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Oil Palm to Dominate Plantation Investment for the Next 5 Years

23

Sep

Oil Palm to Dominate Plantation Investment for the Next 5 Years

For the plantation itself, the investment target for the next 5 years will reach Rp 1.567, 1 trillion. The details are, oil palm (oil [...]

Oil Palm to Dominate Plantation Investment for the Next 5 Years.   For the plantation itself, the investment target for the next 5 years will reach Rp 1.567, 1 trillion. The details are, oil palm (oil palm-cattle-corn integration) 70 percent, sugarcane 26 percent, tobacco 1 percent and others (rubber, coffee, cocoa, spices) 3 percent.
“It is still dominated by oil palm, followed by sugarcane with the development of 15 Sugar Mills (PG) that will be directed outside Java Island with a total value of Rp 45 trillion,” said the Director General of Plantations, Ministry of Agriculture, Kasdi Subagyono, in an official statement received by InfoSAWIT, Thursday (19/9/2019).
Investment in the plantation sub-sector, said Kasdi, is indeed directed to its downstream industry because its value will be much higher than just an upstream. “It depends on where investors can afford. Whether to the upstream, especially seeds or downstream. But from our side (Dirjenbun), we will direct it to the downstream because the results are much higher than just the upstream,” explained Kasdi.
Kasdi admitted that investment is still small compared to exports. This is due to policy problems (permits). In order for the investment process in Indonesia to run smoothly, several policies are cut or merged, so that the permitting process is much easier, without being complicated. “Actually, the requirements are not difficult, having capital and commitment, can run immediately,` he said.
Meanwhile, referring to data from BPS, it indicates that the plantation's contribution is 97.4 percent to the export volume of the agricultural sector and contributes 96.9 percent to the export value of the agricultural sector. It is only natural if the plantation sub-sector becomes the largest contributor of foreign exchange from the agricultural sector.
In order for the export value of plantations to increase, it is necessary to accelerate investment. Data from the Investment Coordinating Board (BKPM), investment in agriculture during 2009-2013 was still low, which was only Rp 96.1 trillion. Then in the period 2014-2018 it increased by 150.7 percent or Rp 240.8 trillion.
“Based on our data, for the time being there are 514 potential investors who are interested in investing in the plantation sub-sector. The value is quite high, which is around Rp 313 trillion,” he said, during the Plantation Sector Investment Acceleration, Get-together and Consolidation event in Jakarta. (T2)
Source: InfoSawit.com

Palm Oil-Based Energy Development Accelerated

17

Sep

Palm Oil-Based Energy Development Accelerated

“This year, CPO absorption reached 6.2 million tons. With the addition of around 1 million tons for export, there is a new market of around 7 [...]

Palm Oil-Based Energy Development Accelerated. “This year, CPO absorption reached 6.2 million tons. With the addition of around 1 million tons for export, there is a new market of around 7 million tons of palm oil. If the B30 program runs, there will be additional absorption of 3 million tons,” said the President Director of the Palm Oil Plantation Fund Management Agency (BPDP-KS), Dono Boestami, in an event attended by InfoSAWIT recently in Jakarta.
Meanwhile, for renewable energy development in the form of Green Diesel, it has been carried out in the laboratory on a small scale with the pilot scale to be carried out in Dumai and Plaju Refineries. After that, if it becomes commercial, it will be carried out in Balongan and Cilacap Refineries.
With Green Diesel production, the national diesel demand is expected to be met at around 20 to 25 million kiloliters. “If it is up and running, it means the domestic demand has been met and the good thing is that this program is beneficial for the people and does not disrupt business people,” he said.
In addition to supporting the development of biofuel, the downstream sector development supported by the BPDP-KS also includes the development of the oleochemical industry, and biofuel for the needs of the State Electricity Company (PLN).
For your information, national CPO production is projected to continue increasing, with BPDP-KS records, CPO and its derivative production in 2017 in the number of 42 million tons, this number continued to rise in 2018 which reached 47.4 million tons. (T2)
Source: InfoSawit.com

Palm Oil in Food and Energy Security as Well as Its Contributions to the SDGs

10

Sep

Palm Oil in Food and Energy Security as Well as Its Contributions to the SDGs

Second, palm oil has a high content of various vitamins, including, according to Palm Oil Human Nutrition (1989), the highest content of vitamin E of [...]

