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EDITOR’S

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It’s the second issue of 2022! For the past few months we have seen few events happening around the world, with most significant one, the Russia’s war against Ukraine. The war has menacing global grain production and the supply of edible oils. This has caused basic commodities price to skyrocket. Indonesia faces an increase in cooking oil price over the past few months

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Publications Manager Amelia Lim

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and has required companies to sell 30% of their planned export volume of palm oil products. This is to ensure local supply under a domestic market obligation (DMO). The global food crisis sparked by the Russia’s invasion of Ukraine has caused Indonesia to tighten curbs on palm oil exports. This war has also caused the Black Sea Asian and European refiners to raise their palm oil purchases to replace sunflower oil and has also skyrocketed palm oil to irrational price levels never seen before! Most of the additional demand for palm oil is fulfilled by both Indonesia and Malaysia and the stocks are depleting fast because of the surge in demand. On behalf of the editorial team, thank you for your continuous support towards Palm Oil Today Indonesia Magazine. Stay in touch with us on www.indopalmoil.com

Paulina

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Till the next edition! Cheerios!

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Palm Oil Today Indonesia

April - June 2022

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CONTENTS//

Palm Oil Today Indonesia

April - June 2022

APRIL - JUNE 2022

BERITA REGIONAL / REGIONAL NEWS 6

(BHS) : Indonesia akan menghapus batas harga minyak goreng, memperkenalkan subsidi untuk memastikan pasokan (ENG) : Indonesia to scrap caps on cooking oil price, introduce subsidy to ensure supply (BHS) : Pasar global tidak dapat mendikte kebijakan minyak kelapa sawit Indonesia : menteri (ENG) : Global market can’t dictate indonesia palm oil policy: minister (BHS) : Indonesia berpaling mengganti pembatasan ekspor minyak kelapa sawit dengan retribusi (ENG) : Indonesia takes u-turn to replace palm oil export curbs with levy (BHS) : Tenaga kerja asing untuk perkebunan kelapa sawit Malaysia didatangkan pada bulan mei, juni (ENG) : Foreign workers for Malaysia’s palm plantations to arrive in may, june (BHS) : Pajak tak terduga atas minyak kelapa sawit melebihi rm1 miliar pada tahun 2022, kata menteri Malaysia (ENG) : Windfall tax on palm oil to exceed rm1bil in 2022, says Malaysian minister (BHS) : Malaysia tidak mungkin menghadapi kekurangan minyak goreng meskipun ekspor ditingkatkan (ENG) : Malaysia unlikely to face cooking oil shortage even if palm oil export is ramped up

BERITA DUNIA / WORLD NEWS 16

19 20

BERITA UTAMA / COVER STORY 21

(BHS) : Alternatif bebas deforestasi dan karbon negatif untuk minyak kelapa sawit (ENG) : Deforestation free and carbon negative alternatives for palm oil

BERITA PENYULINGAN / REFINERY NEWS 23

(BHS) : Bursa Malaysia derivatives menyelesaikan pengiriman fisik pertama minyak kelapa sawit mentah berjangka dari malaysia timur di sabah (ENG) : Bursa Malaysia derivatives completes first physical delivery of east malaysia crude palm oil futures in sabah

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(BHS) : tanzania: pemerintah mendorong penggunaan teknologi modern dalam produksi minyak kelapa sawit (ENG) : tanzania: govt encourages use of modern tech in palm oil production (BHS) : India mendapatkan bantuan dari malaysia untuk meningkatkan jejak perkebunan kelapa sawitnya (ENG) : India to get technical help from malaysia to increase its palm oil plantation footprints (BHS) : Zuraida mengecam as atas larangan minyak kelapa sawit sdp (ENG) : Zuraida slams us over sdp palm oil ban (BHS) : GFP-SPO menjadi bahasa umum di seluruh skema sertifikasi minyak kelapa sawit - CPOPC (ENG) : GFP-SPO to be common language across palm oil certification schemes - CPOPC

Palm Oil Today Indonesia

April - June 2022

WAWASAN / INSIGHTS 26

(BHS) : Pangsa pasar minyak kelapa sawit : faktor utama (ENG) : Palm oil shares : key factors

BERITA KEBERLANJUTAN / SUSTAINABILITY NEWS 29

(BHS) : FGV memperkenalkan produk gulma ramah lingkungan untuk sektor pertanian (ENG) : FGV introduces environment friendly weeding product for agri sector

IN THE HOT SEAT 30

(ENG) : Ensuring the Sustainability of Oil Yield through HAUS’ Decanter Centrifuge

INOVASI & TEKNOLOGY / INNOVATION & TECHNOLOGY 34 36

(BHS) : teknologi ai, pesawat nirawak dapat membantu industri minyak kelapa sawit (ENG) : AI, drone tech can help palm oil industry (BHS) : SAP, teknologi blockchain percontoha unilever yang mendukung minyak kelapa sawit bebas deforestasi (ENG) : SAP, unilever pilot blockchain technology supporting deforestation-free palm oil (BHS) : Teknologi ai dapat menjadi pengubah cara main industri minyak kelapa sawit (ENG) : AI technology can be game changer for palm oil industry

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Palm Oil Today Indonesia

April - June 2022

INDONESIA AKAN MENGHAPUS BATAS HARGA MINYAK GORENG, MEMPERKENALKAN SUBSIDI UNTUK MEMASTIKAN PASOKAN

Pekerja mengeluarkan paket minyak goreng untuk pengemasan akhir di gudang milik Sinar Mas Agro Resources and Technology (SMART) di Marunda. Workers remove packages of cooking oil for final packing at a warehouse owned by Sinar Mas Agro Resources and Technology (SMART) in Marunda.

AKARTA: Indonesia akan menghapus batas harga eceran minyak goreng kemasan dan akan mensubsidi penjualan curah untuk memastikan pasokan di pasar ecer setelah kontrol harga sebelumnya, dalam kelangkaan, kata pejabat senior. Harga global minyak kelapa sawit mentah, yang digunakan Indonesia sebagai minyak goreng, telah melonjak ke tingkat tertinggi dalam sejarah tahun ini di tengah meningkatnya permintaan dan hasil yang kurang dari produsen utama, Indonesia dan Malaysia. Perang di Ukraina juga telah menekan pasokan minyak nabati lainnya, mendorong harga minyak kelapa sawit lebih tinggi. Indonesia juga telah membatasi ekspor minyak kelapa sawit untuk mencoba memastikan pasokan domestik, yang selanjutnya mendorong kenaikan harga. Berdasarkan langkah terbaru, Indonesia akan mengizinkan harga minyak goreng disesuaikan dengan harga pasar minyak kemasan, kata Menko Perekonomian Airlangga Hartarto dalam sebuah rapat singkat virtual. Pemerintah akan menaikkan batas harga minyak goreng curah menjadi 14.000 Rupiah per liter dari 11.500 per liter sebelumnya, dan akan memberikan subsidi, tambahnya. “Kami berharap dengan nilai ekonomi ini, minyak kelapa sawit akan tersedia di pasar modern dan tradisional,” kata Airlangga. Kebijakan baru akan secara efektif menghapus batas harga 14.000 Rupiah untuk minyak goreng kemasan premium dan pagu 13.5000 Rupiah untuk minyak kualitas lapis kedua. Kebijakan tersebut diperkenalkan pada bulan Januari ketika pihak berwenang berjuang untuk mengendalikan harga minyak goreng yang telah naik sekitar 40 persen. Namun, Ombudsman Indonesia telah melaporkan batas harga tersebut tidak meredakan minat pembeli tetapi malah menyebabkan kelangkaan di pengecer modern, bahkan toko-toko membatasi setiap pembeli masing-masing dua liter. Di pasar tradisional, minyak goreng dijual di atas harga yang ditetapkan. Pemerintah pada awal tahun ini telah mengatakan bahwa merekan akan menyisihkan 3,6 trilliun Rupiah (US$251,31 juta) untuk mensubsidi minyak goreng, tetapi rencana itu dibatalkan ketika mereka memberlakukan pembatasan ekspor. Airlangga mengatakan bahwa pihak berwenang mengembalikan subsidi di tengah kenaikan harga komoditas tetapi tidak menjelaskan lebih lanjut. Sebuah badan negara yang memungut retribusi ekspor minyak kelapa sawit, BPDPKS, akan ditugasi untuk mendanai ini, katanya. BPDPKS masih menunggu perhitungan pemerintah untuk besaran subsidi, kata direktur Kabul Wijayanto.

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INDONESIA TO SCRAP CAPS ON COOKING OIL PRICE, INTRODUCE SUBSIDY TO ENSURE SUPPLY

AKARTA: Indonesia will remove retail price caps for packaged cooking oil and will subsidise bulk sales to try to ensure supply at retail markets after previous price controls resulted in a scarcity, senior officials said. Global prices of crude palm oil, which Indonesia uses for cooking oil, have surged to historic highs this year amid rising demand and weak output from top producers Indonesia and Malaysia. The war in Ukraine has squeezed the supply of other vegetable oils, pushing prices of palm oil higher. Indonesia has also restricted palm oil exports to try to ensure domestic supply, which further fed the price upswing. Under the latest measure, Indonesia will allow cooking oil to be priced according to its market price for packaged oils, chief economic minister Airlangga Hartarto said in a virtual briefing. The government will raise the price cap for bulk cooking oil to 14,000 rupiah per litre, from 11,500 per litre previously, and provide subsidies, he added. “We hope that with this economic value, palm oil will be available in both modern and traditional markets,” Airlangga said. The new measure will effectively remove a 14,000 rupiah price cap for premium packaged cooking oil and 13,500 rupiah ceiling for second-tier quality oil. Those were introduced in January as authorities scrambled to control cooking oil prices that had risen about 40 per cent. However, Indonesia’s Ombudsman reported those price caps did not calm buyers and instead led to scarcity at modern retailers, even with shops limiting buyers to two litres each. At traditional markets, cooking oils were sold above the regulated price. The government had earlier this year said it would set aside 3.6 trillion rupiah (US$251.31 million) to subsidise cooking oil, but the plan was scrapped when it introduced export restrictions. Airlangga said authorities were bringing back subsidies amid rising commodity prices but did not elaborate further. A state agency in charge of collecting palm oil export levy, the BPDPKS, will be tasked to fund this, he said. BPDPKS is still awaiting the government’s calculation for the amount of subsidy, director Kabul Wijayanto said.

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REGIONAL NEWS

April - June 2022

PASAR GLOBAL TIDAK DAPAT MENDIKTE KEBIJAKAN MINYAK KELAPA SAWIT INDONESIA : MENTERI

AKARTA: Harga minyak kelapa sawit Indonesia tidak boleh didikte oleh pasar eksternal, jata menteri perdagangannya, mendukung keputusannya untuk meningkatkan pembatasan ekspor minyak kelapa sawit di tengah lonjakan harga global akibat krisis pasokan global. Eksportir utama minyak kelapa sawit dunia mengejutkan pasar sehari sebelumnya dengan mengumumkan bahwa perusahaan kelapa sawit harus menjual 30 persen dari rencana ekspor mereka ke dalam negeri, naik dari 20 persen, yang membuat harga patokan Malaysia melonjak 10 persen. Harga patokan Malaysia naik 30 persen di tahun 2021, karena hasil dari produsen utama, Indonesia dan Malaysia, menurun dan permintaan global pulih dari dampak pandemi. Harga global yang lebih tinggi melihat harga minyak goreng di Indonesia naik 40 persen pada awal tahun, mendorong pengenaan pembatasan ekspor pada akhir Januari untuk menjinakkan kenaikan ini. Hal itu memicu reli pada harga Malaysia, yang telah meningkat 50 persen tahun ini. “Kami ingin membagi harga antara pasar internasional dan lokal,” kata Menteri Perdagangan Muhammad Lutfi dalam sebuah pidato. “Kami harus memastikan produk Indonesia menhadi bagian dari tiang ekonomi global tetapi tidak berarti kami bisa didikte oleh dunia,” katanya. Bersamaan dengan pembatasan volume ekspor, Indonesia juga telah menetapkan batas harga untuk minyak kelapa sawit mentah (crude palm oil / CPO) dan olein yang dijual dalam negeri untuk mengendalikan biaya pemurniannya menjadi minyak goreng. Pemerintah juga membatasi harga eceran. Pembatasan baru datang ketikan analis industri pada konferensi di Kuala Lumpur, yang memperkirakan harga minyak nabati akan tetap mendekati rekor tertinggi dalam beberapa bulan mendatang, mendesak Indonesia untuk memangkas mandat bahan bakar hayati untuk memungkinkan lebih banyak ekspor dan mempertahankan harga. “Pemerintah harus mengurangi pencampuran wajib bahan bakar hayati...dari B30 menjadi B20 untuk satu tahun,” kata Dorab Mistry mengacu pada persentase kandungan bahan bakar berbasis kelapa sawit. Menurut data kementerian, Indonesia seharusnya sudah memiliki pasokan minyak kelapa sawit yang cukup untuk memenuhi permintaan minyak goreng lokal dengan batasan ekspor hanya 20 persen, kata Eddy Martono, sekretaris jenderal Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI). “Yang perlu diselesaikan terlebih dahulu adalah di mana minyak gorengnya hilang di sepangjang rantai distribusi,” kata Eddy. Konsumen mengeluh bahwa harga minyak goreng masih dijual di atas batas 14.000 Rupiah (US$0,9739) per liter di pasar tradisional, kata Ombudsman Indonesia. Sementara di supermarket, persediaan minyak goreng hampir habis meski pengecer menetapkan kuota dua liter per pembeli. Beberapa toko bahkan meminta pembeli mereka untuk mencelupkan jari ke dalam tinta, seperti yang diwajibkan selama pemilu, utnuk menandai bahwa mereka telah membeli sesuai kuota. Sahat Sinaga, wakil ketua Dewan Minyak Kelapa Sawit Indonesia, sebuah grup industri, memperingatkan Indonesia bahwa mereka mungkin tidak memiliki penyimpanan yang cukup untuk menyimpan pasokan tambahan, yang dapat merugikan petani. “Pembelian buah segar dari petani akan dihentikan,” kata Sahat, mengingat persediaan minyak kelapa sawit dapat mencapai 5 juta ton, tingkatan yang belum pernah ada sejak bulan November 2020.

