2024-05-06 06:08:53
[신성장엔진 아시아 뉴7]
Palm oil production in 7.7% of the country’s land area and 40% of farmland
Implementation of mandatory 30% biodiesel use
Indonesia is a major player in the global palm oil industry, ranking first in the world in production and export volume. Palm oil, which is easily cultivated, accounts for about 45% of world vegetable oil production.
According to KOTRA on the 5th, palm farms are operating in 7.7% of Indonesia’s total land area by 2022. Indonesia’s palm oil production amounts to 45.58 million tons, about 2.5 times that of Malaysia, the world’s second largest producer (18.8 million tons). Compared to the total production (approximately 25.3 million tons) of the 2nd to 5th ranked countries (Malaysia, Thailand, Colombia, and Nigeria), Indonesia has 80.2% more.
Since 2014, when President Joko Widodo took office, Indonesia has viewed palm oil as a key resource for national development, and government-led large-scale plantation investments have been made. The area of palm farms gradually increased, accounting for 7.7% of the entire country and 40% of farmland. To expand the palm oil market, the Indonesian government implemented a policy requiring a mandatory 30% blend of biodiesel in diesel used in the transportation sector in 2020.
However, not everything is ‘rosy’ for Indonesia’s palm oil business. This is because the dry season, which is negative for the growth of palm trees, has become longer due to abnormal climate, and additional forest clearing has become impossible due to environmental regulations. The certification process for doing palm oil business locally is also becoming more difficult.
Companies operating here must also pay attention to win-win activities with local residents. Indonesia has been applying a policy of allocating at least 20% of farm land to resident farms since 2007. A common voice in the field is that it is difficult to operate a palm farm without the support of residents through preservation of local ecology and social support (education, medical care, etc.).
In-cheol Park, Vice Chairman of Korindo Group, a Korean company that operates a palm plantation with a planting area of 60,000 ha in Papua Province, Indonesia, said, “The idea is that a company with capital and technology, both of which Indonesia lacks, will make large profits by utilizing Indonesian resources. “If you vaguely enter the Bay, there is a high possibility of failure,” he said. “Now, with many people studying abroad and the government taking steps to regulate imports and exports, the people here know how precious and great assets their country’s (Indonesia’s) resources are. “It is difficult (to succeed) without the principle of coexistence,” he said.
Merauke = Reporter Kim Jae-hyung [email protected]
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2024-05-06 06:08:53