Palm Oil in Food and Energy Security as Well as Its Contributions to the SDGs. Second, palm oil has a high content of various vitamins, including, according to Palm Oil Human Nutrition (1989), the highest content of vitamin E of any vegetable oil, where tocopherol and tocotrienol found in palm oil are antioxidant elements in vitamin E and, according to Hariyadi (2010), it has a high vitamin A content that even exceeds that of carrots and tomatoes.
In addition, palm oil has a balanced content of essential fatty acids. As antioxidants, tocopherol and tocotrienol have been shown in research to have benefits in fighting cancer, cardiovascular disease, nerve cell degeneration, oxidative stress, and the immune system.
In terms of the world's vegetable oil needs, according to PASPI (2016), the world's vegetable oil requirement will reach 340 million tons by 2050. Sources of vegetable oil in the world other than palm oil include rapeseed oil, olive oil, sunflower oil, and soybean oil. Then, based on facts on the ground, for the same land area, oil palm has the highest productivity compared to other sources of vegetable oil.
Thus, palm oil is the most efficient to produce because it is more environmentally friendly and effective in land use. Given that there are many food derivative products that require palm oil, as well as the benefits in terms of nutrition and health, and the fact that palm oil has the highest effectiveness in land use, palm plantations are a source of food security that must be maintained and developed.
In addition to food, palm oil also contributes to the supply of energy. The B-20 mandate was issued by the government in 2015, while biodiesel comes from palm oil processing. In 2019, Indonesia was the largest palm oil producer in the world, which means that the biodiesel mandate provides benefits such as saving on diesel imports and building renewable energy sovereignty and reducing CO2 emissions. Palm oil plantation biomass is also used as a source of bioethanol or a substitute for premium gasoline, but bioethanol itself is still in the development phase.
The liquid waste from the Palm Oil Mill (PKS) can also be processed into biogas (electricity source) through biogas digester tanks, where the production of liquid waste reaches 223 million tons per year, so the potential biogas produced is 3179 million cubic gas/year. Biogas/bioelectricity production has been implemented in several PKSs, such as in several PKSs in the East Kalimantan province. The three renewable energies from palm oil can be substitutes for fossil fuels and as a form of support for national energy resilience.                  
On the other hand, related to human resources and socioeconomic development, palm oil plantations have contributed significantly to developing rural potential and improving the quality of human resources through employment. The development of palm oil plantations naturally involves the local population, so many people have their own palm oil plantations. This is evident from the number of People's Core Plantations (PIR), where the composition from national palm oil plantation businesses is 41% (Ministry of Agriculture, 2015).
The development of the oil palm plantation industry provides a large number of jobs and is a source of income for farmers and also has an impact on the general public. This is because the development of oil palm plantations leads to increased consumption, investment, and exports, creating greater benefits. Economic equity and poverty reduction in rural areas by oil palm plantations through the creation of job opportunities and business activities (SMEs) produce sales of materials such as fertilizers, plantation tools and machinery, pesticides, and food ingredients, of course.
The data in Figure 1 shows that the development of palm oil farmer family businesses has increased drastically, from only 142 thousand in 1990 to over 2 million units in 2016. It is not only oil palm plantation communities but also related SMEs whose owners are non-palm oil. SME growth is also very rapid. The growth of these new businesses is created because of the high demand for food and non-food items in rural areas around the plantations by the very large number of employees from the oil palm plantations. This can increase community income and improve income inequality between those working in oil palm and those who are not. In other words, there is a mutually beneficial and sustainable bond between the community on the oil palm plantations and the community that provides food ingredients, etc., such as livestock farmers, fishermen, etc.
From the above and considering that the palm oil industry is located in rural areas in 190 districts. The economic growth that occurs can be imagined, the presence of oil palm plantations can also reduce unemployment in rural areas because oil palm plantations are an economic sector with labor-intensive technology and are also relatively labor-intensive technology. The logic is that any increase in oil production is only possible if there is an increase in the use of labor as well.
In line with this, according to PASPI (2014) data, palm oil plantations in general are more accommodating of the backgrounds of the workforce available in rural areas so that they can easily absorb labor in the villages. This is in line with the data from the Ministry of Agriculture stating that from 2000, 2010, 2015, and 2016, there has been an increase in the number of workers to 2.1 million, 4.9 million, 8.0 million, and 8.2 million, respectively. this of course has a positive impact on increasing business quality and quantity of the workforce.
Another thing is that oil palm plantations are located in remote, underdeveloped and isolated areas, so palm oil companies will automatically open up roads or access bridges, build agricultural roads, build core plantations and plasma for the people (PIR), build employee housing, education and health facilities, social or public facilities. This argument is in line with the facts obtained by the Ministry of Transmigration and Labor (2014) that up to 2013 at least 50 isolated rural areas have developed into new growth areas and CPO production center bases. Goenadi (2008) that more than 6 million people involved in Indonesia's oil palm plantations have been lifted out of poverty.  In other words, if the economic capacity in the village increases, then both in the form of output, income, job creation not only on oil palm plantations but also in the economy as a whole, such as financial institutions, restaurants and hotels, food processing, and positive impacts in urban areas as well because of the dynamics of the community. So that the development of oil palm is not only directly developing villages but also indirectly developing cities.
It has been very clear that the positive impact of oil palm plantations is not only felt by the people who are directly involved, but also by non-oil palm communities, both in the villages and in the cities. This also shows that the oil palm plantation industry is inclusive.     
In sustainable palm oil development, ISPO (Indonesian Sustainable Palm Oil) has been established & regulated in Regulation of the Minister of Agriculture No. 11/ Regulation of the Minister of Agriculture/ OT.140/3/2015 and RSPO (Rountable Sustainable Palm Oil) as optional. Thus, oil palm plantations have contributed to empowering community economic activities, social responsibility communities, the environment, and supporting food and renewable energy. It is time for Indonesia to realize this comparative advantage and must continue to be supported to accelerate Indonesia towards SDGs.
Source: InfoSawit.com

02

Sep

Why is Tea Grading Important?