Pekerja Menempatkan Buah Kelapa Sawit di Gudang Worker Placing Palm Oil Fruits in the storage

GLOBAL MARKET CAN’T DICTATE INDONESIA PALM OIL POLICY : MINISTER

AKARTA: Indonesia’s palm oil price should not be dictated by the external market, its trade minister said, backing his decision to expand palm oil export curbs at a time of surging global prices from a global supply crunch. The world’s top palm oil exporter shocked the market a day earlier by announcing that palm companies must sell 30 per cent of their planned exports at home, up from 20 per cent, which sent Malaysian benchmark prices soaring by 10 per cent. Malaysian benchmark prices climbed 30 per cent in 2021, as output from top producers Indonesia and Malaysia slowed and global demand recovered from the impacts of the pandemic. The higher global prices saw Indonesian cooking oil prices gain 40 per cent at the beginning of the year, prompting its imposition of export curbs in late January to try to tame the rise. That triggered another rally in Malaysian prices, which have gained around 50 per cent so far this year. “We want to split the prices between the international market and the local market,” Trade Minister Muhammad Lutfi said in a speech. “We have to make sure that Indonesian products become a part of global economic pillars but that doesn’t mean we can be dictated by the world,” he said. Along with the export volume restriction, Indonesia also set price caps for crude palm oil (CPO) and the olein sold at home to control the cost of refining them into cooking oil. The government also capped retail prices. The fresh curbs came as industry analysts at a conference in Kuala Lumpur, who expect edible oil prices to remain near record highs in coming months, urged Indonesia to cut its biodiesel mandate to allow more exports and contain prices. “The government must reduce the compulsory blending of biodiesel...from B30 to B20 for one year,” analyst Dorab Mistry said referring to the percentage content of palm-based fuel. According to ministry data, Indonesia should already have enough palm oil supply to meet local cooking oil demand with only a 20 per cent restriction on exports, said Eddy Martono, secretary general of the Indonesia Palm Oil Association (GAPKI). “What needs to be resolved first is where has the cooking oil gone missing throughout the distribution chain,” Eddy said. Consumers have complained that cooking oil is still being sold at prices above the 14,000 rupiah (US$0.9739) per litre cap in traditional markets, Indonesia’s Ombudsman said. Meanwhile at supermarkets, cooking oil stocks are running out even with retailers setting a two-litre quota per buyer. Some stores are even asking buyers to dip their fingers in ink, as is required during elections, to mark that they have purchased their quota. Sahat Sinaga, deputy chairperson of the Indonesia Palm Oil Board, an industry group, warned that Indonesia may not have enough storage to keep extra supplies, which could hurt farmers. “Purchase of fresh fruit from farmers would stop,” Sahat said, noting domestic stocks of palm oil could exceed 5 million tonnes, a level not seen since November 2020.

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Palm Oil Today Indonesia

April - June 2022

Perkebunan Kelapa Sawit di Indonesia Palm Oil Plantations in Indonesia

INDONESIA BERPALING MENGGANTI PEMBATASAN EKSPOR MINYAK KELAPA SAWIT DENGAN RETRIBUSI INDONESIA TAKES U-TURN TO REPLACE PALM OIL EXPORT CURBS WITH LEVY

AKARTA : Indonesia akan menghapus pembatasan ekspor produk minyak kelapa sawit dan meningkatkan retribusi ekspor, kata menteri perdagangannya seminggu setelah eksportir tersbesar minyak nabati di dunia itu mengejutkan pasar dengan semakin memperketat pembatasannya. Negara Asia Tenggara tersebut sejak pekan lalu mewajibkan perusahaan untuk menjual 30 persen dari rencana ekspor minyak kelapa sawit mentah atau olein mereka ke dalam negeri, dari 20 persen yang diberlakukan pada bulan Januari, di bawah apa yang disebut kewajiban pasar domestik (domestic market obligation / DMO) yang ditujukan untuk memastikan pasokan lokal di tengah melonjaknya harga minyak goreng. Dalam sidang parlemen, Menteri Perdagangan Muhammad Lutfi mengatakan bahwa DMO akan ditarik dan peraturan tersebut disepakati dan disetujui pada hari Kamis. Sebaliknya, pagu pajak dan retribusi akan ditingkatkan, katanya, dari gabungan maksimum US$375 per ton hingga US$675 per ton. Pajak CPO maksimum akan diterapkan ketika harga mencapai US$1,500 per ton. “Ini merupakan mekanisme pasar, dan mudah-mudahan ini bisa menjaga kestabilan pasokan bagi masyarakat,” kata Lutfi. Harga global minyak kelapa sawit mentah, yang Indonesia gunakan sebagai minyak goreng, telah melonjak ke harga tertinggi dalam sejarah tahun ini di tengah meningkatnya permintaan dan melemahnya hasil dari produsen utama, Indonesia dan Malaysia. Produsen minyak kelapa sawit utama, Indonesia pertama kelai membatasi ekspor setelah harga minyak goreng yang terbuat dari minyak kelapa sawit mentah olahan meningkat lebih dari 40 persen pada awal tahun di tengah lonjakan harga global. Meski kebijakan tersebut meningkatkan pasokan di dalam negeri, konsumen mengeluh bahwa minyak goreng tidak tersedia di banyak pengecer di seluruh negeri. Pemerintah pekan ini menghapus batasan harga minyak goreng kemasan sekaligus memberikan subsidi minyak goreng curah. Lutfi mengatakan bahwa ada disparitas harga antara DMO dan harga pasar yang dimanfaatkan. Dia tidak menjelaskan lebih lanjut. Dia juga mengatakan bahwa Indonesia telah mengeluarkan izin ekspor untuk 3,5 juta ton minyak kelapa sawit dan produk olahannya dalam 30 hari terakhir.

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AKARTA : Indonesia will remove export restrictions on palm oil products and raise its export levy instead, its trade minister said only a week after the world’s biggest exporter of the edible oil shocked markets by further tightening its curbs. The Southeast Asian country has since last week required companies to sell 30 per cent of their planned exports of crude palm oil or olein at home, up from 20 per cent imposed in January, under a so-called domestic market obligation (DMO) aimed at ensuring local supply amid soaring cooking oil prices. In a parliamentary hearing, Trade Minister Muhammad Lutfi said the DMO would be withdrawn and the regulations were agreed and approved on Thursday. Instead, the ceiling of palm export tax and levy would be raised, he said, from a combined maximum of US$375 per tonne to US$675 per tonne. The maximum CPO tax would be applied when prices reach US$1,500 per tonne. “This is the market mechanism, and hopefully this can maintain supply stability for the people,” Lutfi said. Global prices of crude palm oil, which Indonesia uses for cooking oil, have surged to historic highs this year amid rising demand and weak output from top producers Indonesia and Malaysia. Top palm oil producer Indonesia first restricted exports after prices of cooking oil - made from refined crude palm oil - rose more than 40 per cent at the start of the year amid a surge in global prices. Although the policy increased supply at home, consumers complained that cooking oil was not available at many retailers across the country. The government this week removed price caps on packaged cooking oil while providing subsidy for bulk cooking oil. Explaining the decision, Lutfi said there was a price disparity between the DMO and market price that was being exploited. He did not elaborate. He also told the hearing Indonesia had issued export permits for 3.5 million tonnes of palm oil and its refined products in the past 30 days.

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TENAGA KERJA ASING UNTUK PERKEBUNAN KELAPA SAWIT MALAYSIA DIDATANGKAN PADA BULAN MEI, JUNI

UALA LUMPUR :Malaysia mengharapkan angkatan tenaga kerja asing tiba pada bulan Mei dan Juni untuk perkebunan kelapa sawitnya, kata menteri industri perkebunan pada hari Selasa, penundaan berbulan-bulan dari rencana awal untuk menambah lebih banyak tenaga kerja awal tahun ini.

Perkebunan kelapa sawit Malaysia telah berjuang melawan kekurangan tenaga kerja yang memburuk sejak awal pandemi coronavirus karena pembatasan perbatasan telah menghalangi pekerja asing, memangkas angka yang tersedia untuk memanen dan memberikan pupuk pada buah sawit yang mudah rusak.

Kekurangan pekerja asing untuk memanen buah kelapa sawit di Malaysia, produsen terbesar kedua di dunia, kemungkinan akan membatasi produksi, menambah kekhawatiran global atas pasokan minyak nabati yang terkena dampak perang RusiaUkraina dan cuaca buruk di Amerika Selatan. “Dengan masuknya tenaga kerja asing, saya berharap produksi akan meningkat dari 18,1 juta ton (tahun lalu), menjadi 20 juta,” kata menteri Zuraida Kamaruddin dalam konferensi industri di Kuala Lumpur. Sekitar 80 persen pekerja perkebunan Malaysia merupakan pendatang, kebanyakan dari mereka berasal dari negara tetangga, Indonesia.

Pada bulan September, pihak berwenang menyetujui perekrutan 32.000 pekerja asing untuk perkebunan kelapa sawit, di mana tenaga kerja asal Indonesia diperkirakan akan tiba pada pertengahan bulan Februari. Tetapi analis skeptis para pekerja akan siap pada waktunya. “Bahkan jika mereka (tenaga kerja) datang, itu akan memakan waktu untuk pelatihan, karena Anda tidak selalu melihat pekerja terampil, Anda melihat orang yang tidak memiliki pengalaman pemanen,” kata Julian McGill, kepala Asia Tenggara LMC International kepada Reuters.

Patokan kontrak minyak kelapa sawit di Bursa Malaysia Derivatives Exchange turun 1,3 persen di angka 6.543 ringgit per ton pada pukul 05:41 GMT, dari level tertinggi sepanjang masa 7.108 ringgit ($1.700,89) minggu lalu.

Pasokan global minyak nabati akan terpukul dalam beberapa bulan ke depan karena cuaca kering mengurangi produksi kedelai di Brasil, pengekspor terbesar biji minyak di dunia, sementara invasi Rusia ke Ukraina telah menutup pelabuhan. Rusia dan Ukraina menyumbang 80 persen ekspor minyak bunga matahari di dunia, yang bersaign dengan kelapa sawit.

Pekerja menanam benih kelapa sawit di perkebunan kelapa sawit di Sungai Slim, Malaysia Workers plant oil palm seeds at an oil palm plantation in Slim River, Malaysia

FOREIGN WORKERS FOR MALAYSIA’S PALM PLANTATIONS TO ARRIVE IN MAY, JUNE

UALA LUMPUR :Malaysia expects a new batch of foreign workers to arrive in May and June for its palm plantations, the plantation industries minister said on Tuesday, a delay of months from an original plan to add more labour early this year. A shortage of foreign workers to harvest palm fruits in Malaysia, the world’s second largest producer, is likely to cap production, adding to global worries over vegetable oil supplies hit by the Russia-Ukraine war and bad weather in South America. “With foreign labour coming in, I hope production will increase from 18.1 million tonnes (last year) to 20 million,” the minister, Zuraida Kamaruddin, told an industry conference in Kuala Lumpur. About 80per cent of Malaysia’s plantation workers are migrants, most of them from neighbouring Indonesia. The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange was down 1.3per cent at 6,543 ringgit a tonne by 0541 GMT, off its all-time high of 7,108 ringgit ($1,700.89) hit last week.

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Malaysia’s palm planters have battled a worsening labour shortage since the start of the coronavirus pandemic as border curbs kept out migrant workers, slashing the numbers available to harvest and fertilise the perishable palm fruits. In September, authorities approved the recruitment of 32,000 migrant workers for palm plantations, with Indonesian migrant workers expected to arrive around mid-February. But analysts were sceptical that workers could be ready in time. “Even if they (workers) arrive, it will take time for training, as you’re not looking necessarily at skilled workers, you’re looking at people who don’t have any harvester experience,” Julian McGill, the Southeast Asia head at LMC International, told Reuters. Global supplies of edible oil stand to take a hit in coming months as dry weather reduces soybean production in Brazil, the world’s biggest exporter of the oilseed, while Russia’s invasion of Ukraine has shuttered ports. Russia and Ukraine account for 80per cent of global exports of sunflower oil, which competes with palm.

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April - June 2022

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Pekerja Kelapa Sawit di Malaysia Palm Oil Worker in Malaysia

PAJAK TAK TERDUGA ATAS MINYAK KELAPA SAWIT

MELEBIHI RM1 MILIAR PADA TAHUN 2022, KATA MENTERI MALAYSIA

UALA LUMPUR: Pemerintah diperkirakan akan mengumpulkan lebih dari RM1 miliar retribusi pajak tak terduga di tahun 2022 berdasarkan proyeksi harga minyaka kelapa sawit mentah di RM4.250 per ton dan tingkat produksi di 19 juta ton. Menteri industri perkebunan dan komoditas Zuraida Kamaruddin mengatakan bahwa industri minyak kelapa sawit diperkirakan akan menghasilkan keuntungan RM2 miliar lagi dari pajak ekspor tahun ini. “Perkembangan ini tepat waktu mengingat pemerintah telah menghabiskan miliaran Ringgit dalam waktu dua tahun terakhir untuk membantu warga Malaysia yang terkena dampat Covid-19 dan kemerosotan ekonomi. “Kementerian saya senang dapat membantu upaya pemerintah untuk mengisi kembali pundipundinya,” katanya dalam sebuah pernyataan hari ini. Zuraida yakin bahwa harga global komoditas yang menguntungkan dan pertumbuhan yang sehat di sektor tersebut akan membantu mempercepat Rencana Pemulihan Nasional. Pendapatan ekspor minyak kelapa sawit untuk tahun 2022 diperkirakan akan bertumbuh 11,8% menjadi RM72,25 miliar dari RM64,62 miliar di tahun 2021, sementara ekspor kayu dan produk kayu diproyeksikan akan meningkat 5,52% menjadi RM24 miliar dari RM22,74 miliar sebelumnya. “Pemilik perkebunan, dari konglomerat terdaftar hingga penati kecil, serta pelaku industri lainnya, semuanya diuntungkan dari peningkatan pendapat tersebut,” katanya.

Di sisi lain, kementerian akan meningkatkan upayanya untuk membantu pelaku industri menangkap peluang ekonomi ini, termasuk membuka lebih banyak pasar untuk komoditas kita. “Selama dua bukan terakhir, saya telah memimpin misi perdagangan keluar negeri untuk komoditas kami. Negara seperti Iran, Turki, India dan Tiongkok telah menyatakan minatnya untuk meningkatkan impor komoditas kita. “Beberapa negara telah meningkatkan pembelian produk-produk ini, sementara yang lain sedang menyelesaikan kesepakatan perdagangan,” katanya. Zuraida mengatakan bahwa Tiongkok diperkirakan akan mengimpor tambahan minyak kelapa sawit sebesar 500.000 ton dari Malaysia pada tahun 2022, sementara India akan menjadi destinasi pasar utama bagi minyak kelapa sawit Malaysia dengan tambahan impor sebanyak dua juta ton. “India diperkirakan akan menghadapi kelangkaan minyak nabati karena ketergantungannya pada minyak bunga matahari dari Ukraina dan perubahan kebijakan minuak kelapa sawit Indonesia. Minyak kelapa sawit Indonesia akan membantu mengisi kekosongan ini di India,” katanya. Zuraida mengatakan bahwa kementerian industri perkebunan dan komoditas juga akan membantu pelaku industrim terutama petani kecil, untuk membuat usaha mereka lebih berkelanjutan melalui upaya otomatisasi, peningkatkan adopsi teknologi dan pengurangan ketergantungan tenaga kerja asing.

Zuraida mengatakan bahwa kenaikan pendapatan pajak juga akan memungkinkan pemerintah untuk melaksanakan lebih banyak proyek sosial ekonomi, termasuk pembangunan sekolah, rumah sakit, dan jalan, serta memberikan bantuan keuangan kepada yang membutuhkan.

