JOURNAL MONITOR EDITION 32 : PALM OIL INDUSTRY IS NON-EXTRACTIVE INDUSTRY
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Unlike mining industry, oil and gas industry, logging industry or others industries, who extractive and exploiting natural resources, palm oil industry, especially in the plantation produces palm oil through cultivation process. The process also utilizes good management and science and technology innovation to create higher productivity and more sustainable. The factors are limited land, implementation of the moratorium and the demands of global consumers about the enviromental sustainability, are arguments about increased productivity (intensification) being direction for future development of the national palm oil industry in the upstream sector.
The method of increasing productivity (intensification) which can be achieved in three ways, namely: improvement of technical culture (GAP) with adopting Palm Oil 4.0 packet technology; replanting and a combination of both. The result of third method (combination method) is increasing total factor productivity and become a milestone in advancing the palm oil industry in Indonesia and and this is very relevant for today, in line with the implementation of moratorium policy, as well as to maintain Indonesia’s position as largest producer in the world.
Another evidence shows that the palm oil industry is non- extractive industry, namely the development of a downstream industry, which is capable to processing palm oil and its biomaterials into products with higher economic added value. Currently, the palm oil-based downstream pathway is divided into three, namely: oleofood complex, oleochemical complex and biofuel complex. Downstreaming is able to create big multiplier effect to improve economy and increase the welfare of the community. Downstreaming is also a method of demand management to handle excess supply and stocks of palm oil in the global market, so stability price can achieved. In addition, through downstream, which is capable of producing palm oil-based downstream products that have high economic value, efficiency, competitiveness and sustainability, it will also strengthen Indonesia’s position as a global player in the world market. In the future, it is hoped that researchs will produce inovations in palm oil-based products from three downstrea, routes, that can be provide solutions to the problems and needs of the global community.