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MISFORTUNE OF INDEPENDENT FARMERS

IS INDIA STILL THE GOAL OF CPO MARKET?

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GOOD ELECTRICITY OF EXPENSIVE BIOMASS

Biswaranjan SenPresident of Roundtable on Sustainable Palm Oil (RSPO)

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Pemimpin Umum/Pemimpin RedaksiIgnatius Ery Kurniawan

Pemimpin UsahaHieronimus Erwin Indrawan

Dewan RedaksiProf. Dr. Bungaran SaragihProf. Dr. Ani SuryaniProf. Dr. Erliza HambaliProf. Dr. Purwiyatno HariyadiAhmad Redzwan, MBAIr. Derom BangunKris HadisoebrotoSeman S. SuhendaF. Rahardi

Redaktur PelaksanaAtep Yulianto Irawan

JurnalisDaniel TampubolonThomas FatmaRidwan Saidi

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Didukung oleh :

EDITORIAL RECORDS

SUSTAINABLE DEVELOPMENT

oil though it spends more investment. The sustainable practices in palm oil plantation have been clearly known after multistakeholders of Roundtable on Sustainable Palm Oil (RSPO) was performed about one decade ago.

In last five years, the planters and businessmen have obeyed the sustainable practices. It is proved, many businessmen and planters have got RSPO certificates though having many struggles and problems when running it.

Now the markets should actually response the achievement of sustainable practices which the planters and businessmen have been running. The markets should actually accept it. If the Certified Sustainable Palm Oil (CSPO) has been highly consumed, this will be indirect incentive to develop sustainable practices.

But the question is, have the markets wholeover the world absorbed CSPO? Then what about the agreement by implementing green house effect and new planting proceduces (NPP)? To know the further informations, dear readers could read it in the Focus in this edition.

Besides discussing about the latest informations in RSPO, we also discuss about the independent farmers which will be in “uncertain condition” in the future, both in the government and in the national palm oil industries. It is predicted, there will be more problems to face. What is that? It can be read in Binoculars.

Having no further words to say, we pleased you, dear readers to read piece by piece what we suggest in this edition. We hope, we could satisfy your informations. Regards, Editorials.

The environmental issues have become the “hottest” ones in the world. These come for the scrambled developmental implementation. For some

sides, the low carbon development or often said as the green economy development becomes the reference to lift up the economy in the future by hoping the world will not be immediately damaged.

Now all industrial sectors, both food, chemicals, forestry and plantation should adopt sustainable cultivation scheme. It becomes the one reference to apply in the low carbon economical development.

For the environmental campaigners, this issue should be running to make the better world and reduce the damages happening. But it does not happen for all of the development which businessmen running it. Implementing sustainable schemes makes the other problems, such as, the slow progress of economy, the minimum employees to hire and the ecnomical slow progress in the world. This obviously shows, the earth should be saved and the development should too.

In palm oil plantation sectors, sustainable scheme is run to enlarge palm

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ADVERTISER INDEXBack Cover 2PT SMART TbkSinar Mas Land Plaza, Tower II, 30th FloorJl. MH Thamrin No. 51, Jakarta 10350Telp : +62-21-5033 8899 (Hunting)Fax : +62-21-5038 9999

Back Cover 3Bumitama Gunajaya Agro GroupJalan Melawai Raya No. 10 Jak-sel 12160Telp : 021-727 98418. Fax. : 021 727 98665

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Run on Page : 36Roundtable on Sustainable Palm Oil (RSPO)Mayapada Tower 9th Floor, JL. JendralSudirman, Kav. 28, Jakarta, 12920Telp : 021 5794 0222Fax. : 021 5794 0223www.rspo.org

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INFO

38 FARMERS INFO

10 FOCUS

53 MIRRORINTEGRATED PALM OIL – COW,

SUPPORT THE NATIONAL MEAT SELF – SUPPORTING

The increasing economy and people’s income make the increasing national demand and the meat consumption.

Contents

Dream of Fuel Subsidy Re - allocation

CPO Price Decreases, Market Transformation Abandoned

The longterm stagnancy of palm oil market in European Union seems to has no end. The reason is that

the accusations get stronger, demand the responsibility of palm oil

producers.

4 EDITORIAL RECORDS

6 LENS - COMMENT

7 PEOPLE

8 EDITORIAL

9 ADVERTORIAL

22 INTERNATIONAL

26 COMMODITY TREND

28 REGULATION

30 ARTICLE

32 AGENDA – FLASH NEWS

34 PRICE INFO

42 MAXI INFO

44 ENVIRONMENT INFO

46 BGA INFO

48 CWE INFO

50 GROWERS INFO

24 PROFILE

20 BINOCULARSMisfortune of Indipendent Farmers

Double Benefits of the Farmers’ Productivity

Biswaranjan SenChairperson RSPO


LENSACOMMENT

KUALA LUMPUR – After being postponed for about one last year, the government of Malaysia is rumored to make the “green” certification scheme for the palm oil companies in the country. It will be effective in 2015. Aq quoted from The Malaysian Insider, Secretary of Commodity and Plantation Industry, Datok Amar Douglas Unggah Embas said, the principles and criteria of Malaysian Sustainable Palm Oil (MSPO) have been arranged, tested and verified in the field.

LONDON – European Union has consultated to Russia, as one country joining World Trade Organization (WTO), about the income tax on the paper product, refrigerator and palm oil. European Union does it as the one procedure to solve the conflicts about the violation which Russia did in its obligation in WTO. As written in Prague Post,Russia did something against the WTO decision, that is, making high taxes from the minimum tax fee which has been in the percentage of a product.

MUMBAI –What government of India tries to solve the dependence of palm oil product import, by enlarging palm oil plantations about 1,03 millions of hectares or same as Connecticut region, United States of America, has been protested by the environmental campaigners. Care2 writes, the campaigners thought, if the government of India really implements it, the wildlife will be threatened, especially the extinction

ones, such as, Benggala tiger, elephants, lions, and the other specific animals in India. The campaigners will make petition to reject the plants by making the public votings.

MINDANAO – Five Malaysian companies have been studying the Autonomous Region for Muslim Midanao (ARMM). It is said, the companies will invest in palm oil plantation sector. Senior Manager of Trade, Malaysia, Har Man Ahmad, as written in Sun Star, every single company will need 5.000 hectares to enlarge palm oil plantation if the investments are agreed.

CROSS RIVER – Before Joint Venture (JV) project of PZ Wilmar, which is about US$ 650 millions to enlarge palm oil plantation in about 26.000 hectares in Cross River State, is done, the investors urge the federal government of Nigeria to make integrated regulations for palm oil commodity, just as same as in the sugar and congcrete products. Business Day writes, the representative of PZ Wilmar, Tunde Oyelola said, the integrated regulations will make the companies joined in JV Wilmar be agressive to enlarge the national palm oil production to be 240 thousands of hectares and hire more than 250 thousands employees in the next five to six years.

IN BRIEF

DIFFERENT PERSPECTIVE ABOUT SUSTAINABLE PRACTICES

The efforts to implement sustainable practices in agriculture and plantation sustainably is often thought as the different

perspective by the outsiders of Indonesia. Unfortunately, the sustainable practices which the national plantations have implemented are the ways to run barrier. But actually implementing sustainable practices means to improve the plantations themselves to be better.

In Indonesia, it is officially agreed, Indonesian Sustainable Palm Oil (ISPO) refers to all regulations in Indonesia. ISPO is one realization to improve itself for itself. So let us support the sustainable policy!

Rosediana Suharto Secretariat Indonesian Sustainable Palm Oil (ISPO) Office in Ministry of AgricultureGedung C Lantai 5Jl. Harsono RM. No. 3, Ragunan-Jakarta 12550

The independent farmers got RSPO certifications, with the President of RSPO Biswaranjan Sen (red tie), and UNEP, represented by Douglas Cress (grey tie). Location: Ballroom Hotel Shangrila, Kuala Lumpur, Malaysia

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Editorial in Chief of InfoSAWIT (seat in the leftmost) talked to the local religious old man.Location:Ketapang, West Kalimantan

became the vehicle to transport the harvest in palm oil plantation in the Dutch era. Location: Kisaran, District of Asahan, North Sumatera

PEOPLEFarmers Should not Produce Palm Oil Fruit only! The man who was born on February

28th, 1958 said, the right corporation concept should be independent and having goals. It should not develop the institution as one place to get power.

Beside that, before making cooperation, there should be good thoughts, such as, is it palm oil cooperation or palm oil farmers cooperation. “What I dream of is that the cooperation should be production one so that the cooperation has its own factory,” he recently said in Jakarta.

To realize the welfare of the farmers, the cooperation should not only produce palm oil fruit only but also the derivative products. “They will not sell fruit only,” he ended his words. q T3

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Struggling to realize the people’s economy, by criticizing the regulations of the government which loss the people is done by few men only. One of them

is Revrisond Baswir, a lecturer in Faculty of Economy and Business, University of Gajah Mada.