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April - June 2022

WINDFALL TAX ON PALM OIL

TO EXCEED RM1BIL IN 2022, SAYS MALAYSIAN MINISTER

UALA LUMPUR: The government is expected to collect more than RM1 billion in windfall profit tax levy in 2022 based on the projected average crude palm oil price of RM4,250 per tonne and the production level of 19 million tonnes. Plantation industries and commodities minister Zuraida Kamaruddin said the palm oil industry is also estimated to generate another RM2 billion in revenue from export tax this year. “This development is timely considering that the government has spent billions of ringgit over the past two years to help tide over Malaysians impacted by Covid-19 and the economic slump. “My ministry is glad that it can complement the government’s efforts to replenish its coffers,” she said in a statement today. Zuraida is confident that the favourable global prices of commodities and robust growth in the sector will help to expedite the National Recovery Plan. Palm oil export revenue for 2022 is expected to grow by 11.8% to RM72.25 billion from RM64.62 billion in 2021, while the export of timber and timber products is projected to increase by 5.52% to RM24 billion from RM22.74 billion previously. “Plantation owners, from listed conglomerates to smallholders, as well as other industry players all stand to gain from the increased revenue,” she said. Zuraida said the increase in tax revenue will also enable the government to carry out more socio-economic projects, including building schools, hospitals and roads, and delivering financial aid to the needy.

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On its part, the ministry will step up efforts to help industry players to seize this economic opportunity, including opening up more markets for commodities. “Over the past two months, I have led trade missions abroad to open up markets for our commodities. Countries like Iran, Turkey, India and China have expressed interest to beef up imports of our commodities. “Some countries have already increased their purchase of these products, while others are finalising trade deals,” she said. Zuraida said China is expected to import an additional 500,000 tonnes of palm oil from Malaysia in 2022, while India will be the top market destination for Malaysian palm oil with an additional import of two million tonnes. “India is expected to face edible oil shortages due to its reliance on sunflower oil from Ukraine and changes to Indonesia’s oil palm export policy. Malaysia’s palm oil will help fill this vacuum in India,” she said. Zuraida said the plantation industries and commodities ministry will also assist industry players, especially smallholders, to make their businesses more sustainable through efforts to automate their businesses, enhance the adoption of information technology and reduce foreign labour dependency.

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Menteri Industri Perkebunan dan Komoditas Datuk Zuraida Kamaruddin mengatakan bahwa konsumsi domestik minyak kelapa sawit Malaysia relatif lebih rendah dibandingkan Indonesia. Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin said Malaysia’s domestic consumption of palm oil is relatively lower than Indonesia’s.

MALAYSIA TIDAK MUNGKIN MENGHADAPI KEKURANGAN MINYAK GORENG MESKIPUN EKSPOR DITINGKATKAN

idak seperti Indonesia, Malaysia tidak akan bergulat dengan krisis pasokan minyak goreng dalam negeri, jika memutuskan untuk meningkatkan ekspor minyak kelapa sawit. Menteri Industri Perkebunan dan Komoditas Datuk Zuraida Kamaruddin mengatakan bahwa konsumsi domestik minyak kelapa sawit Malaysia relatif lebih rendah dibandingkan Indonesia. Indonesia meningkatkan retribusi ekspor maksimum untuk minyak kelapa sawit dari $175 per ton menjadi $375 per ton untuk memastikan pasokan minyak nabati untuk konsumsi lokal tetap tersedia. Perang Rusia-Ukraina telah memperparah kelangkaan minyak goreng di Indonesia, dan dua orang tewas di Kalimantan Timur minggu lalu karena kecapekan mengantri untuk membeli komoditas tersebut. Tetapi, Zuraida mempertimbangkan kenaikan retribusi ekspor Indonesia merupakan keuntungan bagi industri kelapa sawit Malaysia. “Sejak indonesia baru-baru ini menggandakan retribusi ekspor untuk memenuhi permintaan lokal, hal ini membuka peluang bagi kami untuk meningkatkan pangsa pasar global minyak kelapa sawit kami. “Kami sedang mempersiapkan kampanye agresif untuk mempromosikan minyak kelapa sawit, di dalam negeri maupun secara global. “Revisi standar Minyak Kelapa Sawit Berkelanjutan Malaysia (Malaysian Sustainable Palm Oil / MSPO) 2022 merupakan bukti bahwa kami siap untuk melawan tuduhan yang dilontarkan oleh kelompok anti-minyak kelapa sawit terhadap industri kami” katanya kepada wartawan, Le Meridien Putrajaya. Sebelumnya, Zuraida meluncurkan standar MSPO 2022 yang direvisi, bersamaan dengan Forum Minyak Kelapa Sawit Berkelanjutan Bersertifikaasi (Certified Sustainable Palm Oil / CSPO). MSPO merupakan skema nasional Malaysia bagi perkebunan kelapa sawit, petani swadaya dan terorganisir, dan fasilitas pemrosesan minyak kelapa sawit, disertifikasi berdasarkan sertifikasi MSPO. Seri standar MSPO pertama (MS 2530:2013) dikembangkan pada tahun 2013 oleh Standards Malaysia dan dipelopori oleh Dewan Minyak Kelapa Sawit Malaysia (Malaysian Palm Oil Board / MPOB). Itu dibuat wajib pada tahun 2020 dan direvisi tahun ini menjadi MS 2503:2022.

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Di antara perubahan besar di bawah MSPO 2022 termasuk larangan tegas terhadap konversi hutan alam, kawansan lindung, dan area bernilai konservasi tinggi (high conservation value / HCV), setelah Desember 2019. Dalam hal tenaga kerja, standar baru mewajibkan semua bentuk pekerjaan di industri minyak kelapa sawit bersifat sukarela. Pelaku industri juga tidak boleh mempekerjakan atau mengeksploitasi anak-anak. Kriteria baru juga mengharuskan pemberi kerja untuk menyediakan kondisi hidup yang layak bagi karyawan dan keluarganya juga telah dimasukkan. Zuraida mengatakan, MSPO 2022 juga mempertimbangkan komitmen global Malaysia, seperti masuknya kriteria untuk menghapus segala bentuk kerja paksa dan pekerja di bawah umur, sejalan dengan keputusan Malaysia untuk meratifikasi Protokol 29 dari Organisasi Tenaga Kerja Internasional (International Labour Organisation / ILO). “Sesuai dengan komitmen Malaysia (untuk mempertahankan setidaknya 50 persen dari tutupan hutan di Malaysia) di COP26, kami juga telah membatasi area lahan untuk budidaya kelapa sawit di 6,5 juta hektar. “Untuk saat ini, perkebunan kelapa sawit kami hanya mencakup 5,8 juta hektar lahan,” katanya. Malaysia, katanya, merupakan salah satu negara yang pertama menerapkan sertifikasi MSPO dan beberapa negara lain, termasuk Tiongkok, juga sedang mempertimbangkan untuk mengadopsi sertifikasi ini. “Di Malaysia, semua oriduk yang terbuat dari minyak kelapa sawit kami akan memiliki label sertifikasi MSPO. “Semenatra itu, secara global, kami berencana untuk memenuhi pembuat peraturan dari Amerika Serikat untuk memberi tahu mereka tentang pengembangan terbaru industri minyak kelapa sawit Malaysia. “Kami ingin menyampaikan perspektif kami dalam hal ini dan menjelaskan hal-hal dalam konteks lokal kami kepada mereka. “Pejabat kami juga akan berangkat ke Pakista dan Turki untuk menghidupkan kembali kehadiran pasar kami, meningkatkan pangsa pasar minyak kelapa sawit kami dan terus mengikuti perkembangan industri kami di sini,” katanya.

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April - June 2022

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MALAYSIA UNLIKELY TO FACE COOKING OIL SHORTAGE EVEN IF PALM OIL EXPORT IS RAMPED UP

nlike Indonesia, Malaysia will not grapple with a cooking oil supply crunch at home, if it decides to increase palm oil exports. Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin said this was because Malaysia’s domestic consumption of palm oil is relatively lower than Indonesia’s. Indonesia raised the maximum export levy for palm oil from $175 per tonne to $375 per tonne to ensure supply of the edible oil for local consumption. The Russia-Ukraine war has exacerbated the cooking oil shortage in Indonesia, and two people died in East Kalimantan last week due to fatigue while queueing up to purchase the commodity. However, Zuraida considered Indonesia’s export levy hike a boon for Malaysia’s palm oil industry. “Since Indonesia recently doubled its export levy to cater for local demand, this opens up an opportunity for us to boost our global market share of palm oil. “We are preparing an aggressive campaign to promote palm oil, both at home and globally. “The revised Malaysian Sustainable Palm Oil (MSPO) 2022 standards is proof that we are ready to counter-allegations levelled by anti-palm oil lobby groups against our palm oil industry,” she told reporters, at Le Meridien Putrajaya. Earlier, Zuraida launched the revised MSPO 2022 standards, in conjunction with the Certified Sustainable Palm Oil (CSPO) Forum. MSPO is the national scheme in Malaysia for oil palm plantations, independent and organised smallholdings, and palm oil processing facilities, to be certified on the requirements of the MSPO Standards. The first MSPO standard series (MS 2530:2013) was developed in 2013 by Standards Malaysia and was spearheaded by the Malaysian Palm Oil Board (MPOB). It was made mandatory in 2020 and was revised this year into MS 2503:2022.

Among the major changes under the MSPO 2022 include a strict prohibition on the conversion of natural forest, protected areas, and high conservation value (HCV) areas, after December 2019. In terms of labour, the new standard mandates for all forms of work in the palm oil industry to be voluntary. Industry players must also not employ or exploit children. A new criterion also requires employers to provide decent living conditions to employees and their families has also been included. Zuraida said, the MSPO 2022 also factored in Malaysia’s global commitments, such as the inclusion of criteria to eradicate all forms of forced labour and child labour, in line with Malaysia’s decision to ratify the International Labour Organisation (ILO) Protocol 29. “In keeping with Malaysia’s commitment (on retaining at least 50 per cent of Malaysia’s forest cover) at COP26, we have also capped the land area for palm oil cultivation at 6.5 million hectares. “For now, our palm oil plantations only cover 5.8 million hectares of land,” she said. Malaysia, she said, is among the first countries to develop an MSPO certification and several countries, including China, is mulling to adopt this certification. “Within Malaysia, all products that are made from our palm oil will carry an MSPO certified label. “Meanwhile, on the global front, we are planning to meet regulators from the United States soon to brief them about the latest developments of the Malaysian palm oil industry. “We want to convey our perspective on the matter and put things into our local context for them. “Our officials will also fly to Pakistan and Turkey to revive our market presence, boost our palm oil market share there and keep them abreast about our industry’s developments here,” she said.

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Palm Oil Today Indonesia

April - June 2022

TANZANIA: PEMERINTAH MENDORONG PENGGUNAAN TEKNOLOGI MODERN DALAM PRODUKSI MINYAK KELAPA SAWIT

emerintah berkolaborasi dengan mitra pengembangan telah mendorong agronomi pohon kelapa sawit modern, penggunaan teknologi berkualitas dan ramah untuk mendapatkan produk berkualitas. Wakil Sektretaris Tetap Kementerian Perindustrian, Perdagangan dan Investasi, Dr Hashil Abdallah mengatakan bahwa akses bahan baku akan memungkinkan produksi yang produktif dan berkelanjutan untuk mengurangi impor minyak nabati. Dr Abdallah berbicara pada pembukaan lokakarya kewirausahaan rantai minyak kelapa sawit di Kigoma pada hari Senin untuk upaya lebih lanjut untuk meningkatkan produksi dan konsumsi produk minyak kelapa sawit di wilaya Kigoma serta Tanzania secara keseluruhan. Dia mengatakan bahwa pemerintah telah menciptakan lingkungan yang kondusif bagi terciptanya industri berskala besar, menengah dan kecil untuk meningkatkan lapangan kerja dan produktivitas bagi produsen dan produk-produk pohon sawit berkualitas seperti minyak kelapa sawit, deterjen dan kosmetik serta digunakan juga untuk membuat sabun, sapu, karpet dan arang alternatif yang berasal dari pohon dan daun sawit. Direktur Insinyur dari Organisasi Pengembangan Industri Kecil (Small Industries Development Organization / SIDO), Professor Sylvester Mpanduji saat menandatangani kontrak utnuk pembangunan dua pabrik kecil mengatakan bahwa SIDO siap untuk menerapkan proyek konstruksi penyulingan minyak kelapa sawit di desa Sinuka, distrik Uvinza dan desa Nyamuhoza di distrik Pedesaan Kigoma serta memberikan pelatihan dan pinjaman finansial kepada para pengusaha tersebut.

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Di pihaknya, Koordinator dan Manajer Proyek Kerangka Kerja Terintegrasi yang Ditingkatkan (Enhanced Integrated Framework / EIF) I & II dari Kementerian Perindustrian, Perdagangan dan Investasi, Nona Ritha Magere mengatakan bahwa kementerian berkolaborasi denganmitra pengembangan Organisasi Perdagangan Dunia (World Trade Organization / WTO), EIF, sedang mengimplementasikan proyek bernilai tambah pada hasil panen kelapa sawit dengan meningkatkan produktivitas dan kualitas pemrosesan, menguatkan daya saing pengusaha kecil dan menengah di pasar lokal, regional dan internasional serta mengurangi kemisminan dengan mempekerjakan sekitar 500 wanita dan pemuda-pemudi. Nona Magere mengatakan bahwa proyek tersebut terebut telah diimplementasikan dari tahun 2020 hingga 2023 di daratan Tanzania dan Kepulauan, terutama dalam rantai nilai tanaman kelapa sawit untuk wilayah Kigoma, madu di wilayah Singida, sayuran dan buah-buahan di zona danau Mara serta wilayah Simiyu, dan juga hasil laut di wilayah Unguja dan Mwani Pemba. Selain itu, Nona Magere mengatakan bahwa di Wilayah Kigoma, proyeknya akan mambangun berbagai infrastruktur di rantai nilai terpilih seperti membangun pabrik kecil untuk memroses produk-produk tersebut, memungkinkan masukan bagi petani untuk mencapai pertanian mereka, meningkatkan kualitas laboratorium untuk produk dan standar, serta peralatan untuk digunakan di laboratorium ini.

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April - June 2022

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TANZANIA: GOVT ENCOURAGES USE OF MODERN TECH IN PALM OIL PRODUCTION

he government in collaboration with development partners has been encouraging the agronomy of modern palm trees, the use of quality and friendly processing technologies to obtain quality products. The Deputy Permanent Secretary of the Ministry of Industry, Trade and Investment (Investment), Dr Hashil Abdallah said accessing raw materials will enable productive, sustainable production to reduce imports of edible oil. Dr Abdallah was speaking at the opening of a palm oil chain entrepreneurship workshop in Kigoma on Monday to further efforts to increase the production and consumption of palm oil products in the Kigoma Region and Tanzania as a whole. He said the government has created a conducive environment for the creation of large, medium and small scale industries to increase employment and productivity for producers and quality products palm trees products such as palm oil, detergents and cosmetics and also is used to make soap, broom, carpet and alternative charcoal derived from tree and palm leaves. The Small Industries Development Organization (SIDO), Director Engineer Professor Sylvester Mpanduji while signing the contract for construction of the two small plants said SIDO is ready to implement the project in the construction of the palm oil

refinery in Uvinza district Sinuka village and Nyamuhoza village in Kigoma Rural District as well as provide training and financial loans to those entrepreneurs. On her part, the Enhanced Integrated Framework (EIF) I & II Coordinator and Project Manager from the Ministry of Industry, Trade and Investment, Ms Ritha Magere said the ministry in collaboration with the World Trade Organization (WTO) development partners EIF, is implementing the added value project in the palm crop by increasing productivity and quality processing, strengthening the competitiveness of small and medium enterprises in local, regional and international markets as well as reducing poverty by employing approximately 500 women and youth. Ms Magere said the project has been implemented from 2020 to 2023 in mainland Tanzania and the Islands especially in the value chain in palm crops for the Kigoma region, Honey for Singida region, vegetables and fruit lake zone in Mara and Simiyu regions as well as seafood in Unguja and Mwani Pemba Region. In addition, Ms Magere said in the Kigoma Region the project will build various infrastructures in selected value chains such as building small factories to process those products, enable inputs for farmers to achieve their farming, improve quality laboratories for products and standards as well as equipment to be used in these laboratories.

