia exports more than 70% of its palm oil total production and recorded as the highest export income contributor (Statistics Indonesia, 2015). This is likely stemmed from the low selling price of Indonesia palm oil. Therefore, this study assumed that if the price could remain competitive, the Indonesia Pakistan palm oil supply chain could be sustained. Such hypothesis ZLOO EH WHVWHG E\ DQDO\]LQJ L WKH LQÀXHQFLQJ IDFWRUV of Pakistan palm oil import volume from Indonesia (ii) the price co-integration in the Indonesian-Pakistan palm oil supply chain and (iii) the adjustments of the short run dynamics towards the long run equilibrium. Results of this study are expected to provide robust information for policy makers in maintaining Pakistan DV D VLJQL¿FDQW LPSRUWHU IRU ,QGRQHVLDQ SDOP RLO
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The Pursuit of Sustainability in the Indonesian Palm Oil Industry

The Pursuit of Sustainability in the Indonesian Palm Oil Industry

In 2015, the percentage of global palm oil consumption per country was as follows, the top four largest consumers were Indonesia (17%), India (15%), EU (11%) and China (9%) (WWF India 3). Except for Indonesia, the other three countries supply their demand for palm oil consumption with imports mainly from Indonesia and secondly Malaysia. Indonesia supplies its own demand with their domestic production of palm oil. If the companies in the major importing countries also fully commit to source only certified sustainable palm oil this will ensure a future demand of sustainable palm oil and consequently also the supply. The major palm oil suppliers, Indonesia and Malaysia, are then largely forced to produce a supply of sustainable palm oil because there is primarily demand for sustainable palm oil. However, to achieve this, the awareness and urgency about the impacts of the palm oil industry on the environment and biodiversity need to be raised among the government of these countries. When the governments neglect such a commitment, the companies in the largest consumer countries, that are in the palm oil supply chain need to be made aware. Therefore the following three benefits of sourcing sustainable palm oil need to be highlighted for the companies in order to convince them. First, they will earn the reputation of a responsible businesses that takes its responsibility for their ecological footprint. Second, the companies are able to compete in global markets like Europe, where sustainable palm oil is a prerequisite in 2020 for large palm oil importing countries and hopefully in the future also in other major markets. Third, the certainty that their business is not part of illegal activities and
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An analysis of price and volatility transmission in butter, palm oil and crude oil markets

An analysis of price and volatility transmission in butter, palm oil and crude oil markets

adequate and stable prices for particular dairy commodities, such as butter and SMP. In turn, it was expected that the enhanced returns from these commodities would be transmitted to the farm gate price for milk. This aim was mainly achieved by purchas- ing to intervention stores, setting production quotas, export refunds, import tariffs and subsidized consumption. These measures resulted in isolating EU dairy commodity prices from lower and more volatile World prices. However, more recent changes to the CAP, and in particular the Luxembourg 2003 agreement, resulted in a greater mar- ket orientation with a lower level of price support (intervention buying, 9 import tariffs and export refunds) for EU dairy commodities. To compensate for the resultant losses, the Single Payment Scheme (SPS) was introduced to provide income support at farm level. In addition, the supply quota, introduced in 1984, expired in 2015. This aim of bringing EU dairy prices more in line with World prices was observed in O ’ Connor and Keane (2011) who reported a convergence of volatility between EU and World dairy commodity prices. A more comprehensive discussion of the CAP policy changes can be found in Keane and O’ Connor (2015).
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Multistage methanolysis of crude palm oil for biodiesel production in a pilot plant

Multistage methanolysis of crude palm oil for biodiesel production in a pilot plant

tal mass, Canakci and Sanli (2008). Some of the groups and components must be removed partially or completely through refining process to meet the desired feedstock specification. Free fatty acid (FFA) is the fatty acid that is not bound on the glycerol backbone of triglycerides. FFA originates from the breakdown of triglycerides into its component fatty acid and glycerol units, and results from the exposure of triglycerides to moisture or from enzymatic processes. Copeland and Belcher (2002) reveals that a high FFA in a vegetable oil generally indicates that the oil was poorly processed or that there has been some triglyceride break- down after refining. FFA also indicates the degree of purity of oil. A purer oil posses a lower value of this number. Kima, Kim, Lee, and Tak (2002) recom- mends that phospholipid commonly referred to as gums must be removed because of their strong emulsifying action. This component causes an undesirable flavor and a coloring pigment. The emulsifying action is therefore the main suspect causing the oxidative instability of the crude palm oil. Moreover, phospholipids contain phosphorus, nitrogen bases and sugars are the main suspect that needs to be removed totally in the degumming by coagulating the phosphatides contents with phosphoric acid as reported in Morad et al. (2006) and Akoh and Min (2008).
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The Empirical Analysis on Prices of the Malaysian Crude Palm oil Futures Market