There is no universal grading system for tea. For example, in China, tea is usually classified by number, with 1 being the highest grade, followed by [...]

Why is Tea Grading Important?. There is no universal grading system for tea. For example, in China, tea is usually classified by number, with 1 being the highest grade, followed by 7, 8, 9, etc., based on the type of leaf, the shape of the leaf and how specific the manufacturing process has been. In Taiwan and Japan, tea grades range from highest to lowest as follows: Extra Choicest, Choicest, Choice, Finest, Fine, Good Medium, Medium, Good Common, Common, Nubs, down to Dust and Fanning.
The most common grading terms used by tea producers in other parts of the world, like India, Sri Lanka, Africa, Argentina, Indonesia, Malaysia and Europe are:
OP: Orange Pekoe
FOP: Flowery Orange Pekoe
GFOP: Golden Flowery Orange Pekoe
TGFOP: Tippy Golden Flowery Orange Pekoe
TGFOP 1: Tippy Golden Flowery Orange Pekoe One
FTGFOP: Finest Tippy Golden Flowery Orange Pekoe
FTGFOP 1: Finest Tippy Golden Flowery Orange Pekoe one
SFTGFOP: Special Finest Tippy Golden Flowery Orange Pekoe
SFTGFOP 1: Special Finest Tippy Golden Flowery Orange Pekoe 1
For broken teas, the letter “B” is added to the grade, such as BOP (Broken Orange Pekoe), FBOP, GBOP, TGBOP, etc.
For smaller grades used in teabags, the grades fanning and dust are used, such as: OF, OPF, FBOPF, FD, GD
It is important to note that tea grades are determined by the tea producer, and can sometimes vary from one to another. So, requesting a sample prior to purchasing is a good way to ensure that you are getting the grade of tea that you want.
So, bringing it back to the main topic of this article, why is tea grading important? Because learning how to read these acronyms and what they mean tells you something about the tea, and is especially helpful in determining the flavor profile of the tea. Smaller-sized tea leaves produce a stronger flavor than larger whole leaves, so if you are looking for a black tea to compliment your breakfast, you may want to choose a broken tea. However, if you are looking for a more subtle, sweeter tea, a higher grade tea with more tips will do the trick, teas with the letters F or G in them. F stands for flowery, meaning the tea has tips, and G stands for Golden which means there are an even higher amount of tips in the tea.
Tea leaf grades help us understand what the tea will look like, what to expect in terms of body, aroma, sweetness, etc. This information is helpful when buying tea for personal use as well as starting a tea business. Quite often tea is purchased from a catalog, where you will be provided with a list of teas that the vendor carries. The acronyms, terms and grades discussed above will help you get a general idea of what the tea is like, but it’s always best to request a sample and cup the tea before purchasing.
Source: WorldTeaNews.com

Changes in the Board of Commissioners of PT KPBN

27

Aug

Changes in the Board of Commissioners of PT KPBN

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PTP Group Benchmark & Mapping Towards the Global Market

21

Aug

PTP Group Benchmark & Mapping Towards the Global Market

BENCHMARK AND MAPPING OF PTPN GROUP TEA CONDITION AND POSITION COMPARED WITH THOSE OF COMPETITIVE AND SUBSTITUTION PRODUCTS IN THE GLOBAL MARKET. In [...]

PTP Group Benchmark & Mapping Towards the Global Market. BENCHMARK AND MAPPING OF PTPN GROUP TEA CONDITION AND POSITION COMPARED WITH THOSE OF COMPETITIVE AND SUBSTITUTION PRODUCTS IN THE GLOBAL MARKET. In the event, there was a collaboration with export buyers who are members of Jakarta Tea Buyer Association and it was managed by Tea Procurement Division of PT. UNILEVER Indonesia. The event was attended by operational directors of PTPN as tea producers and marketing division heads of each PTPN. In the event, there was a presentation on the condition of competitive (substitution) products of Indonesian tea in export market, from various tea-producing countries. From the short workshop, it is expected that the producers can get a comprehensive and balanced benchmarking and reference in term of price opportunities and quality conditions of competitive teas in the export markets. Therefore, it is expected to provide an objective picture of our current position and anticipation/progress that have to be made if we want to compete and regain the market share of the  bulky tea exports.

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