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April - June 2022

INDIA MENDAPATKAN BANTUAN DARI MALAYSIA UNTUK MENINGKATKAN JEJAK PERKEBUNAN KELAPA SAWITNYA

engan India yang ingin memperluas jejak perkebunan kelapa sawitnya untuk mengurangi ketergantungannya terhadap impor mimyak nabati, negara tersebut mengandeng Malaysia untuk mendapatkan dukungan ke arah tersebut. Malaysia, produsen minyak kelapa sawit terbesar kedua di dunia setelah Indonesia, siap untuk berbagi pengalaman dan pengetahuan teknisnya dengan India.

INDIA TO GET TECHNICAL HELP FROM MALAYSIA TO INCREASE ITS PALM OIL PLANTATION FOOTPRINTS

Kedua negara menyepakati rincian dasar kerja sama di bidang ini beserta bidang-bidang untuk kepentinan bersama di sektor pertanian ketika pertemuan kunjungan Menteri Malaysia Zuraida Kamaruddin dengan Menteri Pertanian Narendra Singh Tomar at Krishi Bhawan.

Sebuah perkebunan kelapa sawit A palm oil plantation

ith India looking to expand footprints of palm oil plantations to reduce its dependence on import of oilseeds, the country joined hands with Malaysia in getting the latter’s support in this direction. Malaysia, the world’s second largest producer of palm oil after Indonesia, readily agreed to share its experience and technical know-how with India.

“India ingin mendapatkan manfaat dari pengalaman luas Malaysia. Langkah ini akan membantu negara tersebut dalam Misi Nasional Minyak Makan Sawit (National Mission on Edible OilsOil Palm / NMEO-OP) yang bertujuan untuk menambah 6,50 lakh hektar lahan kelapa sawit pada tahun 2025-26. India akan membutuhkan 100 juta benih untuk tujuan ini,” kata Tomar setelah pertemuan. Untuk mengurangi ketergantungan negara pada impor minyak nabati, pemerintah pusat pada bulan Agustus lalu telah meluncurkan NMEO-OP untuk meningkatkan ketersediaan minyak makan dengan memanfaatkan perluasan wilayah bahkan ketika para pemerhati lingkungan mengkritik keras bahwa langkah itu terbutki merusak ekologi. Dalam anggaran 2022-23 nya, pemerintah telah mengalokasikan Rs 900 crore untuk mempromosikam kelapa sawit.

Both the countries agreed on basic details of cooperation in this field along with other areas of mutual interests in the farm sector during the meeting of visiting Malaysian minister Zuraida Kamaruddin with agriculture minister Narendra Singh Tomar at Krishi Bhawan. “India wants to get benefitted from the vast experience of Malaysia. The move will help the country in its National Mission on Edible Oils-Oil Palm (NMEO-OP) which aims to bring additional 6.50 lakh hectares of land under palm oil by 2025-26. India would need 100 million seed sprouts for this purpose,” said Tomar after the meeting. In order to reduce the country’s dependence on import of oilseeds, the central government had in August last year launched NMEO-OP to augment the availability of edible oil by harnessing area expansion even as environmentalists severely criticized it saying the move would prove to be ecologically destructive. The government in its 2022-23 budget allocated Rs 900 crore for promoting palm oil.

Saat ini hanya 3,70 lakh hektar (ha) lahan di India yang ditanami kelapa sawit. Kelapa sawit memproduksi 10 hingga 46 kali lebih banyak minyak per hektar dibandingkan tanaman biji minyak lainnya. Karena India harus sangat bergantung pada impor, NMEO-OP bertujuan untuk mencakup area tambahan sebesar 11,20 lakh ton pada tahun 2025-26 dan meningkat menjadi 28 lakh ton pada tahun 2029-30.

At present only 3.70 lakh hectares (ha) of land in India is under oil palm cultivation. Oil palm produces 10 to 46 times more oil per hectare compared to other oilseed crops. Since India has to substantially depend on imports, the NMEO-OP aims to cover an additional area of 6.5 lakh hectares for oil palm till 2025-26. The scheme also targets the production of crude palm oil to go up to 11.20 lakh tons by 2025-26 and up to 28 lakh tons by 2029-30.

Menurut penilaian yang dibuat oleh Institut Penelitian Minyak Kelapa Sawit India (Indian institute of Oil Palm Research / IIOPR) ICAR, India memiliki 28 lakh hektar lahan yang cocok untuk budidaya kelapa sawit. Hampir sepertiga (9 lakh hektar) lahan tersebut berada di timur laut India.

According to an assessment made by the ICAR’s Indian institute of Oil Palm Research (IIOPR), India has 28 lakh hectares of land that can be suitable for palm oil cultivation. Nearly one-third (9 lakh hectares) of such land is available in north-east India.

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ZURAIDA MENGECAM AS ATAS LARANGAN MINYAK KELAPA SAWIT SDP ZURAIDA SLAMS US OVER SDP PALM OIL BAN

Pekerja di pabrik minyak kelapa sawit Workers at a palm oil mill

enteri Industri dan Komoditas Perkebunan Datuk Zuraida Kamaruddin telah mencela Bea Cukai dan Perlindung Perbatasan (Customs and Border Protection / CPB) AS atas “aksi tergesa-gesa dan tidak beralasan”-nya terhadap Sime Darby Plantation Bhd (SDP). “Saya sangat ingin menegaskan kembali bahwa industri minyak kelapa sawit Malaysia beroperasi di bawah standar yang ketat sejalan dengan Tujuan Pengembangan Berkelanjutan (Sustainable Development Goals / SDGs) Perserikatan Bangsa-Bangsa. “Kementerian tersebut juga bekerja sama dengan Kementerian Sumber Daya Manusia dan Kementerian Lingkungan Hidup dan Air untuk memastikan industri kelapa sawit dalam negeri mematuhi hukum dan praktik domestik dan internasional,” katanya dalam sebuah pernyataan kemarin. CBP telah mengeluarkan Perintah Pelepasan Tertangguh (Withhold Release Order / WRO) atas minyak kelapa sawit, termasuk semua minyak kelapa sawit mentah dan minyak biji sawit serta produk turunannya, yang seluruhnya atau sebagiannya terbuat dari minyak kelapa sawit yang dapat dilacak ke SDP pada 16 Desember 2020. Pihak berwenang AS diduga telah menetapkan bahwa ada bukti yang masuk akal yang menunjukkan bahwa SDP telah memanen buah dan memproduksi minyak kelapa sawit menggunakan tenaga kerja paksa. Di bawah WRO, produk masih bisa mendarat di Amerika Serikat, tetapi tidak dapat diperdagangkan maupun diproses. Zuraida mengatakan bahwa kementerian dia akan mencari klarifikasi lebih lanjut tentang masalah ini dari badan-badan AS yang relevan sehingga solusi segera dapat dicapai. “Untuk tujuan ini, kementerian akan bekerja sama dengan Wisma Putra dan Kementerian Perdagangan Internasional dan Industri. “Selain itu, kementerian juga akan memperluas kerja sama penuh ke lembagalembaga di Amerika Serikat dan negara-negara lain sehingga minyak kelapa sawit mereka dapat segera diperdagangkan secara bebas di pasar global,” katanya, dilansir Bernama. Dia menambahkan bahwa kementeriannya akan terus bekerja keras untuk memastikan kepentingan jangka panjang industri minyak kelapa sawit terlindungi dan selanjutnya membantu jutaan petani kelapa sawit dan pemangku kepentingan lainnya. “Saya juga menyerukan kepada seluruh warga Malaysia untuk bekerja sama dengan kementerian dalam upaya mengatasi propaganda anti-kelapa sawit yang jelas ditujukan untuk menjatuhkan industri minyak kelapa sawit negara kita,” katanya.

lantation Industries and Commodities Minister Datuk Zuraida Kamaruddin has chided US Customs and Border Protection (CPB) for its “hasty and unwarranted action” against Sime Darby Plantation Bhd (SDP). “I strongly wish to reiterate that the Malaysian palm oil industry operates under strict standards in line with the Sustainable Development Goals (SDGs) of the United Nations. “The ministry is also working closely with the Human Resource Ministry and the Environment and Water Ministry to ensure that the country’s oil palm industry complies with domestic and international laws and practices,” she said in a statement yesterday. The CBP had issued a Withhold Release Order (WRO) on palm oil, including all crude palm oil and palm kernel oil and derivative products, made wholly or in part with palm oil traceable to SDP on Dec 16, 2020. The US authorities had allegedly established that there was reasonable evidence to demonstrate SDP harvested the fruits and produced the palm oil using forced labor. Under the WRO, products can still land in the United States but cannot be traded or processed. Zuraida said her ministry would seek further clarification on the issue from the relevant US agencies so that an immediate solution could be reached. “For this purpose, the ministry will work closely with Wisma Putra and the International Trade and Industry Ministry. “Besides that, the ministry will also extend full cooperation to agencies in the United States and other countries so that the country’s palm oil can be traded freely globally,” she said, reported Bernama. She added that her ministry would continue to work hard to ensure the long-term interests of the palm oil industry were safeguarded and further assist millions of oil palm smallholders and other stakeholders. “I also call on all Malaysians to work together with the ministry in efforts to address the anti-palm oil propaganda by Western countries which is clearly aimed at bringing down our country’s palm oil industry,” she said. Human Resource Minister Datuk Seri M. Saravanan on Sunday told companies that were subject to export restrictions to improve their internal working practices or face tough action. He had also instructed the Manpower Department to carry out an immediate investigation. “I am committed to addressing this issue immediately to ensure Malaysia is no longer associated with forced labor practices,” he had said.

Menteri Sumber Daya Manusia, Datuk Seri M. Saravanan mengatakan pada hari Minggu bahwa perusahaan yang dikenai pembatasan ekspor untuk memperbaiki praktik kerja internal mereka atau menghadapi tindakan keras. Dia juga menginstruksikan kepada Dinas Ketenagakerjaan untuk segera melakukan penyelidikan. “Saya berkomitmen untuk mengatasi masalah ini segera untuk memastikan Malaysia tidak lagi terkait dengan praktik kerja paksa,” katanya.

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April - June 2022

Dewan Negara Penghasil Minyak Kelapa Sawit (Council of Palm Oil Producing Countries / CPOPC) The Council of Palm Oil Producing Countries (CPOPC)

GFP-SPO MENJADI BAHASA UMUM DI SELURUH SKEMA SERTIFIKASI MINYAK KELAPA SAWIT - CPOPC GFP-SPO TO BE COMMON LANGUAGE ACROSS PALM OIL CERTIFICATION SCHEMES — CPOPC

Dewan Negara Penghasil Minyak Kelapa Sawit (Council of Palm Oil Producing Countries / CPOPC) telah mengembangkan Kerangka Kerja Prinsip Global Minyak Kelapa Sawit Berkelanjutan (Global Framework of Principles of Sustainable Palm Oil / GFP-SPO) yang bertujuan untuk menjadi bahasa umum di berbagai skema sertifikasi yang diterpkan pada produksi minyak kelapa sawit yang berpusat pada Tujuan Pengembangan Berkelanjutan Perserikatan Bangsa-Bangsa (United Nations Sustainable Development Goals / UN SDGs) sebagai dasarnya. Dewan mengatakan bahwa kerangka kerja juga dapat digunakan untuk menilai kontribusi minyak kelapa sawit terhadap pencapaian pembangunan berkelanjutan di seluruh negera produsen dan akan meletakkan dasar bagi pembentukan platform minyak nabati berkelanjutan. “GFP-SPO resmi diluncurkan hari ini pada webinar yang bertajuk ‘Global Framework for Sustainable Palm Oil’ yang dihadiri oleh perwakilan negara-negara anggota CPOPC dan negara pengamat serta pemangku kepentingan terkait lainnya dalam skema minyak kelapa sawit berkelanjutan,” katanya dalam sebuah pernyataan pada tanggal 15 Februari. CPOPC mengatkan bahwa dokumen penting itu diadopsi dan disetujui oleh menteri-menteri negara anggota dalam pertemuan tingkat kesembulan pada tanggal 4 Desember 2021. Direktur eksekutif Tan Sri Dr Yusof Basiron mengatkan bahwa GFP akan digunakan sebagai referensi karena prinsip-prinsipnya berasal dan dikembangkan dari skema sertifikasi minyak kelapa sawit berkelanjutan yang ada saat ini, Indonesian Sustainable Palm Oil dan Malaysian Sustainable Palm Oil, serta memberikan panduan untuk masa depan. Sementara itu, sekretaris jendral Kementerian Industri Perkebunan dan Komoditas Datuk Ravi Muthayah menyatakan bahwa kerangka kerja tersebut penting untuk memastikan minyak kelapa sawit mampu memenuhi permintaan global dengan cara yang berkelanjutan dan produktif dengan berpegang pada prinsip-prinsip SDG. “Prinsip-prinsip tersebut bersifat global dan dapat diterapkan secara universal, dengan mempertimbangkan realitas nasional dan tingkat pembangunan yang berbeda,” katanya. Manajer senior departemen sistem pengembangan Malaysian Palm Oil Certification Council Simon Selvaraj mencatat bahwa kerangka kerja akan meningkatkan standar dalam persyaratan berkelanjutan dan mampu mengukur SDG PBB secara holistik. ”GFP-SPO akan memainkan peranan yang lebih luas dalam mengatasi masalah berkalnjutan dengan penerapan dini, yang secara signifikan membantu setiap orang di dalam rantai pasokan,” tambahnya.

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he Council of Palm Oil Producing Countries (CPOPC) has developed a Global Framework of Principles of Sustainable Palm Oil (GFP-SPO) that aims to be a common language across different certification schemes applied to palm oil production anchored in the United Nations Sustainable Development Goals (UN SDGs) as its base. The council said the framework could also be used to value the contribution of palm oil towards achieving sustainable development in all producing countries and shall lay the foundation for the establishment of a sustainable vegetable oil platform. “The GFP-SPO was officially launched today on the webinar titled ‘Global Framework for Sustainable Palm Oil’ attended by representatives of CPOPC member and observer countries as well as other related stakeholders in palm oil sustainability schemes,” it said in a statement on February 15. The CPOPC said the important document was adopted and approved by ministers of member countries in the ninth ministerial meeting on Dec 4, 2021. Executive director Tan Sri Dr Yusof Basiron said the GFP would be used as a reference because its principles draw and expand upon current sustainable palm oil certification schemes, such as the Indonesian Sustainable Palm Oil and Malaysian Sustainable Palm Oil, as well as provide guidance to future ones. Meanwhile, Malaysia’s Ministry of Plantation Industries and Commodities secretary-general Datuk Ravi Muthayah stated that the framework is important to ensure palm oil is able to meet global demand in a sustainable and productive way by adhering to the SDG principles. “The principles are global in nature and universally applicable, taking into account different national realities and levels of development,” he said. Malaysian Palm Oil Certification Council senior manager of system management department Simon Selvaraj noted that the framework would elevate the bar in sustainability requirements as it is able to holistically measure the UN SDGs. ”The GFP-SPO shall play a wider role in addressing sustainability issues with early adoption, which would significantly help everyone in the supply chain,” he added.