The Empirical Analysis on Prices of the Malaysian Crude Palm oil Futures Market

The potential uses of these findings are numerous. Hedgers may benefit from this information when deciding upon the appropriate futures contract to be used. They should be aware that any information about the supply conditions of the crude palm oils will have an effect on spot prices, which make it more concern in identifying the appropriate tools to analyse it. The cointegration results imply that it may be possible to hedge whether in the long term or short term in the Malaysian crude palm oil futures market in order to reduce their risks. Investors also have to realise that by hedging in the futures market can benefit them not only reduce losses but can diversify the risk to it. On the other hand, the causal relationships discovered in the studies may be useful to both traders and speculators in using their arbitrage opportunities between the cash (spot) and futures contracts.
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Overview of trends in crude palm oil production and economic impact in Malaysia

Overview of trends in crude palm oil production and economic impact in Malaysia

The decreased in CPO production in 2010, 2012 and 2016 were a result of unfavorable weather conditions caused by the El-Nino and La-Nina phenomena [27]. El- Nino and La-Nina, two phenomenon that occurs due to the variation in the ocean temperatures of the equatorial pacific could lead to extreme changes in levels of rainfall and significantly affect CPO production. As a consequence, when rainfall reduces, the FFB development stage could be stressed and cause low FFB yield. However, at higher than average rainfall, CPO production also decreases [28]. Oil palm, as a tropical plant requires annual rainfall of about 1500-2000 mm or more, without a defined dry season. Oil palm also requires maximum and minimum temperatures in the range of 29-33C and 22-24 C, respectively for optimal growth and production. A constant sunlight of about 5 hours/day is necessary for quality yield [28, 29]. CPO production occasionally decreases when these climatic conditions are not favorable for the oil palm tree.
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Physicochemical characteristics of high free fatty acid crude palm oil

Physicochemical characteristics of high free fatty acid crude palm oil

The currently evolving climate, torrential rainfall, humidi- ty and inadequate storage result in the breakdown of TAGs and release of FFAs. Consequently, the increasing FFAs level in CPO, exceeding 5%, makes it unhealthy for human consumption (Ngando Ebongue et al., 2008). Nonetheless, the quality of the palm oil is influenced by its FFAs content. Normally, the FFAs content of good quality crude palm oil should not exceed 5% (Adjei-Nsiah et al., 2012). Therefore, crude palm oil (CPO) with FFAs percentage of less than 5% is valuable for food applications or oleochemicals. Conversely, FFAs percentage exceeding 5% indicates the CPO can be beneficial for non-food applications such as bioplastics, biodiesel and biolubricant similar to other plants oil (Salih et al., 2013a, 2013b). Thus, the quantitative analysis of the oil is tremendously significant in order to determine the applicability of CPO either in the food industry or non-food applications such as surfactants (Harun et al., 2013; Hong et al., 2013). This study quantitatively characterizes the physicochemical properties and composition of HFFA-CPO and LFFA-CPO.
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Use of headspace–gas chromatography–ion mobility spectrometry to detect volatile fingerprints of palm fibre oil and sludge palm oil in samples of crude palm oil

Use of headspace–gas chromatography–ion mobility spectrometry to detect volatile fingerprints of palm fibre oil and sludge palm oil in samples of crude palm oil

Topographical plots of spiked dispatch tank palm oil samples To determine whether the two residual oils could be detected in real-life mill scenarios, CPO samples were obtained from dispatch tanks (DTs) at four geographi- cally diverse processing mills and were spiked in the same manner as the lab-pressed CPO, using 4–5 different spik- ing concentrations (see Additional file 1: Table S1). They were analysed and compared to the spectra of the spiked lab-pressed CPO to determine whether the fingerprints matched.