Revrisond really understads what makes the unbalanced welfare both for the farmers, employees, and national palm oil industries.

Revrisond said, one thing which postpones the welfare of the people’s plantations is that there is no one institution or board protecting them. Revrisond who is also the commissioner in PT Perkebunan Nusantara XI thought, the cooperation concepts which run are disturbed by the capitalistic concepts.

Revrisond Baswir Commissioner of

PT Perkebunan Nusantara XI

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EDITORIAL

Ignatius Ery KurniawanPemimpin Umum

THE ABANDONED HOMEWORKTHE PROGRESS OF MANY BUSINESSES IS GENERALLY IDENTICAL TO THE EXPANSIONS AND PROFITS. BUT PALM OIL BUSINESS DOES NOT ALWAYS RELATE TO THE PROFITS ONLY BUT IT FOCUSES TO THE SOCIAL AND ENVIRONMENTS.


“Who does not need clean water and fresh air?” Dr. David Suzuki, an environmental campainger said so. Origin from Sakura,

David told, many environmental problems are caused by unresponsiblle industrial developments. He said it when being a keynote address in non profit organization of the 12th Roundtable on Sustainable Palm Oil (RSPO) in Malaysia.

He said in in straight and simple language. He also told some simple stories about life. The stories touched the participants in the summit. After finishing his words, the participants gave applaus to him.

In short, what David said about the business, there should be attentions to the social and the environment. The facts show, business will not run well if the social and environment are not well kept. In the right and good business practices, the two factors should be maintained well.

As part of the economical chain of stock, global palm oil business holds the big role to the progress of the world vegetable oil. The superiority of the productivity of palm oil is much higher than other kinds of vegetable oil and this makes palm oil as the most efficient oil. It needs efficient area and cost production to

produce oil.In addition, the carbon stock chain

from kernel and palm oil makes palm oil is the vastest plantatation used in the food and non food products and consumed by human being.

Old Issues Re-aliveThough the recent social and

environmental issues are debated, the latent danger in palm oil derives from the health issue. Saturated palm oil fat becomes the concern of the health campaigners for human being. Though in 2006, through Secretary of Agriculture, United States of America, which is famously known as FAS USDA had pronounced the newest reseach results, saying that palm oil is good to consume

and is free from saturated oil fat, the facts show, what the government of USA did could not stop the negative accusations of health which was addressed to palm oil commodity. Referring to the European Union regulation recently, every single product of food should have label, where the material of palm oil is got. In the same time, many innovations of new food products, which some European companies producing, have no label of palm oil material.

It means, what the European governments regulate is to oblige palm oil label. Many companies support palm oil as the material. As the results, much pressure in palm oil label is massively done to press the consumption in the European Union markets.

Thus, the progress of palm oil markets in European Union in several last years is stagnant enough though there are some progress in biodiesel industries. In some last years, the use of palm oil in Europe is pressed by non government organizations.

The accusations which they campaigned massively will raise the fear for the businessmen and the consumers to use palm oil.

In the future, the problem in 2014 will keep happening and getting bigger. The big question is, could palm oil industries enlighten it? Or will this be the abandoned homework to re-do?

In the same time, many innovations of new food products, which some European companies producing, have no label of palm oil material.


Informasi lebih lanjut :Hieronimus Erwin

085551115200, [email protected]

[email protected] IklAN koloM

Always Listening. Always Understanding.

Berasuransi sambil Berinvestasiinfo:

Hieronimus Erwin 085551115200, [email protected]


TEROPONGFOCUS

Ignatius Ery Kurniawan

CPO PRICE DECREASESWILL THIS BE THE OPPORTUNITY TO TRANSFORM THE MARKETS? THE LONGTERM STAGNANCY OF PALM OIL MARkETS IN EUROPEAN UNION SEEMS TO HAS NO END. THE REASON IS THAT THE ACCUSATIONS GET STRONGER, DEMAND THE RESPONSIBILITY OF PALM OIL PRODUCERS TO IMPROVE AND PRODUCE SUSTAINABLEPALM OIL.

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What the markets demand seems to be the answer of many problems and public pressure which many non government

organizations protest massively and sporadically. The simultonous pressure brings fundamental changes to the global palm oil businessmen.

Since it was founded in 2004, the non profit organization, Rountable on

Sustainable Palm Oil (RSPO) has been taken as the communication bridge to the global palm oil stakeholders. Most of them, from the upstream to the downstream, traders, consumer goods industries, banks, investors and social and environmental NGO become the members.

The roundtable organization which adopts the same rights and obligation as the model may let the members to suggest

their opinion and wishes, though when voting process would fail the suggestions. The producers always get this because they are lack of supports.

Though it is new one, RSPO cannot be underestimated. In the first breakthrough, the organization published the principles and criteria which were audited by independent institution. And if it passes the audit of RSPO standard, the production could have RSPO logo,


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conflicts which come up recently, especially when the plantations start producing.

Advisor RSPO, Prof. Bungaran Saragih said, RSPO tends to be good for the global palm oil businessmen, including for Indonesian. The former Secretary of Agriculture, RSPO is a voluntary organization which is good to join because palm oil production will be better.

The government of Indonesia, through Ministry of Agriculture has mandatorily regulated Indonesian Sustainable Palm Oil (ISPO). It is important to produce sustainable palm oil which becomes the concent of palm oil stakeholders.

“Palm oil plantation should implement principles and criteria sustainably so that the accusations to the palm oil commodity vanish,” Prof. Bungaran explained.

He continued, the problems reduce the investments in plantations and make some problems too to sell palm oil in international markets.

Vice President II of RSPO, Edi Suhardi also told as what Prof. Bungaran said. He thought, palm oil plantations

that is, Certified Sustainable Palm Oil (CSPO) as the identity of sustainable palm oil.

Chairperson of RSPO, Biswaranjan said, RSPO supports all palm oil stakeholders to produce and use sustainable palm oil. RSPO is non profit organization having the voluntarily members.

“Stop deforestation and make sure all track records of palm oil well become the parts and responsibility of RSPO members,” Biswaranjan emphesized.

Responsibility The Principles and Criteria in RSPO

(P&C RSPO) actually support sustainable palm oil business. Having them, the enlargement of palm oil plantations will increase the productivity. Based on the best and sustainable managerial cultivation, P&C RSPO will emphasize the presence of good environment and social for the people around.

In addition, P&C RSPO seem to redeem the social and environmental

should be supported by the stakeholders involved in this business. He said, Indonesian palm oil plantations are really responsible to enlarge plantation to produce CSPO.

“Palm oil plantations in Indonesia are really responsible to produce sustainable palm oil based on P&C RSPO and ISPO as well,” Edi emphasized it.

Indonesian sustainable palm oil, Edi continued, gets bigger and bigger to fulfill the market demands from the global consumers. It is important to increase the production of CSPO because it will be as same as palm oil companies’ commitment to the human, planet, and profits of the business.

“The supports from the stakeholders are fully hoped to consume produced CSPO,” he said.

Market Transformation If palm oil producers have shown

the evidences of commitment about sustainability, the incorrect position derives from the stock chain of other businesses, such as, downstream, manufacturer industries, and the traders. Though there is some increasing uptake to the CSPO in every single year,


the production of CSPO is not fully absorbed.

On the other hand, the requirements of CSPO production are strengthened by P&C RSPO 2013, including calculating the green hous effect (GHG) emission. For palm oil businessmen enlarging new plantation after November 2005, without making high conservation value (HCV) in the first place (or in the other word, it breaks the criteria 7.3), the plantations could have RSPO certificates and produce CSPO. Board of Governors have approved the HCV compensation procedures. But it will be a concern, that many requirements which are obliged, will press the enlargement of palm oil plantation in the world, including in Indonesia.

So the implemention of sustainable palm oil production should not be lip service anymore, but it should be integrated part of the long term business strategy. It needs discipline and monitor the impacts from the economical, social, and environmental perspectives to the companies. Beside that, it should be supported to expand the responsibility.

The ownership of national palm oil plantations belongs to the farmers, about 45%. They should be the main keys to the success of national palm oil enlargement. If palm oil plantations get more difficult to enlarge, there will be more irresponsible plantations in Indonesia.

It is important too to vocalize nowaday condition of national palm

oil plantations because the people’s plantations become the sources of earning their lives. If they are threatened, there will be massive social conflicts in many regions in Indonesia.

So, the global palm oil stakeholders should pay more attentions. RSPO has accomadate this by making P&C RSPO for palm oil farmers which are adjusted to nowadays conditions and challenges. RSPO understands the important role of palm oil farmers in transforming the markets. Having P&C RSPO, what the farmers produce will have RSPO certification and could be in international trade.