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ALTERNATIF BEBAS DEFORESTASI DAN KARBON NEGATIF UNTUK MINYAK KELAPA SAWIT

Ilmuwan telah mempelajari konversi sabana menjadi perkebunan kelapa sawit Scientists have studied the conversion of savannas into oil palm plantations

ebuah tim ilmuwan dari EPFL dan lembaga penelitian WSL asal Swiss telah mempelajari konversi dari sabana menjadi perkebunan kelapa sawit sebagai cara bebas deforestasi untuk menumbuhkan perkebunan ini. Terlebih lagi, jika praktik pengelolaan yang lebih baik diadopsi pada skala perkebunan, maka keseimbangan karbon dapat ditingkatkan dan temuan yang lebih besar dapat didapatkan untuk mengurangi dampak lingkungan dari minyak kelapa sawit. Permintaan untuk minyak kelapa sawit sebuah bahan mentah murah yang digunakan secara luas di seluruh dunia sangat besar dan terus meningkat. Tanaman ini merupakan mata pencaharian bagi banyak petani kecil di daerah tropis. Namun penelitian menemukan bahwa kini kelapa sawit memainkan peran utama dalam deforestasi, berdampak pada keragaman hayati, menciptakan ketegangan sosial dan meninggalkan jejak karbon yang berat. Untuk mengkaji alternatifnya, Juan Carlos Quezada, ketika ia masih merupakan murid kedoktoran di Laboratorium Sistem Ekologi (Ecological Systems / ECOS) EPFL, bersama dengan ilmuwan di Institut Federal Swiss untuk Penelitian Hutan, Salju dan Lanskap (WSL), melakukan studi mendalam sebagai bagian dari proyek Lanskap Adaptif Kelapa Sawit yang didanai oleh Fondasi Sains Nasional Swiss (Swiss National Science Foundation) dan dipimpin oleh ETH Zurich. Tim penelitian secara khusus melihat konversi lahan dan sabana yang terdegradasi, yang lazim di Amerika Selatan, menjadi lahan perkebunan kelapa sawit.

JEJAK KARBON YANG LEBIH KECIL

Kolombia merupakan produsen minyak kelapa sawit terbesar keempat di dunia. Di sana, sebagian besar ekspansi perkebunan kelapa sawit terjadi di kawasan sabana. Wilayah tersebut secara alami memiliki sedikit pohon, sehingga konversinya tidak membutuhkan deforestasi yang ekstensif maupun menghasilkan emisi CO2 yang besar. “Merubah hutan tropis menjadi perkebunan kelapa sawit memiliki jejak karbon yang besar,” kata Alexandre Buttler, seorang Guru Besar Emeritus dari EPFL yang menjabat sebagai ketua ECOS hingga pensiun pada tahun 2019. “Ini menghasilkan sekitar 170 ton lebih banyak emisi karbon per hektar dibandingkan proses bebas deforestasi yang kami pelajari di sini.” Namun, ketika sabana yang terdegradasi dirubah menjadi perkebunan kelapa sawit, hasil akhirnya bisa menjadi negatif karbon. Tim penelitian menukan bahwa bentuk konversi lahan ini meningkatkan jumlah karbon tersimpan dalam ekosistem ratarata 40 ton per hektar selama siklus budidaya penuh sekitar 30 tahun. Hal ini dikarenakan menanam kelapa sawit di lahan yang sebelumnya belum memiliki biomassa (misalkan bahan organik) baik di atas tanah, melalui akar dan daun, serta di bawah tanah, melalui akar. Biomassa ini kemudian menjadi cadangan karbon. Pada saat bersamaan, kehilangan karbon tanah dibatasi.

MENINGKATKAN POTENSI CADANGAN KARBON DI TANAH

Tim peneliti juga menilai bagaimana metode yang digunakan untuk membudidayakan kelapa sawit berdampak pada tingkat karbon di tanah. Tanah memainkan peranan penting dalam siklus karbon global karena ia merupakan tempat penyimpanan karbon terbesar. Selain melawan pemanasan global dengan menyimpan karbon, penyerapan CO2 dari udara dan translokasi ke tanah membuat kesuburannya lebih berkelanjutan. Ilmuwan menemukan bahwa menggunakan metode budidata yang tepat dapat meningkatkan kemampuan penyetoran karbon di tanah. Perkebunan kelapa sawit biasanya dibagi menjadi empat area dua di antaranya lingkaran gulma, yang merupakan permukaan kosong di sekitar batang kelapa sawit di mana sebagian besar pupuk diaplikasikan pada tahap awal penanaman, dan tumpukan pelapah, yang merupakan tumpukan sampah organik memiliki cadangan karbon yang sangat tinggi. Mengelola empat area dengan efektif dapat meningkatkan kesuburan lahan secara keseluruhan dan keragaman hayati untuk jangka panjang.

PRORITASNYA MASIH MELINDUNGI KERAGAMAN HAYATI Penemuan ilmuwan, yang tertera di Global Change Biology, menunjukkan bahwa mengubah sabana menjadi perkebunan kelapa sawit tidak hanya dapat mencegah deforestasi, tetapi juga menghasilkan keseimbangan negatif karbon bersih serta mempertahankan kesuburan tanah jangka panjang dengan meningkatkan jumlah cadangan karbon tanah melalui pengelolaan yang lebih baik. Tetapi, peneliti juga menunjukkan bahwa sabana merupakan ekosistem unik yang merupakan rumah bagi keragaman hayatu dan harus diberikan prioritas untuk mempertahankan mereka. “Ekspansi perkebunan kelapa sawit harus dilakukan di lahan yang sebelumnya diubah di daerah sabana, seperti padang rumput terdegradasi yang melimpah di Neotropis, atau di sabana yang terdegradasi, ketika restorasi tidak dapat dilakukan,” kata Buttler.

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April - June 2022

DEFORESTATION-FREE AND CARBON-NEGATIVE ALTERNATIVES FOR PALM OIL

team of scientists from EPFL and Switzerland’s WSL research institute has studied the conversion of savannas into oil palm plantations as a deforestation-free way of growing these plantations. What’s more, if improved management practices are adopted at the plantation scale, then the net carbon balance could be enhanced and a great leap could be made towards reducing the environmental impact of palm oil. Demand for palm oil a cheap raw material used widely around the world is huge, and growing. This crop serves as a livelihood for many small farmers in the tropics. But studies have shown that the way oil palm is currently cultivated plays a major role in deforestation, impacting biodiversity, creating social tensions and leaving a heavy carbon footprint. To examine alternatives, Juan Carlos Quezada, when he was a Ph.D. student at EPFL’s Laboratory of Ecological Systems (ECOS), along with scientists at the Swiss Federal Institute for Forest, Snow and Landscape Research (WSL), conducted an in-depth study as part of the Oil Palm Adaptive Landscapes project funded by the Swiss National Science Foundation and headed by ETH Zurich. The research team looked specifically at the conversion of former croplands and degraded savannas, which are prevalent in South America, into oil palm plantations.

INCREASING THE POTENTIAL FOR SOIL CARBON STORAGE

The research team also measured how methods used to cultivate oil palms affect soil carbon levels. Soil plays an essential role in the global carbon cycle since it’s the biggest single store of carbon. In addition to countering global warming by storing carbon, CO2 absorption from the air and translocation to the soil makes its fertility more sustainable The scientists found that using the right cultivation methods can improve soil’s capacity for carbon storage. Oil palm plantations are generally divided into four areas; two of them weeded circles, which are bare surfaces around oil palm trunks where most of the fertilizer is applied in the early stages of plantation, and frond piles, which are stacks of organic waste have particularly high soil carbon stocks. Managing the four areas more effectively can increase overall soil fertility and biodiversity over the long term.

A SMALLER CARBON FOOTPRINT

Colombia is the world’s fourth-largest producer of palm oil. There, a large share of the expansion in oil palm plantations has occurred in savanna regions. These regions naturally harbor few trees, so their conversion does not require extensive deforestation or generate large-scale CO2 emissions. “Turning tropical forests into oil palm plantations has a massive carbon footprint,” says Alexandre Buttler, an EPFL Emeritus Professor who served as head of ECOS until he retired in 2019. “It produces around 170 tons more carbon emissions per hectare than deforestation-free processes like the one we studied here.” However, when degraded savannas are turned into oil palm plantations, the net result can be carbon-negative. The research team found that this form of land conversion increases the amount of carbon stored in the ecosystem by an average of 40 tons per hectare over a full cultivation cycle of around 30 years. That’s because planting oil palm trees on land that previously had no trees adds biomass (i.e., organic matter) both aboveground, through the trunks and leaves, and belowground, through the roots. This biomass then becomes a carbon sink. At the same time, soil carbon loss is limited.

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THE PRIORITY IS STILL PROTECTING BIODIVERSITY

The scientists’ findings, which appear in Global Change Biology, indicate that converting degraded savannas into oil palm plantations can not only prevent deforestation, but also produce a net negative carbon balance and maintain long-term soil fertility by increasing the amount of soil carbon storage through improved management. However, the scientists also point out that savannas are unique ecosystems that house considerable biodiversity and that priority should be given to conserving them. “Oil palm expansion should take place on previously transformed lands in savanna regions, such as the degraded pastures which are abundant in the Neotropics, or on degraded savannas, when their restoration is not viable,” says Buttler.

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April - June 2022

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BURSA MALAYSIA DERIVATIVES MENYELESAIKAN PENGIRIMAN FISIK PERTAMA MINYAK KELAPA SAWIT MENTAH BERJANGKA DARI MALAYSIA TIMUR DI SABAH

ursa Malaysia Derivatives Bhd telah menyelesaikan pengiriman fisik pertama dari Kontrak Berjangka Minyak Kelapa Sawit Mentah Malaysia Timur (Fepo) di Sabah pada 17 Februari 2022. Pengiriman menghasilkan total delapan kontrak, yang mewakili 200 ton minyak kelapa sawit mentah (CPO) yang ditransaksikan antara penjual, Green Edible Oil Sdn Bhd, dan pembeli, Kunak Refinery Sdn Bhd di salah satu Instalasi Tangki Pelabuhan yang disetujui di Malaysia Timur, yaitu di Sandakan, Sabah. Instalasi Tangki Pelabuhan dioperasikan oleh Sawit Bulkers Sdn Bhd, anak perusahaan yang dimiliki sepenuhnya oleh Sawit Kinabalu Group, yang merupakan cabang investasi utama pemerintah negara bagian Sabah dalam industri kelapa sawit. “Penyelesaian pengiriman fisik pertama untuk kontrak Fepo yang berhasil dan tertib menunjukkan permintaan dari produsen Sabah untuk menjual CPO mereka melalui platform alternatif dengan transparansi harga yang lebih jelas,” kata pejabat eksekutif Bursa Malaysia Derivatives Samuel Ho Hock Guan dalam sebuah pertanyaan. Dia mengatakan bahwa kontrak Fepo menguntungkan penyuling dan pembeli Sabah dengan memungkinkan mereka mendapatkan CPO dengan harga yang kompetitif.

Sementara itu, direktur utama Sawit Kinabalu Group Datuk Bacho Jansie mengatakan ketersediaan kontrak Fepo Bursa Malaysia Derivatives menyediakan peserta pasar Malaysia Timur kesempatan berdagang tambahan serta mekanisme penemuan harga yang lebih baik dan lebih banyak opsi pengiriman fisik di Sabah dan Sarawak. “Sebagai salah satu pelabuhan pengiriman yang ditunjuk di Sabah, kami berharap dapat menarik lebih banyak pelaku pasar untuk menyewakan tangki kami yang tersedia dan lebih meningkatkan visibilitas pasar minyak kelapa sawit Malaysia Timur,” katanya, Kontrak Fepo, yang mulai berlaku 4 Oktober 2021 memberikan pelaku pasar CPO Malaysia Timur untuk terlibat dalam pengiriman fisik dan melindungi posisi mereka di pasar fisik CPO. Ini juga memperkuat penawaran Kompleks Sawit Bursa Malaysia Derivatives dan menyediakan transparansi harga di pasar CPO Malaysia Timur, semakin memperkuat posisi Malaysia sebagai pusat global untuk penemuan harga. Sejak diluncurkan hingga 8 Februari 2022, Bursa Malaysia Derivatives mencatat total volume perdagangan sebesar 3.250 kontrak setara 81.250 ton CPO.

Hal ini juga memungkinkan mereka untuk mengelola resiko harga dan melakukan lindung nilai terhadap pergerakan harga yang tidak menguntungkan di pasar fisik, terutama selama musim pasokan rendah.

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April - June 2022

Seorang pekerja memuat buah kelapa sawit ke truk di sebuah perkebunan di Sepang pada 30 Oktober 2019. — Gambar oleh Shafwan Zaidon A worker loads palm fruits onto a lorry at a plantation in Sepang October 30, 2019. — Picture by Shafwan Zaidon

BURSA MALAYSIA DERIVATIVES COMPLETES FIRST PHYSICAL DELIVERY OF EAST MALAYSIA CRUDE PALM OIL FUTURES IN SABAH

ursa Malaysia Derivatives Bhd has completed the first physical delivery of its East Malaysia Crude Palm Oil Futures Contract (Fepo) in Sabah on February 17, 2022. The delivery saw a total of eight contracts, representing 200 tonnes of crude palm oil (CPO) transacted between the seller, Green Edible Oil Sdn Bhd, and the buyer, Kunak Refinery Sdn Bhd at one of the approved Port Tank Installations in East Malaysia, namely in Sandakan, Sabah. The Port Tank Installation is operated by Sawit Bulkers Sdn Bhd, a wholly-owned subsidiary of Sawit Kinabalu Group, which is the premier investment arm of the Sabah state government in the oil palm industry. “The successful and orderly completion of the first physical delivery for Fepo contracts demonstrates the demand from Sabah producers to sell their CPO through an alternative platform with greater price transparency,” Bursa Malaysia Derivatives chief executive officer Samuel Ho Hock Guan said in a statement.

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He said the Fepo contract benefits Sabah refiners and buyers by allowing them to source CPO at competitive pricing. It also enables them to manage price risk and hedge against unfavourable price movement in the physical market, especially during the low-supply season. Meanwhile, Sawit Kinabalu Group managing director Datuk Bacho Jansie said the availability of Bursa Malaysia Derivatives’ Fepo contract provides East Malaysia market participants with an additional trading opportunity as well as an improved price discovery mechanism and more physical delivery options in Sabah and Sarawak. “As one of the designated delivery ports in Sabah, we hope to attract more market participants to lease out our available tanks and further increase the visibility of the East Malaysia palm oil market,” he said. The Fepo contract, which went live on October 4, 2021, provides East Malaysia CPO market participants with a new avenue to engage in physical deliveries and hedge their positions in the physical CPO market. It also strengthens Bursa Malaysia Derivatives’ Palm Complex offerings and provides price transparency in the East Malaysia CPO market, further cementing Malaysia’s position as the global centre for palm oil price discovery. From its launch date to February 8, 2022, Bursa Malaysia Derivatives recorded a total trading volume of 3,250 contracts which is equivalent to 81,250 tonnes of CPO.

