Roundtable sustainable palm oil (rspo) as an environmental solution of problems in national industrial oil palm plantation icon

Roundtable sustainable palm oil (rspo) as an environmental solution of problems in national industrial oil palm plantation




НазваRoundtable sustainable palm oil (rspo) as an environmental solution of problems in national industrial oil palm plantation
Дата02.03.2014
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ROUNDTABLE SUSTAINABLE PALM OIL (RSPO) AS AN ENVIRONMENTAL SOLUTION OF PROBLEMS IN NATIONAL INDUSTRIAL OIL PALM PLANTATION


Alfi Irfan, student

Resources and Environmental Economics Department; Economics and Management Faculty; Bogor Agricultural University, Indonesia


Crude Palm Oil (CPO) is one of the mainstay of Indonesia’s export products. It’s used as raw materials for oelo-based industrial products. Indonesia is the largest palm oil producing country in the world's(since 2006), followed by Malaysia (Oil World,2007). From the demand side, factors supporting rapid growth in palm oil industries, among others, due to the large potential market demand, both in domestic and international markets. So far, oil palm plantations have a strategic role in development in Indonesia. CPO export value increased to U.S. $ 400 million, from U.S.$ 3.1 billion in January to $ 3.5 billion in August 2006. In terms of state revenue / foreign exchange earnings in 2008 had reached U.S. $ 10.7 billion, 13.5 tiliun export levies, labor as much as 3.7 million people, and others. as much as 3.7 million people, and the others.

From the supply side, Indonesia the soil and climate conditions suitable for oil palm plantations on a large scale, although it appears to pro-cons, especially those relating to the preservation of natural resources and oil palm plantation area. Based on data from the Directorate General of Plantation and the Central Bureau of Statistics until 2008 CPO production reached 17.11 million tons of oil palm plantation covering an area of ​​6.61 million hectares, that is very large.

Performance in the Indonesian CPO industry can not always go well. Some time ago it was reported that happens the world rejection of the main products and derivative products are exported, especially to some countries in Europe, because almost all products exported CPO was not able to show certification of the RSPO (Roundtable on Sustainable Palm Oil). Until now palm oil development is often confronted with some negative issues. For example, the cause of environmental degradation and biodiversity, the causes of land degradation and deforestation, marginalization of local populations, and so many others that very harmfull.

In connection with the favorable prospects of the Indonesian CPO industry, the government is expected to support the establishment of certification mandatory for all products of CPO and its derivatives to guarantee the Indonesian products derived from sustainable plantation management (sustainable). It is necessary for products from Indonesia are not less competitive in export markets, especially Europe is very concerned with environmental issues, which accused the forest fires in Indonesia caused by the opening of oil palm plantations, and so forth.

The important of RSPO principles is the management of sustainable palm oil plantations to maintain soil fertility, concerned with environmental issues and socially acceptable, granting benefits to the community gardens, and the transfer of land use from the community to the company. On that basis, it is known that the implementation of RSPO principles and criteria will certainly provide additional cost to reach 50 percent at the opening of land for plantations. In addition, through the application of the RSPO is expected to bring additional consequences on the cost of palm oil production process into the core product and derivative products, and ultimately will reduce the amount of palm oil production itself. However, businesses are expected to get increased production and efficiency in the next few years after the RSPO principles and criteria are applied. Allegedly with the implementation of RSPO palm oil companies, then the production will fluctuate, in the early stages of production decline because there is an adjustment to the RSPO, but then again increase production if export markets have received back an environmentally friendly palm oil products (already implementing RSPO).

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