The Price Decreases, Time to Buy CSPO

The production of CSPO has been more than 11 millions of tons. But it is absorbed about 50% only. In every single year, the production of CSPO keeps increasing and needs the right buyers. Based on what InfoSAWIT has traced, the manufacturer, derivative industries, and also the traders want to buy CSPO. But the three of them just buy as minimum as it is required only. As what has been committed to use 100% of physical CSPO in 20155, next year will be the proof to realize the commitment though there are some buyers of CSPO put aside their commitment, that is, buying CSPO in 2020. The implementing of European Union Labelling Policy which will start

in the end of 2014, is hoped to lift up the buying of CSPO and the use of RSPO trademark in the package products which are sold in the EU markets. The policy should explicitly mention, what kind of vegetable oil is used in the products.

It is hoped, this will increase the use of CSPO in the food products and will be the balancer of CSPO production in the next year. On the other hand, the decreasing price of CPO is complained by the businessmen and makes more burden to complete the certification process. “If it is about US$ 400/ton, it will make inconducive business,” one national palm oil businessmen mentioned.

The cost of national palm oil production in every single ton gets more expensive. Referring to the national palm oil plantation emitten, it reaches US$ 350 to US$ 420. This is so contradictive to the production cost in last three years, which reached US$ 300/ton.

Will the decreasing price stimulate the buying CSPO in the markets? Furthermore, it takes several days only to 2015. National palm oil industrial businessmen should do something useful, such as, producing the downstream products of palm oil having RSPO certificates knowing the decreasing price of CPO and the boosting of downstream sectors. This is to have additional values in the domestic markets and get the bigger opportunities ahead.

Stop deforestation and make sure all track records of palm oil well become the parts and responsibility of RSPO members

Biswaranjan SenChairperson Roundtable on Sustainable Palm Oil (RSPO)

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The agreement not to enlarge new plantation in the primer forests and in the areas having supportive HCV since November 2005 is convinced

as the way not to do deforestation and the environmental and ecosystem damage. This will realize sustainable palm oil plantation.

There will be many sides to enlarge palm oil plantations, just as same as the increasing demand of palm oil in the world. Unfortunately, there are some cases that the members of RSPO also enlarged new plantations without having HCV values. This is very potential to damage the HCV. The break of criteria 7.3 will have small

Atep Yulianto Irawan

ENLARGING PALM OIL IN RSPOPRINCIPLES AND CRITERIA 7.3 PROHIBITS TO ENLARGE NEW PLANTATION IN PRIMER FORESTS AND IN ALL AREAS HAVING SUPPORTIVE HIGH CONSERVATION VALUES SINCE 2005. RSPO HAS ARRANGED THE PROCEDURE TO GIVE A COMPENSATION OF HCV TO “PAY” THE BREAk OF THE CRITERIA. THIS IS ALSO TAkEN AS ONE WIN-WIN SOLUTION SO THAT THE PLANTATION COULD HAVE RSPO CERTIFICATION AND PRODUCE CSPO.

the New Planting Procedures. But the mechanism will not be available to the plantation having HCV value and NPP before enlarging plantations.

It is said, the compensation will be useful for the planters or businessmen who want to join as the member of RSPO after 2005. It will be checked about where the plantation area derives from, especially the enlarging area after 2005.

This should be done to find out that some plantations were enlarged after November 2005 which did not run the HCV value and to know the effects in the RSPO certification process. The compensation mechanism could be rehabilitation area in the concession

opportunity to have RSPO certificates, unless the company proposes compensation on the lost HCV. To give the guidelines having compensation, there are some suggestions to make the procedures of HCV compensation. This will be possible that the plantations could have RSPO certification.

The suggestion is taken as the win-win solution for palm oil farmers as the members of RSPO who wants to have RSPO certificates though they have done mistaken by ignoring the HCV values before enlarging new plantations.

The mechanisim of the compensation is known as the substitute on the plantation enlargement which does not implement HCV values and

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plantation or it could be given in other options, such as, substitute the area which has been enlarged or support the conservation in the other places. The company could choose to fund the projects supporting the conservation which the company or the third sides do (Read InfoSAWIT, February 2014 – Compensation Ends in Dollar)

Frankly the compensation has been running for such a long time. According to the information from RSPO, the model of new plantation enlargement by compensation scheme was proposed since August 2011 and after that, there was public consultation held by the stakeholders for the second time on September 2011 to develop the procedure from the compensation scheme.

After three months, or November 2011, the compensation scheme was proposed to the Board of Governor (BoG) RSPO. On Agust 2013, the draft of compensation procedure was in the public consultation for about 60 days.

Finally on May 2014, the compensation procedure was officially announced by the BoG

RSPO or after the meeting in the 11th Compensation Task Force. Having the compensation model, palm oil businessmen or planters should accept it and change the lost HCV potency for enlarging new plantation without making HCV value in the first place.

Bambang Dwi Laksono thought, the NPP process, starting from identifying the HCV, environment and social impact assessment (ESIA) and free prior informed consent (FPIC), until obeying the 7th principle in Responsible Development, should be in one united process.

It is rumored that, if one company has run the NPP process, the complaint could exist. So, Bambang reminded, in the implementation of P & C RSPO, all stakeholders in RSPO should have the same perspectives that P&C RSPO has the same power and nothing is special for the members.

If it is agreed, the NPP process could run well though there may rise some complaints. “I am afraid that there might be complaints,” Bambang said.

It is normal if the Complaint Division RSPO becomes last one to ensure the credibility of the organization and the success of sustainable palm oil plantations. Implementing the compensation scheme could rise complaints. “We are empowering this division to face the complain,” Bambang Dwi said.

Next Step Commodity Manager in Food,

Forest and Water, World Resources Institute (WRI), Anne Rosenbarger admitted, the process of making HCV compensation scheme has been running for some time and in 2014, it has breakthrough.

For example, after BoG RSPO approved the compensation scheme, it was continued by the “Roadshow Compensation,” which were held on June – July 2014, in Jakarta, Kuala Lumpur until Bogota. On September 2014, it was the deadline for all members of RSPO to give the Area Advantage Changes (AAC) evidences, by giving the digital map and the supported details.

In his description in the 12th Roundtable Meeting, Anne

Rosenbarge admitted, in the future, the proof of AAC of palm oil plantation will be done in strategic phases, such as, run advanced study about AAC, increase the methodology in AAC analysis, do vegetative study in Latin America and Africa. “And also the priority to the compensation projects,” she said.

It will make public consultation by describing the revision draft. This will be held on April to May 2015. If they are collected, the proposals and drafts will be sent on August 2015 to BoG to be approved.

Though the process seems to be complicated and rises many complaints, the compensation scheme could be win-win solution to get RSPO certificate and could ensure, RSPO is still credible as the international certification scheme.

TEROPONGFOCUS


Source : FORMISBI, 2014

4 New Palm Oil Enlargement (Oct 2010-July 2014): 107 location.

4 There are about 1,17millions of hectares.

4 HCV identifications was about 164 thousands of hectares (14% of the total area).

New Planting Procedure (NPP)

In the implementation of P&C RSPO, all stakeholders in RSPO should have the same perspective that P&C RSPO has the same power and nothing is special for the members.

Bambang Dwi Laksono Chairman of Indonesian Sustainable Palm Oil Forum

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2011

2012

2014

AgustusCompensation Task Force (CTF) Pertama.

OktoberMeeting CTF ke-2.

JanuaryMeeting the 10th CTF, the final compensation procedure.

MayAnnouncement of compensation scheme.

June -July

SeptemberThe deadline for the companies to report the areal changes voluntarily after November 2005 if they have.

MarchSupported and Agreed by Board of Governor (BoG).Feb – Dec

Meeting 3rd CTF and forth.

SeptemberPublic Consultation, developing the basic and the arrangement of compensation procedures

OctoberMeeting the 2nd CTF .

2013

AugustDraftsof compensation procedure are in the public consultation.

OctoberMeeting the 9th and 10th CTF. The final compensation procedure.

November

Jan–JuneMeeting CTF ended in the 8th.

Source : Roundtable on Sustainable Palm Oil (RSPO), and Pusat Data InfoSAWIT, 2014

THE HISTORY OF COMPENSATION SCHEME

Compensation procedure was presented in the 10th RT.

“CompensationRoadshow”


FOKUSTHE TRACK OF ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO)

August 2003The first Roundtable Meeting in Kuala Lumpur, Malaysia, was attended by 200 participants from 16 countries.

April 2004RSPO was officially made, based on the chapter 60 Swiss Civil Code, and the secretariat is in Kuala Lumpur, Malaysia and the branch office is in Jakarta.

August 200447 organizations signed the Statement of Goal in RSPO .

November 2005r The ratification of principles and criteria

of Roundtable on Sustainable Palm Oil consisted of 8 principles and 39 criteria.

r A special group was made to discuss about the smallholders, that is Smallholders Task Force (STF) .

November 2006r TFS RSPO held the first meeting, presented

by around 100 participannts from all over the world and had many groups.

r The making and adoption of Membership Ethic Code.

r RSPO Indonesian Liasion Office (RILO) in Jakarta.