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INSIGHTS

Palm Oil Today Indonesia

April - June 2022

PANGSA PASAR MINYAK KELAPA SAWIT :

FAKTOR UTAMA

da dua peristiwa yang akan menambah minat pemilihan saham oleh pemegang saham. Pertama, lonjakan harga minyak kelapa sawit mentah (crude palm oil / CPO). Kedua, pembukaan kembali perbatasan Malaysia pada 1 April. data foto NSTP Ada dua peristiwa yang akan menambah minat pemilihan saham oleh pemegang saham. Pertama, lonjakan harga minyak kelapa sawit mentah (crude palm oil / CPO). Kedua, pembukaan kembali perbatasan Malaysia pada 1 April.

MINYAK KELAPA SAWIT MENTAH

Ada banyak alasan untuk harga CPO yang melonjak RM 7.440,50 per ton pada 11 Maret (sumber: situs web Dewan Minyak Kelapa Sawit Malaysia). Pertama, kelangkaan minyak bunga matahari akibat konflik Rusia-Ukraina. Kedua, pemanenan minyak kelapa sawit pesaing terhambat oleh kondisi cuaca akibat tantangan perubahan iklim. Konsumen minyak matahari dan minyak lainnya sekarang segera melihat alternatif lain dan minyak kelapa sawit merupakan alternatif yang tersedia. Ketiga, beberapa negara menimbun CPO karena kelangkaan minyak. Hal ini telah mendorong harga CPO naik. Faktor lain yang mendorong harga CPO naik termasuk kekurangan tenaga kerja di Malaysia dan aturan kewajiban pasar domestik Indonesia yang membatasi ekspor CPO. Dan terakhir, prediksi menguat menciptakan permintaan saham perusahaan publik (public-listed company / PLC) yang terlibat dalam bisnis kelapa sawit. Kami membicarakan harga berdasarkan perkiraan kami. Tak perlu dikatakan, ada sentimen menguat terkait saham minyak kelapa sawit. Artikel sedang bersenang-senang menambahkan kegembiraan penguatan. Seperti yang tercatat sebelumnya, tampaknya ada dasar yang valid untuk kegembiraan tersebut. Lihatlah pernyataan baru-baru ini oleh Menteri Industri Perke bunan dan Komoditas, Datuk Zuraida Kamaruddin, yang memperkirakan harga CPO terus meningkat setidaknya hingga kuartal ketiga tahun ini dan mencapai RM 9.300 per ton. Ini adalah kenaikan sekitar RM 1.860 berdasarkan harga 11 Maret di angka RM 7.440,50. Kami ingat bahwa PLC minyak kelapa sawit sudah menghasilkan uang ketika harga CPO sekitar RM 3.000 per ton terlebih lagi dengan harga CPO yang astronomis saat ini, kata analis dan artikel. Kerusakan tambahan dari kenaikan harga CPO akan terserap pada produk konsumen yang menggunakan minyak kelapa sawit sebagai bahan utama ada banyak dan diprediksikan harga akan meningkat. PLC di sektor ini akan baik-baik saja jika mampu meneruskan kenaikan harga CPO ke konsumen. JIka tidak, akan ada kerugian di marjin mereka. Ya, telah ditegaskan bahwa sektor minyak kelapa sawit merupakan sektor yang patut dipertimbangkan karena empat alasan yang disebutkan.

PEMBUKAAN KEMBALI PERBATASAN

Acara akbar kedua yang akan membentuk pilihan saham investor adalah pembuakaan kembali perbatasan pada 1 April. Untuk sebagian besar, pembukaan perbatasan telah banyak dibicarakan dan tanggalnya telah diperdebatkan. Beberapa harga saham mungkin telah bergerak untuk mengakomodasi pembukaan kembali yang belum diketahui tanggalnya. Kini tanggalnya sudah diketahui, ada kemungkinan untuk memeras beberapa kenaikan lebih lanjut.

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Beberapa PLC akan menjadi penerima manfaat langsung sementara lainnya akan menjadi penerima manfaat sampingan. Sebuah penerima manfaat yang jelas adalah sektor aviasi karena turis dan penduduk lokal dapat melakukan perjalanan internasional. Ada dua perusahaan penerbangan publik dan mereka adalah Capital A Bhd (sebelumnya dikenal sebagai AirAsia Group Bhd) dan AirAsia X Bhd. Kedua perusahaan kini bekerja keras untuk mengatasi posisi keuangan mereka setelah diklasifikasikan dalam Catatan Praktik Nomor 17. Setelah perjalanan udara diizinkan, itu akan membantu meringankan beberapa kesulitan keuangan Capital A dan AirAsia X. Akan banyak penerbangan. Namun demikian, kenaikan harga bahan bakar kemungkinan akan menghambat pemulihan pendapatan saham maskapai penerbangan. Penerima manfaat langsung lainnya adalah operator bandara Malaysia Airports Holdings Bhd, terutama melalui volume biaya pelayanan penumpang yang lebih tinggi dari melambungnya lalu lintas penumpang. Turis akan berduyun-duyun ke tujuan populer dan penerima manfaat sampingan adalah industri perhotelan. Ketika berbicara tentang tujuan populer, Genting Malaysia Bhd dan Genting Bhd muncul di benak. Industri perhotelan secara umum akan diuntungkan karena Malaysia menawrkan salah satu, jika tidak, tarif hotel termurah di wilayah ini. Kemudian pabrik bir Carlsberg Brewery Bhd dan Heineken Malaysia Bhd. Mereka akan mendapatkan keuntungan dari normalisasi jam operasional restoran dan pub. Klub malam masih tidak diperbolehkan untuk beroperasional. Pusat perbelanjaan juga akan diuntungkan dengan peningkatan jumlah pengunjung dan pembelanjaan pelanggan. Manfaat ini diharapkan dapat diperoleh dari perusahaan perwalian investasi real estat yang memiliki pusat perbelanjaan raksasa di portofolio mereka.

RESIKO

Salah satu resiko yang harus dipertimbangkan adalah perang Rusia-Ukraina yang sedang berlangsung karena kami tidak tahu ke mana arahnya. Ini telah menjadi peredam di pasar saham global berkat interkonektivitas pasar modal selamat datang di desa global. Selain itu, kekurangan tenaga kerja asing akan mempengaruhi banyak indusrtri. Bayangkan, jika kami memiliki tenaga kerja yang cukup untuk memanen semua buah kelapa sawit (tandang buah segar) dan juga pada harga CPO yang berlaku saat ini, itu akan menjadi keuntungan besar bagi saham kelapa sawit dan investor. Tetapi waspadalah terhadap kehancuran permintaan karena harga CPO yang tinggi dapat menyebabkan negara-negara berpenghasilan rendah untuk mengurangi permintaan mereka dan menangguh pembelian mereka, yang mungkin akan melemahkan harga CPO. Jangan lupa bahwa Tiongkok masih memiliki kebijakan nol-COVID dengan penutupan akses yang ketat. Kami tidak akan mengharapkan banyak penerbangan turis Tiongkok di tanah kami dalam waktu dekat. *Penulis adalah direktur utama Minority Shareholders Watch Group

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INSIGHTS

Palm Oil Today Indonesia

April - June 2022

PALM OIL SHARES :

KEY FACTORS REOPENING OF BORDERS

The second mega event that is going to shape investors’ stock selection is the reopening of borders on April 1. To a large extent, the reopening has been much talked about and dates have been bandied about. Some share prices might have moved to accommodate the undated reopening. Now that the date is known, there is a possibility of squeezing out some further upside. Some PLCs will be direct beneficiaries while others will be collateral beneficiaries. An obvious beneficiary will be the aviation sector as tourists and locals can travel internationally. There are two listed airlines and they are Capital A Bhd (formerly known as AirAsia Group Bhd) and AirAsia X Bhd. Both companies are working hard to address their financial position after being classified under Practice Note 17.

here are two events that are going to add to shareholders’ stock selection interest. Firstly, it is the runaway crude palm oil (CPO) prices. Secondly, it is the imminent reopening of Malaysia’s borders on April 1. - NSTP file pic

Once air travel is allowed, that will help alleviate some of Capital A’s and AirAsia X’s financial distress. There will be much revenge flying. Nevertheless, the soaring fuel prices is likely to dent the earnings recovery of airline stocks.

THERE are two events that are going to add to shareholders’ stock selection interest. Firstly, it is the runaway crude palm oil (CPO) prices. Secondly, it is the imminent reopening of Malaysia’s borders on April 1.

Another direct beneficiary will be airport operator Malaysia Airports Holdings Bhd, especially through higher volume of passenger service charge from the robust rebound in passenger traffic. Tourists will flock to popular destinations and the collateral beneficiary will be the hotel industry.

CRUDE PALM OIL

There are many reasons for the runaway CPO price of RM7, 440.50 per ton as of March 11 (source: Malaysian Palm Oil Board website). Firstly, there is a shortage of sunflower oil due to the Russia-Ukraine conflict. Secondly, the harvest of palm oil’s competitor oils has been hampered by weather conditions resulting from climate change challenges. Consumers of sunflower oil and other oils now have to look at alternatives and palm oil is a readily available alternative. Thirdly, some countries are stocking up CPO due to the shortage of oils. This has driven CPO prices up. Other factors that drove CPO prices up include labor shortage in Malaysia and Indonesia’s domestic market obligation rule which restricts the export of CPO. And lastly, bullish predictions create demand for public-listed company (PLC) stocks that are involved in the palm oil business. We talk the price up based on our forecasts. Needless to say, there is bullish sentiment in the air when it comes to palm oil stocks. The blogs are having a fine time adding to the bullish exuberance. And as noted earlier, there seems to be a valid basis for such bullish exuberance. Take the recent statement by Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin, who expects the CPO price to continue rising at least until the third quarter of this year and reach RM9,300 per ton. That is an upside of about RM1, 860 based on the March 11 price of RM7, 440.50. We remember that palm oil PLCs were already making money when the CPO prices were around RM3, 000 per ton what more with the current astronomical CPO prices, analysts and blogs point out. The collateral damage of increasing CPO prices will be on the consumer products that use palm oil as a substantial ingredient there are many of them and expect their prices to go up. PLCs in this sector will be all right if they are able to pass the increased cost of CPO to consumers. Otherwise, there will be a dent to their bottom line. Yes, it has been pointed out that the palm oil sector is one that is worth considering for the four stated reasons.

www.indopalmoil.com

When talking of popular destinations, Genting Malaysia Bhd and Genting Bhd spring to mind. The hotel industry in general will be a beneficiary as Malaysia offers one of, if not, the cheapest hotel rates in the region. Then there are brewery counters Carlsberg Brewery Bhd and Heineken Malaysia Bhd. They will benefit from the normalization of operating hours in restaurants and pubs. Nightclubs are still not allowed to open. Shopping centers will also benefit from the increased footfall and spending by customers. This benefit is expected to accrue to the real estate investment trust companies which have the mega shopping centers in their portfolios.

RISKS

One of the risks that must be considered is the prevailing Russia-Ukraine war as we are not sure where it is heading. It has been such a dampener on global stock markets thanks to the interconnectivity of capital markets welcome to the global village. In addition, foreign labor shortage will affect many of the industries. Imagine, if we had enough labor to harvest all the oil palm fruits (fresh fruit bunches) and that too at prevailing CPO prices, it will be a major boon to palm oil stocks and investors. But beware of demand destruction as high CPO prices may cause lower-income nations to reduce their demand or hold back their purchases, which may weaken CPO prices. Let us not forget that China still has a zero-COVID policy with harsh lockdowns. We won’t be expecting flight loads of China tourists at our shores anytime soon. *The writer is chief executive officer of Minority Shareholders Watch Group

Palm Oil Today Indonesia

SUSTAINABILITY NEWS

April - June 2022

FGV MEMPERKENALKAN

PRODUK GULMA RAMAH-LINGKUNGAN UNTUK SEKTOR PERTANIAN FGV INTRODUCES

ENVIRONMENT-FRIENDLY WEEDING PRODUCT FOR AGRI SECTOR

F F

GV Holdings Bhd melalui anak perusahaannya, FGV Agri Services Sdn Bhd, memperkenalkan sebuah produk gulma ramah lingkungan dan hemat biaya untuk sektor pertanian, bernama “Weed Solut-ioN”. Produk tersebut diformulasi dengan 70% bahan tidak beracun dan bahan pembantu herbisida, sekaligus meningkatkan efisiensi bahan, tanpa meninggalkan efek fitotoksitas pada tanaman. Direktur Utama grup FGV Mohd Nazrul Izam Mansor mengatakan bahwa FGV berkomitmen untuk terus mengembangkan inovasi dan teknologi berkelanjutan dalam operasi bisnisnya yang juga akan berkontribusi terhadap kemajuan industri. “FGV selalu berusaha untuk menyediakan produk dan solusi pertanian premium kepada pelanggannya, dan kami sangat senang dapat menawarkan inovasi ramah lingkungan seperti ini kepada pasar,” katanya dalam sebuah pernyataan. Dia mencatat bahwa inisiatif Weed Solut-ioN sejalan dengan komitment FGV untuk menciptakan nilai lebih bagi grup dan pelanggannya melalui produk dan jasa berkelanjutan, mendukung prinsip Kesepakatan Minyak Kelapa Sawit Berkelanjutan (Roundtable on Sustainable Palm Oil / RSPO) dan Minyak Kelapa Sawit Berkelanjutan Malaysia (Malaysian Sustainable Palm Oil / MSPO). “Weed Solut-ioN merupakan salah satu inisiatif FGV untuk mengatasi kenaikan harga herbisida dan dalam menerapkan penghematan biaya untuk penyiangan yang efisien di perkebunan kelapa sawit kami. “Melalui produk ini, FGV menargetkan dapat menghemat hingga RM6 juta per tahun,” katanya. Menurutnya, produk tersebut mengurangi jumlah pemakaian herbisida hingga 50% tanpa mempengaruhi efektivitas herbisida ketika pemakaian sesuai dengan rasio yang ditentukan. Weed Solut-ioN diimpor dan diuji oleh FGV R&D Sdn Bhd dalam kolaborasinya dengan PT Pandawa Agri, perusahaan ilmu kehidupan yang berbasis dan beroperasi di Indonesia. “Melalui kemitraan yang strategis ini, FGV Agri telah diberikan hak eksklusif untuk memasarkan produk Weed Solut-ioN di Malaysia,” katanya.