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PALM OIL AS FEEDSTOCK FOR BIODIESEL : PRODUCTION & EXPORT FROM MALAYSIA

PALM OIL AS FEEDSTOCK FOR BIODIESEL : PRODUCTION & EXPORT FROM MALAYSIA

* Biodiesel plant viability improves with integration of phytonutrients production (vitamin E & carotene). BIODIESEL BUSINESS VIABILITY.[r]

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Crude Palm Oil Prediction Based on  Backpropagation Neural Network Approach

Crude Palm Oil Prediction Based on Backpropagation Neural Network Approach

Indonesia is the largest crude palm oil (CPO) producer in the world. In 2018, Indonesia produced 43 million tons of CPO from 14.03 million hectares plantation. Consequently, it gives significant contribution to the national economy [1][2][3] . CPO production management is very necessary. Therefore, it should be supported with precise estimation based on production data in previous years. Numerous methods are used in order to obtain accurate prediction results such as statistical methods (i.e., ARMA, ARIMA, SARIMA, and ES) and intelligent computing methods (i.e., fuzzy logic, neural network) [4][5][6][7] . A research by [8] used SARIMA method to predict crude palm oil, in Terengganu, Malaysia. The dataset of CPO and palm kernel from June 2001 until May 2011 was used. The results showed that the SARIMA method was able to predict quite well. Furthermore,
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Forecasting on Crude Palm Oil Prices Using Artificial Intelligence Approaches

Forecasting on Crude Palm Oil Prices Using Artificial Intelligence Approaches

An accurate prediction of crude palm oil (CPO) prices is important especially when investors deal with ever-increasing risks and uncertainties in the future. Therefore, the applicability of the forecasting approaches in predicting the CPO prices is becoming the matter into concerns. In this study, two artificial intelligence approaches, has been used namely artificial neural network (ANN) and adaptive neuro fuzzy inference system (ANFIS). We employed in-sample fore- casting on daily free-on-board CPO prices in Malaysia and the series data stretching from a period of January first, 2004 to the end of December 2011. The predictability power of the artificial intelligence approaches was also made in regard with the statistical forecasting approach such as the autoregressive fractionally integrated moving average (ARFIMA) model. The general findings demonstrated that the ANN model is superior compared to the ANFIS and ARFIMA mod- els in predicting the CPO prices.
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Pencapaian Standar Indonesian Sustainable Palm Oil (ISPO) Dalam Pengelolaan Perkebunan Kelapa Sawit Di Kalimantan Timur / Achievement of Indonesian Sustainable Palm Oil Standards of Palm Oil Plantation Management in East Borneo Indonesia

Pencapaian Standar Indonesian Sustainable Palm Oil (ISPO) Dalam Pengelolaan Perkebunan Kelapa Sawit Di Kalimantan Timur / Achievement of Indonesian Sustainable Palm Oil Standards of Palm Oil Plantation Management in East Borneo Indonesia

Kemampuan perusahaan perkebunan kelapa sawit di Kalimantan Timur saat ini (existing condition), dalam memenuhi standar prinsip dan kriteria Indonesian Sustainable Palm Oil (ISPO) secara umum telah mencapai 79.14% (cukup baik). Capaian tersebut masih berpotensi untuk dapat ditingkatkan menjadi 100% jika program- program yang berkaitan dengan pemenuhan prinsip dan kriteria ISPO yang masih rendah nilai pencapiaannya dilaksanakan disertai dengan adanya dukungan kerjasama dari stakeholders lainnya. Faktor penentu capaian penerapan standar ISPO adalah komitmen perusahaan perkebunan sebagai pelaku usaha yang didukung oleh suberdaya manusia yang memadai untuk mewujudkan pem- bangunan perkebunan berkelanjutan serta peran pemerintah selaku penentu regulasi dalam mengawal kebijakan yang telah ditetapkan. Secara operasional sosialisasi dan pelatihan kepada perusahaan perkebunan sebagai upaya percepatan pemberlakuan standar ISPO perlu dilakukan oleh pemerintah bersama komisi ISPO agar kendala- kendala dalam pencapaian standar prinsip dan kriteria Indonesian Sustainable Palm Oil dapat diatasi, karena upaya tersebut merupakan bagian dari success factor penerapan ISPO.
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