January 2007r The progress of TFS in the 4th RSPO meeting

upset some sides and they obviously told it in the cordination meeting of Indonesia’s TFS in Jakarta.

r The making of Indonesian TFS and the chairman was Dr AsrilDarussaminfrom Indonesia’s Palm Oil COmmission.

October 2008The publication of Supply Certification Chain System (SCCS) of RSPOin the second version.

November 2007r RSPO announced to run certified sustainable

palm oil.r Certification system was adopted by General

Assembly (GA4) and was officially launched in 5th RT.

January 2008The making of Trace & Trading-T&T as a result study of supply chain model which was adopted in 4th RT (November 2006) to facilitate the Supply Certification Chain System (SCCS) of RSPO

June 2008The launching of second document draft of Supply Stock Chain Certification System (SCCS) of RSPO to consultate.

September 2008The second version of Supply Certification Chain System (SCCS) of RSPO was agreed.

August 2008r The lauching of the first version of Supply

Certification Chain System (SCCS) of RSPO.r National Interpretation P&C Generic for

Indonesia, Malaysia, and Papua New Guinea was agreed.

r The first delivery of CSPO was in Rotterdam.

May 2008The launching of the first document draft in the Supply Certification Chain System (SCCS) of RSPO

October 2007The Review of P&C wasdone by RSPO Criteria Working Group (CWG).


Source : Pusat Data InfoSAWIT, 2014

October 2010r Grievance Panel RSPO responded the

accusation of violance on the RSPO.r The first RSPO certificate was given to

Daabon Group, Colombia.r The Members reached 500.

February 2009Cargill, Inc. was the first company in the world getting RSPO certificate from smallholder that the company managed in South Sumatera,PT Hindoli.

March 2009PT Musim Mas was the first palm oil company in Indonesia getting the RSPO certificate.

July 2009The first revision on the Supply Certification Chain System (SCCS) of RSPO was agreed by Board of Executive, RSPO.

November 2009Document of Supply Certification Chain System (SCCS) of RSPO was reviewed by T&T RSPO and was adopted by EB RSPO.

June 2011RSPO trade mark was introduced to the markets.

September 2011Golden Agri-Resources became the first palm oil company in Asia committing zero deforestation.

August 2011r Agropalma got the first one million hectare

area having certified sustainable palm oil (CSPO) in Brazil.

r 5 millions of ton of global CSPO production or 10% of the total global palm oil production.

November 2011RSPO took Prof. DR. Ir. BungaranSaragihas the new advisor in Indonesia.

November 2012Reviewed the documents of P&C which the General Assembly will decide.

June 2013RSPO members asked five companies reported in the media involved in forest fires in Indonesia to send a digital map of their concession areas in Indonesia.

July 2013r RSPO was ineffective. Some of

environmental activists and palm oil businessmen made new coalition from Consumer Goods Forum, which was calledPalm Oil Innovation Group (POIG), sponsored by Greenpeace.

r Independent farmers AMANAH became the first farmers group got RSPO certification in Indonesia.

October 2013r 18 certification boards got Accreditation

Services International (ASI).r RSPO launched Palm Oil Effect reported in

2014. r RSPO did training programme to redeem

the billateral conflicts and mediation.

November 2014r RSPO certified 11,6 millions of tons of

sustainable palm oil in the world. Indonesia is the biggest RSPO – CSPO producers by contributing it about 50%.

r RSPO eTrace&GreenPalmwas re-activated which connect to the users starting from January 2015.

r Made the Requirement System and Certification Guidance in producing fresh fruit.

May 2012r Indonesia’s plasma farmers having RSPO

certificates reached 54.282 tons which were claimed as the biggest ones in the world.

r 6 millions metric ton CSPO RSPO in the yearly productions.

June 2012r The members of RSPO reached 900

companies in more than 50 countries in the world.

r 61 licences of RSPO Trade Mark were published to the companies in 13 countries whole over the world.

18 www.infosawit.com | INFOSAWIT DECEMBER 201418 www.infosawit.com | INFOSAWIT DECEMBER 2014

The urgency to calculate Green House Gases (GHG) in palm oil has been done for such a long time. But there are lots of pro and contra which

make the carbon emission calculation in palm oil could not be straightly put into the principles and criteria (P&C) RSPO 2007.

But since 2012, the urgency to calculate it gets stronger. RSPO has even developed scheme to calculate emission in palm oil plantation having produced fresh fruit. The tool is called PalmGHG Calculator.

In the P&C RSPO 2013, the carbon emission calculation in palm oil is officially put in the criteria 5.6 (for all plantations having produced fresh fruit) and criteria 7.8 (for new plantations). In the criteria, it is described that carbon stock in all enlargements of plantations or all areas to be plantation should be checked.

Then the criteria also suggest, palm oil to realize low carbon emission by implementing sustainable practices. “The

carbon calculation in the new planting is available, including the identification of carbon stock,” he recently said in Kuala Lumpur

To facilitate the carbon emission calculation, referring to RSPO, the report which is in the criteria 7.8 should have been done since August 2014.

But if the planters or businessmen having new plantation, the requirements in New Planting Procedures (NPP) since January 2015, will be oblidged to notice the principle 7.8. “The documents in principle 7.8 should be given with the NPP report,” Melissa said.

Following The Markets DemandsThough it seems to be difficult to

have carbon emission calculation in P&C 2013, all palm oil planters or businessmen as the members of RSPO should apply the regulation.

Sustainability and Corporate Affair Director, BGA Group, Achmad Hadi Fauzan said, willing or not, all palm oil planters and businessmen should follow the regulation in palm oil trade in the

world. “Every single business should follow the markets,” he recently said in Kuala Lumpur.

This will be giving the easy trade process and the international markets could accept the products. This will realize the sustainable practices and become a notice to the world, that palm oil does not inherit the broken forests to the next generations.

The most trustable commitment in RSPO, Hadi continued, is not to enlarge plantation in the identified high carbon stock (HCS) area, though the problem is being discussed. “And it cannot be calculated by money,” he said.

Head Sustainability, PT Sinar Mas Agro Resources and Technology (SMART) Tbk,. Haskarlianus Pasang said, his side wants to follow the markets demands.

Though it will not be easy to do, what the markets want and demand should be followed. Haskar admitted, following the markets demands will spend lots of investments. But the markets commitments should be known too –

Atep Yulianto Irawan

THE BENEFIT TO REDUCE EMMISSION IN PALM OIL PLANTATIONSTHE WAYS TO REDUCE GREEN HOUSE EFFECTS HAVE BECOME THE WORLD ISSUES TO SOLVE. IT IS AVAILABLE TOO TO ALL MEMBERS OF ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO). THE PROCESS TO CALCULATE CARBON EMISSION IN PALM OIL IS IMPLEMENTED. WHAT ARE THE BENEFITS?

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how much they need. “If there are some markets, we do it,” Haskar said.

Actually reducing carbon emission should not be single responsibility of the developing countries. So the developed countries should have the same responsibility too.

Haskar gave example, the European markets should suggest to buy low emission Certified Sustainable Palm Oil (CSPO). If this happens, there will be good incentive to develop sustainable practices in palm oil plantations to decrease the carbon emission though it doesnot count the benefits yet.

The benefits is important to the continuous process. Benefits could be low emission CSPO which makes it more expensive than tradional palm oil. Haskar mentioned, it needs to think of benefits though it could be done in the same time when planting palm oil, such as, press the emission when enlarging plantation.

It also could be done by Palm Oil Mill Effluent (POME) through methane capture, the transportation in the field and the fertilizers should be efficient. “Composting and reducing chemical fertilizers could be reducing emission too,” Haskar explained.

Achmad Hadi FauzanCorporate Affair & Sustainability Director, BGA Group

2012Developed the adjustment tool, according to P&C RSPO.

2014Revision and the update of Carbon Assesment(based on the accepted proposals and suggestions).

2013r Carbon Assessment tools

was available in the website of RSPO.

r ERWG was made

2015 -2016r Reviewin periodic time based

on the case study, experience and the implementation in the company (ies).

r the communication reached the auditors and the farmers.

Sumber: RSPO, 2014

THE SCHEME OF SKIM GHG

The environmental implementation could sometimes relate to the technology and complex cultivation. But sometimes, the markets forget that reducing emission is not easy to do.

It needs serious implementation, patience, same perspective, lots of technologies and standard investments. That is why, the carbon emission scheme which is recently in the P&C RSPO 2013 should be well calculated so that the planters and the markets get the similar benefits.

The most trustable commitment in RSPO is not to enlarge plantation in the

identified high carbon stock (HCS) area.


BINOCULAR

Atep Yulianto I

MISFOTUNE OF INDIPENDENTFARMERSIT IS NOTED THAT THE INDIPENDENT FARMERS GET BIGGER. BUT THE PLANTATION PRODUCTIVITIES HAVE SOME PROBLEMS. LEGALITY AND THE ENVIRONMENTAL PRACTICES kEEP BEING QUESTIONED.