GV Holdings Bhd via its subsidiary, FGV Agri Services Sdn Bhd, introduced an environmentally friendly and cost-efficient weeding product for the agriculture sector, named “Weed Solut-ioN”. The product was formulated with 70% non-toxic materials and herbicide adjuvant that can effectively decrease the rate of herbicide use, while increasing the efficiency of the substance, without leaving any phytotoxicity effects on crops. FGV group CEO Mohd Nazrul Izam Mansor said FGV is committed to continuously developing sustainable innovations and technologies in its business operations which also contributes to the advancement of the industry. “FGV always strives towards providing premium agricultural products and solutions to its customers, and we are thrilled to offer an environmentally-friendly innovation such as this to the market,” he said in a statement. He noted that Weed Solut-ioN initiatives are in line with FGV’s commitment to create more value for the group and its customers through sustainable products and services, supporting the principles of the Roundtable on Sustainable Palm Oil (RSPO) and Malaysian Sustainable Palm Oil (MSPO). “Weed Solut-ioN is also one of FGV’s initiatives in addressing the increasing prices of herbicides and in implementing cost-saving strategies for efficient weeding in our oil palm plantations. “Through this product, FGV targets to save up to RM6 million annually,” he said. According to him, the product reduces the rate of herbicide application by up to 50% without affecting the effectiveness of the herbicide itself when applied in the prescribed ratio. Weed Solut-ioN was imported and tested by FGV R&D Sdn Bhd in collaboration with PT Pandawa Agri, a life science company that is based and operates in Indonesia. “Through this strategic partnership, FGV Agri has been given the exclusive right to market the Weed Solut-ioN product in Malaysia,” he said. Moving forward, FGV expects sales of one million liters of Weed Solut-ioN per year with an estimated revenue of RM10 million. Concurrently, FGV Agri is the industry leader in the production and supply of high-quality oil palm planting materials, rodenticides, biopesticides and other premium agricultural products. It is also the largest producer of oil palm seeds in Malaysia with an annual market share of approximately 40%.

Kedepannya, FGV mengharapkan penjualan satu liter Weed Solut-ioN per tahun dengan estimasi pendapatan sebesar RM10 juta. Secara bersamaan, FGV Agri merupakan pemimpin industri dalam produksi dan pemasok bahan tanam kelapa sawit berkualitas tinggi, rodentisida, biopestisida, dan produk pertanian premium lainnya. Ia juga merupakan produsen benih kelapa sawit terbesar di Malaysia dengan pangsa pasar tahunan sekitar 40%.

www.indopalmoil.com

IN THE HOT SEAT

Ensuring the Sustainability of Oil Yield through HAUS’ Decanter Centrifuge Manager in 2017 and moved to Malaysia. He has been based in M alaysia since 2017 i n managing a nd d eveloping the

agency network as well as increasing the brand awareness of the company in the region.

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Palm Oil Today Indonesia

April - June 2022

Palm Oil Today Indonesia

April - June 2022

IN THE HOT SEAT

There was further pleasing news for us in 2021. We received our first repeat order from one of our existing Malaysian customers. This order was of great importance to clinch our success in the industry, and it motivated us significantly. Today, we continue our R&D studies without interruption to make our success in the palm oil sector permanent.

1. HAUS has been in the industry since 1954. Do share with us a little bit on HAUS’ background and milestones.

HAUS was founded by a young engine master in Aydın, Turkey in 1954. In the beginning, the company was providing equipment and services for only the olive oil industry. However, due to the increasing demands of our clients, the company started to manufacture different types of centrifuges for the needs of different industries. 1989 was a milestone for the company because the production of our very first decanter centrifuge and disc stack separator (purifier) was completed this year. After a couple of years, the first centrifuge export of the company was realized. Since 1990, we have provided different sizes and configurations of decanter centrifuges and disc stack separators (purifiers) for different industries. Today, we export more than half of our total production to more than 50 countries.

2. Could you share with us what are the operational challenges in palm oil mills nowadays? How can HAUS products help mitigate these challenges? I can answer your question by giving an example of a topic which has been very popular in recent years. As many of our readers are aware, process contaminants - namely 3-MCPDE became a widely discussed issue throughout the palm oil industry in recent years. These esters are formed during the refining of palm oil, especially at upstream stages. To curb and reduce this formation, we redesigned our purifiers. We now offer the combination of our decanters and purifiers to our customers to provide a thoughtful solution. Our decanters are helping to yield maximum oil from underflow sludge while our purifiers are helping to purify the recovered oil. By using our purifiers, more than 95% of the palm oil is obtained while 3-MCPD-causing substances from the oil are reduced.

2015 was another milestone for the company because our Southeast Asia Regional office was opened in Malaysia. The palm oil industry played an important role in our decision to open our regional office in Malaysia. As you know, decanter centrifuges and disc stack separators (purifiers) are often used in palm oil mills for oil clarification purposes, and unfortunately, there was not enough competition for centrifuges in the palm oil industry since the centrifuge market had been dominated by just a few suppliers. This situation intrigued us. We thought palm oil customers would be eager to see a new centrifuge supplier in the industry. Accordingly, we set up our regional office in Malaysia and started our R&D studies for the palm oil industry. I can say that our R&D studies were concluded very quickly. As a result of our trials (we conducted studies into different processes at a few different palm oil mills), we could design our palm oil machine configuration, and we sold our very first palm oil decanter to our Malaysian customer in 2018. Thanks to the high performance of our first machine and the positive feedback of our first customer, we were able to impress our other customers in the region. After 2018, we started to get palm oil decanter orders from both Southeast Asian countries and South America, and we successfully commissioned these machines.

www.indopalmoil.com

IN THE HOT SEAT

Palm Oil Today Indonesia

April - June 2022

3. How does HAUS’ decanter centrifuge differs from other products that offer the same solution?

We decided to do something out of the ordinary while we designed our palm oil decanters and purifiers. In the palm oil industry, both decanter centrifuges and purifiers are supplied with very simple control systems for ease of use. However, we designed our products with advanced control systems where the operation of the machine can be controlled live from the other end of the world. For example, our service engineer who is in our factory can operate our palm oil decanter which is installed in Johor, Malaysia without the need to physically appear at the site. Our system is very detailed, so much so that our service engineer in our factory can even diagnose a loosened cable termination at the site while observing the error in PLC. Thanks to this system, we have managed to keep all our machines in working condition, especially in the past few years when travel restrictions were very strict and we were not able to travel freely. 4. What are some of HAUS’s expansion plans in this region? Are there any other palm oil-producing countries HAUS is planning to expand into outside Asia? We decided to start our journey in the palm oil industry in Malaysia since our regional office is located here. As I mentioned in my answer to your previous question, we carried out our first R&D studies and field trials in Malaysia and we sold our very first machines to our Malaysian customers. After this stage, our sales and marketing teams did a great job and promoted our performance results to other palm oil customers in different countries. We received our first order outside of Malaysia from Thailand. In the same year, we received our first orders from South America. Due to the size of the palm oil sector, our primary target market is the Southeast Asian region for now. However, we are also following the industry in the South American region closely and aiming to penetrate the West and Central African markets very soon. 5. What do you feel could be improved in the palm oil mills currently? What role could technology play?

As you know, years ago people kept vegetable oils in large tanks to separate the oil phase from its residues. Even today, many companies continue to use this practice. However, this process takes a lot of time and space. Centrifuge technology was invented with the development of technology over time. Today, thanks to centrifuge technology, it is now much easier and takes much less time to separate the vegetable oils from their residues. Now, the main demands of the oil producers are to make the separation of oils and residues more efficient by spending less energy and labor. This is a very reasonable demand in terms of sustainability. We continue to work on this demand by using the latest technologies to provide more sustainable solutions to our customers. For example, we use high-energy-efficiency motors in our machines, we regenerate the used energy back into our systems, we use advanced control systems in our machines that require minimal manpower, and we continuously improve our machine design to result in maximum oil yields. In this way, we are increasing the process efficiencies of our customers while helping to reduce their operational costs.

www.indopalmoil.com

INNOVATION AND TECHNOLOGY

Palm Oil Today Indonesia

April - June 2022

Perkebunan kelapa sawit harus mencari cara untuk menggunakan tenaga kerja yang lebih sedikit untuk memanen. Oil palm plantations must find a way to use less labour in harvesting.

TEKNOLOGI AI, PESAWAT NIRAWAK DAPAT MEMBANTU INDUSTRI MINYAK KELAPA SAWIT

da kekhawatiran yang meningkat terkait larangan impor produk minyak kelapa sawit ke Amerika Serikat. Beberapa perusahaan dikenai perintah pelepasan tangguhan (withhold release order / WRO) oleh badan Perlindungan Perbatasan dan Bea Cukai (Customs and Border Protection / CBP) AS atas klaim kerja paksa. Perusahaan yang terpengaruh telah mengumpulkan bukti untuk membersihkan nama mereka agar dapat mengamankan barang mereka masuk ke pasar AS. Industri tersebut juga mencari solusi jangka panjang. Sekitar 100 orang baru-baru ini bergabung dalam diskusi daring yang diadakan oleh Sekolah Hukum Universiti Malaya. Webinar tersebut terbukti sangat infomartif. Solusi membangun diusulkan. Rupanya, seperti yang dijelaskan oleh pejabat Dewan Minyak Kelapa Sawit Malaysia (Malaysian Palm Oil Board / MPOB) yang berbasis di Washington, hukum AS atas kerja paksa bukanlah hal baru. Ia telah ada selama beberapa dekade. Tetapi, dalam undang-undang aslinya, hanay produk impor ang bersaing dengan produk lokal AS yang dikenai larangan itu. Produk lain terhindar dari hukum. Perubahan ini terjadi pada tahun 2016, ketika administrasi Presiden Barack Obama, undangundang diberlakukan untuk semua produk impor. Sejak itu, banyak produk impor yang terkena dampak. Minyak kelapa sawit bukanlah yang pertama. Menurut informasi yang dibagikan di webinar, kami telah mengetahui hal ini selama ini. Pemerintah sebenarnya telah membuat undangundang untuk membuat bisnis sesuai dengan standar Organisasi Tenaga Kerja Internasional tentang kerja paksa. Tapi kami lemah dalam penegakan dan implementasi. Beberapa kriteria terkait kondisi kehidupan pekerja yang buruk, penahanan paspor pekerja dan gaji yang sangat rendah. Di bawah persyaratan impor tenaga kerja asing, jumlah yang harus dibayar pekerja untuk mendapatkan pekerjaan di sini bisa menahan mereka selama bertahun-tahun, sehingga memaksa mereka untuk bekerja agar dibebaskan dari ikatan tersebut. Seluruh panelis setuju bahwa masalah kerja paksa tetap ada. Ada kemungkinan besar bahwa keputusan tersebut dapat diadopsi oleh negara lain. Hal ini sejalan dengan permintaan ESG baru pada bisnis secara global. Ada yang mengatakan bahwa bisnis yang gagal menerapkan ESG (praktik baik dalam lingkungan, sosial dan tata kelola), akan menghadapi tantangan dalam urusan bisnis mereka. Di Malaysia, sektor yang paling banyak menggunakan tenaga kerja asing termasuk konstruksi, perkebunan, manufaktur dan

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makanan & minuman (food & beverage / F&B). Tekanannya lebih sedikit pada sektor konstruksi dan F&B karena mereka tidak mengekspor. Selain larang impor AS, industri minyak kelapa sawit juga menghadapi kekurangan tenaga kerja. Dengan harga minyak kelapa sawit kini menyentuh RM7.000 per ton, kekurangan tenaga kerja menyebabkan industri kehilangan miliaran Ringgit dari buah kelapa sawit yang belum dipanen. Tampaknya masalah kekurangan tenaga kerja tidak akan hilang dalam beberapa waktu dekat. Jika masalah larangan impir dan kekurangan tenaga kerja tidak diatasi, industri minyak kelapa sawit akan menghadapi masa sulit dalam beberapa tahun kedepan. Penghapusan yang direncanakan dari kecanduan industri terhadap tenaga kerja asing murah harus dipertimbangkan secara serius. Industri tidak boleh mengabaikan investasi yang lebih terpadu dalam teknologi untuk menghindari ketergantungan yang berlebihan pada tenaga kerja murah. Selama bertahun-tahun, industri telah mengimplementasikan banyak pendekatan mekanisasi untuk mengurangi ketergantungan mereka pada tenaga kerja. Tetapi mekanisasi panen masih belum terselesaikan. Industri mungkin perlu melihat kembali hambatan dalam adopsi teknologi. Kini ada banyak teknologi hemat tenaga kerja yang tersedia sebagai hasil dari investasi dalam penelitian dan pengembangan selama bertahun-tahun. Mereka termasuk robotika dan pesawat nirawak, kecerdasan buatan (artificial intelligence / AI) dan digitalisasi. Kami tidak hanya perlu meningkatkan investasi dalam Litbang, tetapi juga memanfaatkan tenaga penelitian di lokal dan internasional untuk mengembangkan teknologi serupa. Menggunakan MPOB sebagai pusat Litbang, aliansi penlitian baru atas mekanisasi dan otomatisasi harus dibentuk untuk mewujudkan hal ini. Aliansi penilitian harus membawa inisiatif Litbang di universitas dan pusat penelitian lainnya, seperti MIMOS dan SIRIM. Aliansi tersebut juga harus menjajaki hubungan dengan pusat Litbang internasional yang berspesialisasi dalam teknologi otomatisasi yang relevan. Jika tidak, masalah tenaga kerja seperti ini akan terus menghantui industri ini di tahun-tahun mendatang. Oleh: Professor Datuk Dr Ahmad Ibrahim, Tan Sri Omar Centre for STI Policy, UCSI University

Palm Oil Today Indonesia

April - June 2022

INNOVATION AND TECHNOLOGY

AI, DRONE TECH CAN HELP PALM OIL INDUSTRY

here is growing concern about the import ban on palm oil products into the United States. A few companies were slapped with the withhold release order (WRO) by the US Customs and Border Protection (CBP) agency on claims of forced labour. The affected companies have submitted evidence to clear their names to secure the entry of their goods into the US market. The industry is also seeking more lasting solutions. About 100 people joined the recent online discussion on the issue hosted by the Law School of Universiti Malaya. The webinar proved very informative. Constructive solutions were proposed. Apparently, as explained by the Malaysian Palm Oil Board (MPOB) officer based in Washington, the US law on forced labour is not new. It has been around for many decades. But, in the original act, only imported products which competed with locally produced US products were subjected to such a ban. Other products were spared from the ruling. This changed in 2016, during the President Barack Obama administration, when the law was made to apply to all imported products. Since then, many imported products were affected. Palm oil is not the first. According to information shared during the webinar, we have been aware of this all along. The government has in fact created laws to get businesses to conform to the International Labour Organisation standards on forced labour. But we have been weak on enforcement and implementation. Some of the criteria relate to poor living conditions of workers, the withholding of workers’ passports and very low pay. Under the requirements for the import of migrant labour, the amount that workers have to pay to secure jobs here can hold them in bondage for years, therefore forcing them to work to be relieved from such bondage. All the panellists agreed that the issue of forced labour is here to stay. There is a good chance that the ruling may be adopted by other countries. This is in line with the new ESG demand on businesses globally. Some say those businesses which fail to embrace ESG (good practices in environment, social and governance), will face obstacles in their business dealings.

