Indonesia, the Largest Producer of Palm Oil in the World

medcom.id, Jakarta: Chairman of Indonesian Palm Oil Board, Derom Bangun, said Indonesia is one of the countries with the predicate of the largest crude palm oil (CPO) producer and exporter.
 
Derom mentioned that in an Export Forum titled 'Palm Oil As An Indonesian Export Prime Mover', which is part of the series of events in the Trade Expo Indonesia (TEI) 2015, in Hotel Borobudur, Central Jakarta.
 
"In the development, Indonesia's CPO export grew very fast. In the early years of production, Malaysia produced 330,000 tons, while Indonesia had half of it, at 160,000 tons. Currently, Indonesia's products rose more than 100 times," said Derom, Tuesday (10/20/2015).

Derom explained that the palm oil export in Indonesia has shown significant improvement within the past 20 years. Even then, within the timeline, domestic CPO production grew 15 times.
 
"In 1995, our CPO export was as much as two million tons. Then rose to 2.5 million tons in 2001. Ten years later, it become 12 million tons in 2011, and 23 million tons in 2014," said Derom.
 
He thinks that with the improvement, Indonesia succeeded in overcoming the neighboring country Malaysia as the CPO exporter. Not only Malaysia, on CPO export, Indonesia has beaten the United States.
 
"Malaysia also increased but only from five million to 12 million tons. The US export was only 4.7 million tons. As on foreign trade, Indonesia has the largest export of natural oil in the world," he explained.
 
Derom targeted the production of CPO this year to reach 31.25 million tons. In 2016, it is targeted that the CPO production will reach 33 million tons, as added with the palm essence oil. However, the development was not without obstacles.
 
He assessed that many obstacles should be faced, such as what happened in the year 2000, where the palm oil was contaminated with diesel, as it made the export to Europe and neighboring countries delayed.
 
Moreover, Derom emphasized that currently the players on palm oil should unite in conducting promotion and advocation. "Our export is the largest, but there's a weakness compared to other exporters, which is less promotion and advocation compared to other producing countries such such as Malaysia," he mentioned. 
 
He added that Indonesian palm may be developed fantastically. Unfortunately the domestic absorption was not maximized, as it is still focusing on export. 
 
"The development of Indonesian palm oil is still dominated by export. Despite many efforts being done to enlarge the domestic market, such as the B15 percent mandatory, it is still not significant in increasing the local consumption," he concluded.
 
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