The people’s plantations get larger in every single year. Referring to the information from Ministry of Agriculture, in 1980, the people’s

plantations were just 6.175 hectares which spreaded in northen Sumatera (Aceh and North Sumatera).

But in 2014, it is predicted that people’s plantations reach 4,5 millions of hectares or about 44% of the total national plantations which spread in 22 provinces in this country.

The fast development was supported by some programmmes since 1980’s era, they were, People Main Program in Transmigration, the Primer Cooperation Credit for Members and the last is the Plantation Revitalization.

But, from the government’s programmes which involved the farmers to develop national palm oil plantations, until 2013, there were only 899.127 hectares only.

The total farmers’ area about 3,5 millions hectares belong to the indipendent farmers’ or the farmers of their own willing to enlarge palm oil.

The ownerships of indipendent farmers have some problems, they are, productivities and legality. In addition, palm oil plantation enlargements are scrambledly done and they evenplant it in the conflict areas.

The areas will be the problems for the government and palm oil industries. The indipendent farmers have the problems

for their lack of knowledge to cultivate palm oil well.

Yearly Plantation Director, Ministry of Agriculture, Herdrajat Natawijaya admitted, the indipendent farmers’ plantation reach 79,6% from the total plantation belonging to the farmers themselves, and this becomes one special challenge to solve.

For example, if it relates to the productivities, independent farmers’ productivities are small in numbers for they plant uncertified or fake seeds. This makes productivities.

In 2012, referring to the Ministry of Agriculture, the average productivities of crude palm oil (CPO)/hectare/year for the farmers themselves just reached 3,2 tons/hectare/year. The numbers were left behind than the productivities produced by big companies which reaching 4,77 tons/hectare/year.

But the numbers of the farmers’ productions could be added by the partnership farmers’ production. They clearly get guidance and helps about the best practices in palm oil plantations. The facts show, independent farmers have much lower productivities.

For example, Sunardi, an indipendent farmer from Musi Banyuasin, South Sumatera admitted, the productivities of the plantation which has been planted since 2005 just reached 20 tons/hectare/year. It is beyond the plasma farmers in his region which reaching 27 – 30 tons/hectare/year. “By 2012, the productivities


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were still low,” he recently said in Palembang.

But Sunardi is good enough for his plantation, together with the other 45 indipendent farmers are asked for by palm oil company in South Sumatera to implement best cultivation practices.

But it is said that Sunardi’s plantations have got RSPO certification in Indipendent farmers scheme. “Now, it produces up to 25 tons/hectare/year,” Sunardi, who is the former chairman of Villagers Cooperation Tani Maju, said.

What Sunardi’s luck could rarely happen to millions of other indipendent farmers because there are lots of them planting palm oil not in standard cultivation.

This happens for their misunderstanding and lack of informations about palm oil. It gets worse by using the fake or uncertified seeds. All of these make the low productivities.

Do you, readers still remember Suswono as the Secretary of Agriculture in 2009? He always said, his side tried to increase people’s palm oil productivities, especially the independent farmers’. But it was a proverb only for there is no realization because the people’s plantations have stucks.

It got worse with the trading of fresh fruit which collectors or wholesalers keep making cheap price of the people’s fruit. The selling and buying of the fruit mechanism were openly done. The indipendent farmers have the perfect misery.

Commisioner of PT Bakrie Sumatera Plantation, Tbk., Soedjai Kartasasmita thought, the increasing people’s plantation should be balanced with some guidances. But Soedjai admitted, the process will take some time (Read InfoSAWIT on June – 2013 Boosting The People’s Productivity).

Soedjai continued, the government could take PT Perkebunan Nusantara (PTPN) which spread in many regions in Indonesia to guide the indipendent farmers in implementing the best and right cultivations.

Unfortunately, in the end era of Suswono as the highest leaderin Ministry of Agriculture, he seemed to be busy by making regulation which is said to be pro people, without any action in the field.

Herdrajat said, there are many regulations, which are said pro people, such as, the Regulation of Plantation which was also revised by Regulation No 39, 2014T he government thought to accomodate the misery in plantation especially for the indipendent farmes. “The regulation is a noble thing to

announce, that is, to increase the welfare of the people and increase the stock exchange,” he said.

Beside that, the government has officially announced the Regulation of Ministry of Agriculture No 98 / 2013 about the guidelines of plantation business licence. Herdrajat said, the regulation accomodates the people to have palm oil cultivation factory.

Then the other is the Regulation of Ministry of Agriculture No 14 / 2013 about the guidelines of Buying fresh fruit but then it is revised in the buying of fresh fruit which calculates about the price of palm oil shell. The government also published the Regulation of Ministry of Agriculture No 105 / 2014 about the integrated palm oil – cow procedures, which is said that the programme runs in 12 provinces.

Herdrajat admitted, all of the regulations will be regulations only if they are not fully done maximally. “There will no reality if it is not maximally implemented. The regulations should be explained, the farmers get aids and incomes to realize the regulations well,” he said.

It should be confessed, all of the regulations should have the same will, enlarging palm oil without damaging the social and environment and should develop the villagers’ economy. It is confessed too that the people’s plantation will keep developing as the needs of the people do too.

If palm oil independent farmers have no guide, they will be misfortune and this will be everlasting problems to solve.

The new government and the change secretaries, in Jokowi – JK reign, the indipendent farmers should have new hopes that the problems have solutions. If this happens, the indipendent farmers’ productivities will not be dreams only. Hopefully.

Composition of National People’s Plantations People’s Plantations : 4.416.000 ha

Plasma : 899.127 ha Independent : 3.516.873 ha

NES, PIR-SUS, PIR-Lokal

PIR-Trans KKPA Plantation Revitalization

Partnership independent

Purely Independent

153.388 ha 362.528 ha 155.211 ha 228.000 ha - -

Source : Ministry of Agriculture, 2014

21www.infosawit.com | INFOSAWIT DECEMBER 2014


INTERNATIONAL

IS INDIA STILL THE GOAL OF CPO MARKET?Atep Yulianto I

BEING IN THE GOOD ECONOMICAL DEVELOPMENTT AND THE INCREASING CONSUMPTION OF VEGETABLE OIL ABOUT 4% PER YEAR, WILL INDIA STILL BE THE IDOL OF NATIONAL CPO EXPORT?

Planted Vegetable Oil Area 26-27 millions of HaAverage Produktivity 1,100 KgProduction of 9 Vegetable oil 32,4 millions oftonsProduction of Wheat and coconut seeds 11,9 millions of tonsTotal Production 44,3 millions of tonsProduction of Cake/meal oil/meal 25-26 millions of tonsProduction of Vegetable Oil 8,20 millions of tonsDemand of Vegetable Oil 17,5 millions of tonsImport of Vegetable Oil 10,4 millions of tons

India’s Vegetable Oil Commodity (2013/2014)

Source: Solvent Extractors’ Association, 2014

(Article 2 – end)

Though Indonesia’s CPO and derivatives export once decreased in the beginning of this year, because of many kinds of trading protection,

such as, the rising import tax for processed palm oil and safeguard duty, if knowing the Indonesia’s CPO and derivative export to India, the progress is still good in every month, which reaching about 6,3%. But this numbers are below than the average progress in last year, 2013 (Read November edition, 2014).

So Indonesia still has the opportunity to strengthen the export to India. According to Solvent Extractors Association, India still has good Growth Development Progress (GDP) which reaching US$ 2,13 billionns, Purchasing Power Parity (PPP) about US$ 5,45 billions and Forex Reserve which reaching US$ 309 billions.

It clearly shows that India has strong basic macro economy.

According to Executive Director of Solvent Extractors Association, BV Mehta, India still needs solvent (vegetable oil), including CPO and derivatives.

In 2013/2014, India just produced about 8,2 millions of tons of solvent. While the solvent demand in its domestic country just reached 17,5 millions of tons. So India needs to do solvent import to cover the lack; about 10,4 millions of tons. For information only, India consumes 14,9 per capita of solvent. “And it grows 4% in every single year,” BV Mehta said it in the 6th Palm Oil Summit in Jakarta, in the

middle of last August. The increasing demands of solvent in

India urges the Bollywood country to do solvent import. Still referring to Solvent Extractors Association, in 2012/2013, India’s solvent import reached 10,38 millions of tons which about US$ 8,2 billions; 80% is CPO and the derivatives, within the volume is about 8,3 millions of tons.

The consumption of vegetable oil in India which refers to GG Patel & Nikhil Research Company (GGNR), in 2012 / 2013 was divided into 4 regions, they are, western India within the population about 26,1% it reached 30,1%.

In the northern India within the population about 24,8%, it reached

23,6%. Eastern India within the population about 28,2%, the consumption reached 26% and the southern India within the population about 20,8%, it reached 20,3%.