In Malaysia, sectors which mostly use migrant labour include construction, plantation, manufacturing and food and beverage (F&B). The pressure is less for construction and F&B sectors since they are not exporting. Apart from the US import ban, the palm oil industry also faces labour shortages. With the current historic palm oil price touching RM7, 000 per ton, the shortage of migrant labor causes the industry to lose billions of ringgit in unharvested oil palm fruits. It appears that this issue of labour shortage won’t go away anytime soon. Unless the problems of import ban and labour shortage are addressed, the palm oil industry will face hard times in the coming years. A planned phasing out of the industry’s addiction to cheap migrant labour should receive serious consideration. The industry must not discount a more concerted investment in technology to wean away from being over reliant on cheap labour. Over the years, the industry has implemented many mechanisation approaches to ease their dependence on labour. But the mechanisation of the harvesting operation remains unresolved. The industry may need to relook the bottlenecks in the adoption of technologies. There are now labour-saving technologies available as a result of years of investment in research and development. They include robotics or drones, artificial intelligence (AI) and digitalisation. We need to not only boost our investment in R&D, but also tap into the best research brains locally and internationally to develop such technologies. Using MPOB as the anchor R&D centre, a new research alliance on mechanisation and automation should be established to deliver this. The research alliance should bring in R&D initiatives at universities and other research centres, such as MIMOS and SIRIM. The alliance should also explore links with international R&D centres which specialise in the relevant automation technologies. Otherwise, such labour concerns will continue to haunt the industry in years to come. By: Professor Datuk Dr Ahmad Ibrahim, Tan Sri Omar Centre for STI Policy, UCSI University

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INNOVATION AND TECHNOLOGY

Palm Oil Today Indonesia

April - June 2022

SAP, TEKNOLOGI BLOCKCHAIN PERCONTOHA UNILEVER YANG MENDUKUNG MINYAK KELAPA SAWIT BEBAS DEFORESTASI

ahan baku seperti minyak kelapa sawit sering dicampurkan dengan bahan baku yang serupa secara fisik dari sumber berkelanjutan yang terverifikasi maupun tidak setelah “mil pertama” rantai pasokan, menyebabkan informasi awal tersembunyi bahkan hilang. Dalam sebuah bukti konsep yang sukses di Indonesia, Unilever menerapkan GreenToken untuk mendapatkan lebih dari 188.000 ton buah kelapa sawit. Solusi tersebut memungkinkan Golden Agri-Resources dan pemasok lain yang memasok ke Unilever untuk menciptakan token yang mencerminkan aliran minyak kelapa sawit di seluruh rantai pasokan dan menangkap atribut unik yang terkait dengan asal minyak tersebut. “Dengan GreenToken, kami ingin menghadirkan keterlacakan dan transparansi rantai pasokan yang sama ke bahan baku curah yang anda dapatkan dengan memindai kode QR pada produk konsumen manapun,” kata Nitin Jain, pendiri dan manajer umum GreenToken, dari solusi SAP, SAP. “Solusi kami memungkinkan perusahaan untuk memberitahu berapa persentase produk minyak kelapa sawit yang mereka beli dari sumber berkelanjutan dan dan melacaknya hingga ke produk konsumen akhir.” “Teknologi telah memainkan peranan penting dalam upaya kami untuk meningkatkan visibilitas dan transaparansi dalam

rantai pasokan minyak kelapa sawit kami sendiri,” kata Anita Neville, kepala bagian keberlanjutan dan komunikasi, Golden Agri-Resources. “Partisipasi kami dalam GreenToken dari solusi SAP dalam pecontohan solusi dengan SAP dan Unilever memberikan wawasan yang berguna tentang cara menyampaikan informasi dengan sukses antara berbagai pelaku dalam rantai pasokan.” Solusi GreenToken membantu Unilever melacak, memverifikasi dan melaporkan dalam waktu nyata sumber dan perjalanan yang dilalui minyak kelapa sawit melalui rantai pasokannya yang panjang dan kompleks. “Unilever berkomitment untuk mencapat rantai pasokan bebas deforestasi pada tahun 2023, dan teknologi blockchain berpotensi membantu perusahaan, seperti kami, untuk melacak rantai pasokan mereka untuk memastikan komoditas yang kami peroleh menghormati manusia dan planet ini,” kata Dave Ingram, kepala bagian pengadaan, Unilever. “Kami didorong oleh hasil yang menjanjilkan dari percontohan kami dengan GreenToken dari SAP, bagian terbaru dalam pendekatan kami yang didukung teknologi untuk memastikan rantai pasokan yang lebih mudah dilacak dan transparan.” Bekerjasama dengan GreenToken meningkatkan upaya Unilever yang sedang berlangsung dan terkemuka di industri untuk mendapatkan visibilitas penih dari rantai pasokannya.

SAP, UNILEVER PILOT BLOCKCHAIN TECHNOLOGY SUPPORTING DEFORESTATION-FREE PALM OIL

aw materials like palm oil are often mixed with physically identical raw materials from verified sustainable and nonverified sources after the “first mile” of the supply chain, causing the origin information to be either hidden or lost. In a successful proof of concept in Indonesia, Unilever applied GreenToken to source more than 188,000 tons of oil palm fruit. The solution enabled Golden Agri-Resources and other suppliers from whom Unilever sources to create tokens that mirror the material flow of the palm oil throughout the supply chain and capture the unique attributes linked to the oil’s origin. “With GreenToken, we want to bring the same traceability and supply chain transparency to bulk raw materials that you get from scanning a bar or QR code on any consumer product,” said Nitin Jain, co-founder and general manager of the GreenToken by SAP solution, SAP. “Our solution allows companies to tell what percentage of palm oil products they purchased from a sustainable origin and track it to the end consumer product.”

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“Technology has played an important role in our efforts to enhance visibility and transparency in our own palm oil supply chains,” said Anita Neville, chief sustainability and communications officer, Golden Agri-Resources. “Our participation in the GreenToken by SAP solution pilot with SAP and Unilever provided useful insights in how to successfully pass information between different actors in the supply chain.” The GreenToken solution helped Unilever track, verify and report in near real time the origins and journey that palm oil takes through its long and complex supply chain. “Unilever is committed to achieving a deforestation-free supply chain by 2023, and blockchain technology has the potential to help companies, like ours, track their supply chains to ensure the commodities we source respect people and the planet,” said Dave Ingram, chief procurement officer, Unilever. “We are encouraged by the promising results of our pilot with GreenToken by SAP, the latest building block in our tech-enabled approach to ensure a more traceable and transparent supply chain.” The work with GreenToken enhances Unilever’s ongoing and industry leading efforts to gain full visibility of its supply chain.

Palm Oil Today Indonesia

April - June 2022

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INNOVATION AND TECHNOLOGY

Palm Oil Today Indonesia

April - June 2022

TEKNOLOGI AI DAPAT MENJADI PENGUBAH CARA MAIN INDUSTRI MINYAK KELAPA SAWIT

EKNOLOGI menggerakkan sebagian besar dunia. Kecerdasan buatan (Artificial intelligence / AI) merupakan salah satu teknologi yang kini sedang heboh. Kekuatan AI tidak bisa lagi diabaikan. Bersama dengan teknologi lainnya, termasuk Internet of Things dan tobotika, AI mengubah permainan bisnis dan industri. Bisnis global melihat AI sebagai semacam obat mujarab, karena dunia terus melakukan digitalisasi. AI mengacu pada teknologi yang dapat menandingi kecerdasan manusia, membuat mesin melakukan tugas hampir sama dengan manusia. Algoritma perangkat lunak berada di belakang teknologi ini. AI telah menjadi menarik karena ia dapat membantu bisnis bertumbuh, meningkatkan pengambilan keputusan yang kompleks, dan merubah bisnis menjadi lebih cerdas. Kata “kecerdasan buatan”, diciptakan oleh John McCarthy pada tahun 1950-an, pada dasarnya mengacu pada kemampuan program komputer untuk belajar dan berpikir. Banyak masalah dunia yang kini melirik AI untuk jawaban. Masalah limbah global, yang telah menjadi lebih kompleks, menggunakan AI untuk mengatur pengumpulan dan penanganan akhir yang lebih baik pada fasilitas pemrosesan limbah. Memonitor polusi, terutama di sungai dan saluran air, menggunakan teknologi sensor jarak jauh untuk menangkap gambar yang kemudian diuraikan menggunakan AI. Teknologi pencitraan satelit yang sama digunakan untuk memantau hutan, mencari kasus pembalakan liar. Manufaktur menggunakan AI untuk meningkatkan produktivitas serta meningkatkan kualitas produk. Area lain yang menggunakan AI secara ekstensif adalah analitik data. Hal ini melibatkan jumlah data yang besar untuk lebih mengerti tren pasar dan pilihan konsumen. Media sosial merupakan sumber utama data sejenis itu. Bisnis ritel sedang aktif menggunakan AI untuk memahami data secara bisnis. Seiringnya, pertanian juga menggunakan AI untuk menyelesaikan banyak tantangannya. Industri minyak kelapa sawit juga sudah lama mengincar AI untuk menyelesaikan masalah produktivitas dan pemasarannya. Masalah persepsi konsumen terhadap minyak kelapa sawit terus berlanjut meskipun banyak langkah telah diambil oleh industri. Industri tetap disibukkan dengan pertempuran untuk menetralisir penyebaran berita palsu dan ketidakbenaran tentang minyak kelapa sawit. Senang mendengar bahwa Kementerian Perkebunan sedang melakukan serangan terhadap tantangan tersebut. Sudah waktunya, karena industri tersebut sudah terlalu lama berada di posisi bertahan. Salut buat kementerian.

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Produktivitas telah muncul sebagai tantangan yang lebih berat belakangan ini bagi industri minyak kelapa sawit. Kami berbicara mengenai kehilangan panen yang telah menyangkal banyak pendapatan industri. Dengan harga minyak kelapa sawit yang tinggi saat ini, mencapai hingga RM5.000 per ton, buah kelapa sawit yang tidak terpanen mengakibatkan kerugian miliaran Ringgit. Kekurangan tenaga kerja telah menjadi alasan utama mengapa banyak kelapa sawit yang tidak dipanen. Tetapi bukan hanya tenaga kerja yang mengakibatkan kerugian. Ini juga terkait memanen pada saat yang tepat dan ketika buah sudah matang dengan optimal. Teknik buah longgar telah banyak digunakan untuk memutuskan waktu panen tidaklah sepenuhnya dapat diandalkan. Kita dapat melihat persentase yang tinggi buah yang belum matang di pabrik. Orang dapat melihat bukti persentase tinggi dari buah-buahan mentah di pabrik. Buah yang tidak matang berarti kandungan minyak yang rendah. AI dapat memainkan peranan di sini. Masalah tenaga kerja tidaklah baru. Sudah lama ada kekhawatiran industri ini terlalu bergantung pada tenaga kerja asing. Pandemi telah memperburuk situasi. Di sinilah AI bersama dengan robotika dan pesawat nirawak dapat membantu. Industri minyak kelapa sawit perlu menggunakan strategi yang efektif untuk merangkul AI. Penelitian dan pengembangan merupakan pusat dari strategi ini. Melalui Dewan Minyak Kelapa Sawit Malaysia, industri harus berinvestasi di sebuah pusat yang didedikasikan untuk pengembangan AI di seluruh spektrum produksi minyak kelapa sawit, mulai dari perkebunan hingga proses manufaktur produk dan logistik bernilai tambah. Melalui penggunaan AI, industri dapat dengan baik memantau kinerja keberlanjutan industri, termasuk dampat emisi dan tangkapan gas rumah kaca. Karena tekanan masalah iklim terus membebani industri, AI dapat membantu memposisikan secara positif citra lingkungan industri. Faktanya, dengan adopsi AI dan teknologi digitalisasi yang berkaitan, lebih banyak anak muda mungkin akan tertarik untuk bekerja dalam industri ini. Dalam hal ini, AI dipandang sebagai pengubah permainan dalam industri minyak kelapa sawit. Oleh: Professor Datuk Dr Ahmad Ibrahim, Tan Sri Omar Centre for STI Policy, UCSI University

Palm Oil Today Indonesia

April - June 2022

INNOVATION AND TECHNOLOGY

AI TECHNOLOGY CAN BE GAME CHANGER FOR PALM OIL INDUSTRY

ECHNOLOGY drives much of the world. Artificial intelligence (AI) is one technology now making waves. The power of AI can no longer be ignored. Together with the other technologies, including the Internet of Things and robotics, AI is changing the game of business and industry. Global businesses look at AI as a panacea of sort, as the world continues to digitalise.

Productivity has emerged as a more daunting challenge in recent times for the palm oil industry. We are talking about crop losses which have denied the industry of much revenue. At the current high price of palm oil, touching RM5,000 per ton, unharvested oil palm fruits have resulted in billions of ringgit in losses.

AI refers to a technology that can match human intelligence, making machines perform tasks almost like humans. Software algorithms are behind the technology. AI has become attractive as it can help deliver business growth, improve complex decision making, and transform businesses to become more intelligent.

Labour shortage has been largely the reason why huge tracts of oil palms have not been harvested. But, it is not just labour that has contributed to the losses. It is also about harvesting at the right time when the fruits are optimally ripe. The loose fruits technique which is widely used to decide harvesting time is not fully reliable.

The words “artificial intelligence”, coined by John McCarthy in the 1950s, essentially refers to the ability of a computer programme to learn and think. Many problems of the world now look to AI for answers. The global waste issue, which has grown increasingly complex, deploys AI to better organise collection and eventual treatment at waste-processing facilities.

We can see a high percentage of immature fruit on the plant. One can see evidence of a high percentage of unripe fruits at the mills. Unripe means low oil content. AI can definitely play a role here. The issue of labour is not recent. For a long time, there has been concern that the industry has been over dependent on foreign labour.

The monitoring of pollution, especially of rivers and waterways, uses remote sensing technology to capture images which are then deciphered using AI. The same satellite imaging technology is used to monitor the forests, looking for cases of illegal logging. Manufacturing deploys AI extensively to increase productivity as well as improve product quality. The other area which deploys AI extensively is data analytics. This involves analysing vast amount of data to better understand market trends and consumer choices.

The pandemic has exacerbated the situation. This is where AI together with robotics and drones can help. The palm oil industry needs the right strategy to effectively embrace AI. Research and development are central to the strategy.

The social media is a major source of such data. Retail businesses are actively using AI to make business sense of the data. Increasingly, agriculture is also looking to AI to resolve many of its challenges. The palm oil industry has been eyeing AI for some time now to resolve its productivity and marketing issues.

Through the use of AI, the industry can better monitor the sustainability performance of the industry, including the impact on greenhouse gas emissions and capture. As pressures of climate concerns continue to bear on the industry, AI can help positively position the environmental image of the industry. In fact, with the adoption of AI and other related digitalise tehnologies, more young people may be attracted to work in the industry. In this regard, AI is seen as a real game changer for the palm oil industry.

Palm oil’s consumer perception issue continues to linger on despite the many steps taken by the industry. The industry remains preoccupied with the battle to neutralise the spread of fakes and untruths about palm oil. It is good to hear that the Ministry of Plantations is going on an offensive to deal with the challenge. It is about time too, as the industry has been defensive for far too long. Kudos to the ministry.

Through the Malaysian Palm Oil Board, the industry should invest in a centre dedicated to the development of AI in the entire spectrum of palm oil production, from plantation down to processing and the manufacture of value added products and logistics.

By: Professor Datuk Dr Ahmad Ibrahim, Tan Sri Omar Centre for STI Policy, UCSI University

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Palm Oil Today Indonesia

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