BV Mehta said, the trend of the consumption in India is not only known by the increasing consumption in a whole region but it is also known by the change of the way of consumption. In 1970s, most of kinds of vegetable oil were beans, rapeseeds, and wheat oil. Palm oil, soybean and sunflower oil and they were just 4% to consume.

But in 1970s, palm oil, soybean oil, and vegetable oil were mostly used in India because the production could not fulfill the increasing demands in



Period Nov/Oct Total Import CPO

Refined PalmoleinVolume %

2009/10 6.386 5.173 1.213 19,00 2010/11 6.461 5.380 1.081 16,73 2011/12 7.669 6.092 1.577 20,56 2012/13 8.292 6.069 2.223 26,80

The Comparison of Import CPO and Refined Palmolein (000 Tons)


2001/2002 2012/2013Volume % Volume %

Palm Oil 2.944 29,08 8. 292 49,49Soy Oil 2.258 22,30 2.729 15,76

Mustard Oil 1.721 17,00 2.043 11,80Sunflower Oil 309 3,05 1.171 6,76

Cotton Oil 443 4,38 1.130 6,52Groundnut Oil 1.216 12,01 148 0,85

The Change Consumption of Vegetable Oil in India (000 Tons)


the country. “In 11 years, palm oil consumption increased 29% to be 50% and decreased soybean oil and mustard oil,” BV Mehta said.

The increasing consumption also increased the import of CPO and refined palm oilein. The two became the most wanted vegetable oil in India which were imported from Indonesia, Malaysia and Thailand.

Then after 1999, when India made different import taxes between CPO and refined oil, the refinery industries in India get bigger. The regulation was to boost the vegetable downstream industries.

And now, the country has 20 millions of tons capacity per year within the investment reaches US$ 2,5 billions and they are spreading out in many regions, such as, in Kakinada, Kandla, Haldia, JNPT,and Krishnapatinam.

But, for the materials are imported, the refinery industries sometimes decrease which the capacity just reaches 45% to 50%. This condition forces the government to change the import tax structure and the other trade protection regulations, such as, safeguard duty.

Solvent Extractors Association noted, palmoilein refined import activities increased since 2007/2008. It reached 15% of the total CPO and derivatives which were imported in India. The numbers were increasing until 2012/2013. Imported refined palmolein reached 26% of the total imported CPO and derivatives in India.

So, CPO and derivative markets in India still have chances to increase. In addition, the government has the basic, firm economical macro fundamentalism and the increasing vegetable oil consumption.

The average price of CPO which is predicted to be stagnant will make CPO and derivative markets in India will be promising. The needs of vegetable oil reach 17,5 millions of tons while the CPO markets and the derivatives reach 50% or about 8,2 millions of tons.

India’s trade protection happens for the policy which Indonesia has made. Actually, the trade protection could be communicate between the two countries within G to G scheme.

As the result, there will be potential to the markets. This will not make the country get the materials from other country or change the materials with the other kinds of oil. “Hopefully, India

will be fine, then,” General Secretary of Indonesian Palm Oil Businessmen, Joko Supriyono recently said to some journalists in Jakarta.

The high potency of CPO and derivative markets in India make the country be the idol of Indonesia’s CPO

4

Value of ImportRs 50.150 Crores (US$ 8,2 miliar) 4

Import of India’s Vegetable Oil

Total Import10,38 millions of tons (2012/2013)


and derivative markets. The national CPO production in 2014 will be predicted about 33 millions of tons and hopefully the numbers could be absorbed by the market which will increase the price of CPO in the end.


PROFILE

DOUBLE BENEFITS OF

THE FARMERS’ PRODUCTIVITY

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Ignatius Ery Kurniawan

NON PROFIT ORGANIZATION, ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO) NOW HAS NEW LEADER COMING FROM UNILEVER, BISWARANJAN SEN. HE IS NOW AS A CHAIRPERSON AFTER JAN kEES VIS. THE SINGAPOREAN IS BELIEVED TO LEAD RSPO FOR THE NEXT YEARS.


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Biswaranjan, who was doing palm oil derivative industries once told the biggest challange which he worked in, that was, logistics to absorb. It

becomes a boomerang for the sustainable certifed palm oil to grow in the future (Read InfoSAWIT, November 2014).

Logistics becomes a very special attention for palm oil derivative industries because it has big problems to distribute to sustainable palm oil users of RSPO. Sustainable palm oil, he continued, has a very big potency to supply all solvent(vegetabel oil) in the world.

“This is as same as what Unilever commits to absorb CSPO up to 100% in 2020,” he emphasized it. Unilever asked all stakeholders to ensure, the increasing production of sustainable palm oil should be consumed by the global society.

Save The Forests Stop deforestation is one

concentration for the executive in Unilever to develop palm oil industries in the future. It needs to stop damaging the forest to the conservation of the planet and the human life in it.

So, all stakeholders should pay attention to develop these industries from the upstream to downstream sectors through the sustainable principles and

criteria (read: P&C RSPO).The realization of P&C RSPO, he

thought, is part of sustainable palm oil business in the future. Implementing P&C RSPO could be sustainable for palm oil business from the upstream to downstream sectors. “The development of sustainable palm oil will be equivalent with the conservation of the social and environment,” he explained.

It is also important to keep the people, planet, and profits good to have sustainable palm oil business in the future. If they are good, the business will be the big power for palm oil business in the international level.

Increase the Productivity Palm oil productivity will be the

source of the supply in the global markets. Biswaranjan thought, there are about 60 millions of tons of the global production; 30% of them derive from farmers’ plantation. The larger farmers’ plantations could be the big modals for the progress of palm oil business.

He thought, 18 millions of tons deriving from farmers’ palm oil plantations also derive from 9 millions of hectares and the average productions just reach 2 tons/hectare/year. Knowing this, the farmers’ should revitalize their own plantations.

If the farmers’ palm oil plantations are revitalized based on P&C RSPO, the farmers’ could produce 4 tons/hectare/year.

Imagine, the global productions increase 30% without enlarging new plantations,” he explained.

Farmers’ palm oil plantations, he continued, are very potential to support the development of sustainable palm oil supply in the global markets. Having the productions up to 4 tons/hectare/year will add the global supply up to 18 millions of tons CPO or it is equal to 20% of the nowadays global palm oil supply.

That is why, all stakeholders in palm oil business should re-strengthen and increase the productivity of the farmers. “Palm oil farmers are important to develop sustainable palm oil business,” he emphasized.

There will be double benefits which the farmers will get, they are, there will no deforestation and the productions will increase as same as the global society consumptions.


Nama : BiswaranjanSen

Position: Chairperson RSPo

Company:VP Procurement, Chemical Unilever Asia Private limited

There are about 60 millions of tons of the global production; 30% of them derive from farmers’ plantation. The larger farmers’ plantations could be the big modals for the progress of palm oil business.


COMMODITY TREND

GOOD ELECTRICITY OF EXPENSIVE BIOMASSAtep Yulianto I

THE LESS BIOMASS UTILISATION IN PALM OIL PLANTATION WHICH IS USED AS THE MATERIAL OF THE ENERGY URGES THE GOVERNMENT TO MAkE POLICY TO BUY ENERGY BIOMASS – BASE IN EXPENSIVE PRICE.


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It gets stronger to use alternative energy to reduce dependance on fossil energy – base. Besides considering to be environmental, there will be quarantees about

the stock of this alternative energy, such as, energy from waste of forestry, agriculture, palm oil, paper,and other kinds of industries.

To boost the usage of alternative energy, the government also published several kinds of policies.

In the national stock of energy, the government published Regulation of Ministry of Energy and Mineral Resources No 27 / 2014 about the Buying of Power Electricity from

Biomass Power Electricity and the Biogas Power Electricity which are done by State Electricity Company. In the policy, the government took national businessmen to fulfill the electricity which are not stable yet, especially in the remote areas.

But before, what the government did to develop electricity power biogas and biomass – base has been running since 2012 but the privates had lack of investment to supply electricity biomass and biogas on grid.

So, the government revised the policy and made the new one. Regulation of Ministry of Energy and Mineral Resources No 27 / 2014 is aimed to advantage the potency of biomass and biogas to reduce

fuel fossil – base in the remote areas which depend on fuel and the islands having low electricity.

General Director of Electriciy, Ministry of Energy and Mineral Resources, Jarman said, Indonesia really needs electricity power biomass and biogas – base, especially in the outer Java. “Perhaps, there are no other energy outside Java and it is very important to advantage biogass and biomass,” he recently said in Jakarta.

Moreover, there are lots of regions relying on Diesel Electricity Power and this makes more expensive to run. By changing or substituting Diesel Electricity Power to be biomass and biogass, there


will be lots of stock of electricity.This is also as same as the

government’s plan that in 2020, the national electrification ratio could be 99%. “But it is hoped that in 2019, the electrification ratio could be 100%,” he said.

Ministry of Energy and Miniral Resources noted, national biomass which is potential to be electricity reaches 32.654 megawatt – 1.716,6 megawatt has been developed. The electricity power bioenergy (on – grid) by 2013 has reached 90,5 megawatt, while the electricity power bioenergy (off – grid) reached 1.626 megawatt and they area biomass, biogass and city garbage – waste.

General Director of Renewable New Energy and Energy Conversion, Ministry of Energy and Mineral Resources, Rida Mulyana said, it is very potential to develop electricity power biomass – base. In addition, there are lots of biomass in many regions which are not fully advantaged, such as, woods, bamboos, palm oil shells and midribs.

Rida continued, this policy will be a serious action which the government does to boost electricity power biomass and biogas – base. “It very potential and the materials is every where and on the other hand, there are lots of regions having no electricity,” he recently in Jakarta.

Lots of Palm Oil Biomass Palm oil biomass is very potential in

Indonesia. Referring to Agroindustrial Technology Center – BPPT, Indra Budi Susetyo said, palm oil is still focusing to produce crude palm oil (CPO) and palm oil just gives 15% from the weight of the plant.

Most of biomass which palm oil produces is thrown away for having minimal value. When looking back to the CPO production in 2013 which reachingg 28 millions of ton, biomass could produce 200 millions of tons (Read InfoSAWIT, August, 2013 BPPT Info).

Know the potency, Malaysia pays attention to palm oil biomass. The country has projected biomass industry in 2020 and will contribute to the economical progress which is equal to US$ 10 billions.

It clearly shows, biomass should not be taken as waste or garbage having no economical value. The country thought, biomass is potential to boost the economy.

Thailand did too. As the biggest thirdof palm oil producer, Thailand is one step a head than Indonesia. Having high palm oil biomass, Thailand is serious to develop biomass and biogas technology which they are grouped with the numbers of the energy out put, such as, Small Power Producer (SPP), Very Small Power Producer (VSPP), Electricity Generating Authority of Thailand (EGAT) dan Provincial Electricity Authority (PEA).

To fulfill the electricity stock, Thailand has integrated palm oil factories in palm oil plantations in the White Elephant Country. It aims to have indipendency of electricity in every province.

Helmut Körber andHarald Zimmermann from Fa. ECOPLAN Lemgo noted, every single palm oil factory

in Thailand has connected to the state electricity net (PEA). This will be easy for the factory to sell the excessive electricity to the government (Read InfoSAWIT, July 2011 International ).

So what about Indonesia? Of course, what the government has done should have the same agreement to realize the electricity power biomass – base development in whole areas in Indonesia.

Palm oil is widespread in most of provinces in Indonesia and this is very potential to fulfill the national needs electricity power biomass – base.

If this works, beside being environmental, this will be the solution so that the national electricity stock will not on – off. Hopefully.

PLTBm 1. Rp 1.150,00/kWh, if it is connected to the middle voltage net.

2. Rp 1.500,00/kWh, if it is connected tolow voltage net.

PLTBg 1. Rp 1.050,00/kWh, if it is connected to middle voltage net.

2. Rp 1.400,00/kWh, if it is connected tolow voltage net.

The Price of Electricity from Excess Power

PLTBm 1. Rp 1.150,00/kWh X F, if it is connected tomiddle voltage net.

2. Rp 1.500,00/kWh X F, if it is connected to low voltage net.

PLTBg 1. Rp 1.050,00/kWh X F, if it is connected to middle voltage net.

2. Rp 1.400,00/kWh X F, if it is connected to low voltage net.

The Selling Price of Electricity Power (10 MW in capacity)

Source: Regulation of Ministry of Energy and Mineral Resources No. 27 / 2014

Source: Regulation of Ministry of Energy and Mineral Resources No. 27 / 2014

Note:F is the incentive factor which is same as State Electricity Company buys in the location. In Java, F=1,00; Sumatera, F=1,15; Sulawesi, F= 1,25; Kalimantan, F= 1,30; Bali, Bangka Belitung and Lombok, F= 1,50; Riau, Papua and other islands, F=1,60.



ISPO REGULATION IS URGED TO BE REVISED

REGULATION

Atep Yulianto I

THE END OF 2014 WILL BE THE LIMIT TO INDONESIAN SUSTAINABLE PALM OIL (ISPO) CERTIFICATE. IN THE ISPO PROCESS, IT NEEDS MORE TIME. SO THE REGULATION SHOULD BE REVISED TO HAVE LEGITIMATION.


in 2011, it was the crucial year for the national palm oil planters and businessmen. Beside being one century of palm oil planted in Indonesia, it became an evidence

for the government to implement sustainable palm oil practices.

Through the Regulation of Ministry of Agriculture No. 19/Permentan/OT.140/3/2011 about the guidance of Indonesian Sustainable Palm Oil, the government committed to enlarge palm oil plantations without damaging the environment and social.

The policy was thought different from Roundtable on Sustainable Palm Oil (RSPO). ISPO is belived to have the strong and fully law enforcement for it is mandatory.

In the beginning of the regulation, it was taken as the seriousness of government to vanish the accusations

saying, palm oil is the main factor of the broken forest and peatland.

The regulation as one serious commitment should be completed in the end of this year, 2014. Unfortunately, the regulation becomes a boomerang. Referring to the Ministry of Agriculture, per 2012, palm oil companies whose plantations have been known should complete ISPO. But there were 1.212 companies.

By 2014, the companies having ISPO certificates reach 64 companies only. The numbers, of course, are beyond imagination, especially the companies having third class plantation from the local Agency of Plantation.

The government through Directorate General of Plantation, by the end of 2014 is still optimists that ISPO could fully done. The facts say no. That is why ISPO needs to revised as soon as possibel.

Referring to the Ministry of Agriculture No 19 / 2011, in the clausul 3, it notes that the companies have the limited time, December 31st, 2014 and the business should refer to the regulation.

If it refers to the regulation, ISPO should have finished by this month. But knowing what is happening, the companies will get the impacts for they will have sanctions because of having no ISPO certificates by the deadline.

But, General Manager Agriculture Food and Fisheries, PT Mutuagung Lestari, Taufic Margani, the ISPO process keeps running in the field, and hundreds of palm oil companies are doing the process and they do not depend on the ISPO which is not revised. “The audit process in ISPO is running still,” he said through a phone call.

Furthermore, Taufik Margani continued, his side doesnot count on


No Name of Company Planted Area CPO Production

1. PT. Musim Mas (Pangkalan Lesung) 12.959,00 71.727,00

2. PT. Musim Mas (Batang Kulim) 10.919,00 71.511,00

3. PT. Laguna Mandiri 12.999,00 33.581,60

4. PT. Swadaya Andika 11.187,70 38.099,00

5. PT. Hindoli 18.186,20 144.696,16

6. PT. Sari Aditya Loka 15.479,45 24.684,85

7. PT. Ivomas Tunggal (Samsam) 9.720,86 60.631,00

8. PT. Gunung Sejahtera Dua Indah 8.946,00 22.718,33

9. PT. Gunung Sejahtera Ibu Pertiwi 6.979,00 37.306,03

10. PT Perkebunan Nusantara V 6.735,00 18.160,00

11. PT Paripurna Swakarsa 14.638,05 64.389,83

12. PT PP London Sumatra Indonesia, Tbk. (Turangie)

8.070,91 45.146,43

13. PT Sawit Sumbermas Sarana 18.810,02 116.089,78

14. PT Kencana Sawit Indonesia 7.728,42 48.589,57

15. PT. Kimia Tirta Utama 6.526,57 51.360,00

16. PT. Ivomas Tunggal (Tanjung) 14.705,77 51.481,41

17. PT Inti Indosawit Subur 21.128,00 135.933,00

18. PT Kalimantan Sawit Kusuma 6.815,37 33.646,11

19 PT Meridan Sejati Surya Plantation 9.654,32 48.807,91

20. PT Swakarsa Sinar Sentosa 15.282,00 62.637,69

21. PT Agro Mitra Madani/Agrowiyana 4.417,00 91.100,00

22. PT Steelindo Wahana Perkasa 13.493,00 77.636,00

23. PT Patiware 6.060,00 19.478,00

24. PT Ivomas Tunggal (PKS Libo – Sinar Mas Group)

14.705,77 82.524,33

25. PT Agrowiratama (Musim Mas Group) 5.954,08 36.335,84

26. PT Eka Dura Indonesia (PT Astra Agro Lestari, Tbk.)

9.597,70 49.253,00

27. PT Tania Selatan (Wilmar Group) 3.627,37 15.268,00

28. PT Arindo Tri Sejahtera 14.218,19 22.294,59

29. PT Gersindo Minang Plantation (Wilmar Group)

5.118,95 29.535,80

30. PT Buana Karya Bhakti 3.195,60 14.344,00

31. PT Gawi Bahandep Sawit Mekar 13.551,37 64.716,00

32. PT Pangkatan Indonesia 6.964,00 35.880,70

33. PT Pangkatan Indonesia 6.964,00 35.880,70

34. PT Aek Tarum (Sampoerna Agro Group) 4.893,00 51.762,91

35. PT Gunung Tua Abadi (Sampoerna Agro Group)

4.195,45 15.117,40

36. PT Telaga Hikmah (Sampoerna Agro Group)

14.296,23 72.274,73

37. PT SMART Tbk (Padang Halaban) 14.963,89 80.208,51

38. PT Surya Intisari Raya 4.357,91 42.392,24

39 PT Sari Lembah Subur (PT Astra Agro Lestari, Tbk.)

7.832,02 42.776,00

40. PT United Kingdom Indonesia Plantation 2.873,97 16.820,32

TOTAL 378.061,74 2.106.030,93

Companies Having ISPO Certificates by January 2014

the revision of the regulation saying the deadline in this year. His sides just give the ISPO legitimation to the government. “That is government’s business. We just support ISPO to be realized,” he said.

Though the process keeps running, there will be law issues if ISPO is not revised before January 2015.

The ISPO process will directly be fail because all national palm oil companies should have ISPO adjustment.There should be law enforcement in sustainable practices which make ISPO will be far away from uncertainty in law.

Until now, it is said, the end of ISPO 2014 is the limit to register ISPO implementation for all national palm oil companies. But it was said literally by the ISPO stakeholders. The law should be firm and straight so that ISPO has the strong and firm legitimation.

Not Fully Supported The slow progress of sustainable

practices in ISPO is suspected for the unsupported policies by national palm oil stakeholders.

Secretary of ISPO, Rosediana Suharto said, ISPO should be supported by palm oil stakeholders. But unfortunately, the environnmental non government organizations (NGOs) seems to be ambiguous.

ISPO which is running for such a long time has lack of suggestions from NGO. Rosediana continued, ISPO is made to improve itself to have undamaged palm oil plantations.

Rosediana admitted, the less support from the country to establish the regulation is suspected to be the other reason why ISPO is so slow to be finished, such as, the legality of palm oil plantations has not fully done. “This country is so weak to make the regulation,” she said in a ceremony in Jakarta, last October.

But her sides also asked all stakeholders to help ISPO to be better and to be admited as one serious policy to have sustainable palm oil plantation. Secretariat ISPO has run training for 500 auditors so the ISPO process is not left behind. “We are trying to find the solution on this problems,” Rosediana said.

Determining the policy direction should need commitment, sacrifice, time and support. ISPO should too. It should have sustainable policy in Indonesia’s style, it should be admitted, though there are some minors to be improved.

30 www.infosawit.com | INFOSAWIT EDISI DESEMBER 2014

WASHINGTON - Multinational vegetable oil producer company, IOI Loders Croklaan has committed to cultivate palm oil commodity with no deforestation. This adds, that 75% of palm oil companies commits to produce palm oil without damaging the forests. Wilmar International, Golden Agri – Resources, Cargil and Bunge have done it before. As written in Grist, Gleen Hurowitz as the representative of non government organization, Forest Heroes, who lead the negotiation with IOI Croklaan mentioned, IOI Croklaan has its responsibility to the company without damaging the forest and the customers have too so that they should not buy the products from the irrresponsible sides.

NEW ZEALAND – The cow farmers changed the supplement food for their pets by corn flour and palm oil kernel to increase veterinary production. Michael Brooks, Executive Director of NZ Manufacturers Association, as written in The New Zealandexplained, the change is to increase the cow milk demand as the second biggest demand after hens.

NEW YORK – IKEA promised to vanish palm oil material if it derives from the forest and wetland, starting from 2017. As quoted from Brand Channel IKEA claimed, “when it runs within a responsibility, palm oil could be sustainable material”. In its productions, IKEA used palm oil as the material to make candle, food products and rotan furniture.

NEW ZEALAND – Anglo – Swiz multinational company running palm oil commodity, Glencore Grains got fines about US$ 67.500 for releasing bad smell from the kernel oil which is storaged or kept in Taranaki port. The smell annoyed the people around Plymouth, the sides of Moturoa. As written in Radion New Zeland, Glencore claimed to relocate the storage unit.

KUALA LUMPUR – In the third general memorial 2014, Dr. Tan Sri SM which titles “Palm Oil Industries and the Challenges” which was officially opened by Ministry of Plantation Industry and Commodity, Malaysia, Datuk Seri Douglas Unggah Embass, as quoted from New Straits Times, it explained, Malaysian palm oil sectors increased about 18 percents and made US% 48 billions (RM 161 billions) to the export income in last one year.

IN BRIEF

PLANTERS’ COMPETITION

Maruli Pardamean*

THE FAST DEVELOPMENT OF NATIONAL PALM OIL PLANTATIONS WILL NEED AND HIRE EMPLOYEES WITHIN MAXIMAL SkILLS. THIS OBVIOUSLY SHOWS, PLANTERS SHOULD HAVE GOOD COMPETENCE.

GLobalization (free trade) means that every single company, including palm oil company should increase the competitiveness by increasing

the efficiency and human and natural resources productivities.

Employees or in the other words, human, is the important asset of the company. They will determine the progress or the decrease of the company. They hold the control on every business process and become the successful keys to achieve the targets.

Competency To achieve the optimal works, the

company should have competent persons in their skills. The competency should be increased for it directly or indirectly will effect the competency of the company to get the targets.

It is important and strategic to get human resources, to get the education and profession training. The two should be increased and done by every side.

From their own individu, the competitiveness in the work will get tighter in every day too. It cannot be denied, professionlism becomes the absolute requirements and conditions which someone should have. It needs certification to get standard professionalism.

(Article 1 of 2)

Certification means, someone gets professional requirements and admissions which one institution gives to someone as a professional employee. Certification should also guarantee the human resource to be competent in doing his works or duty well.

Governmental Regulation No 31 / 2006 about the National Work Training System means “Standard competency becomes the reference to develop training programme within the training competence – base and the graduates have fulfilled all the required standard competency. So it needs a competent certificates by testing them which is done by indipendent profession certification board or agency”.

Competence itself means ability or competency of someone to have knowledge and skills. Competence means the competency which is shown to apply the knowledge and skills.

Serification of CompetencyCertification of competency is needed

to assure the users or customers that he having the certificate is a professional. Certification is like someone has two drivers, one has driving licence, but the other one does not. Of course, we will be confident to him having licence more than him having no licence. At least, we know that he has been studying, tested

31 www.infosawit.com | INFOSAWIT EDISI DESEMBER 2014 31www.infosawit.com | INFOSAWIT DECEMBER 2014

ARTICLE

*Author and Palm Oil Practitioner

Dok

. Inf

oSAW

IT

and verified by one institution which is “worth” to give driving licence, that is, police institution.

Work competency certification is a process to give competent certificate which is systimatically and objectively done through the competency tests which refer to the national or international work standard competency.

Indonesian National Work Competence Standard is a series of work ability and skill which cover knowledges, skills, and relevant attitudes with the work and position which are made according to the available regulations.

Profession Certification National Board

The work of competency certification is done by Profession Certification National Board (PCNB). This board is an indipendent board which the government makes based on the Government Regulation No 23 / 2004 and also based on the Regulation No 13 / 2003 about employee.

The making of PCNB is part of preparing the qualified employees within two basic principles, they are, the first, preparing the employees is based on the demand driver; the second, the training process is a place to prepare the employees which is done by the competency based training (CBT).

This board having the authority as the authority personel certification to do professional competency certification for the employees or workers. This board also works to ensure the competence quality and admission of the employees in the professional in Indonesia. This board is also responsible to the President.

To run the work competency certification, PCNB should give licence to the Profession Certification Board which fulfills the requirements to run it. The requirement and the procedure of giving licence is determined by PCNB.

Profession Certification BoardPCB is prepared by the work

committee which is formed by or with

related industrial associations. The work committe consists of a chairman, secretary and some members. The committee should derive from industry, profession associations, technical instance and experts.

There are some series of procedures which should be done to make a board (institution, organization, or others) to have profession certification licence (PCL). The procedures could be the founding of PCL, the making of essence, the pointing of assessors (tester who also gets the official licence from PCNB), the making of testing, the pointing of testing plase and the ways to give certification.

The making of work competency certification which is done by PCL is based on the available regulation which international board admits, such as, profession associations, or private and government PCB,wich the board is nationally and internationally admitted without having licence to do certification, but in the real fact, the PCL coordinates with PCNB.


AGENDA & LINTAS

Greenpeace: Environmental Commitment from the Planters and Businessmen Good!

Wilmar Focuses to Educate the Farmers

Urge The Indipendent Farmers to Implement Sustainable Practices

JAKARTA – Palm oil plantation businessmen are insisted to really develop the commodity sustainably. There should be no deforestation, protect the wetland, pay attention to the environment and reduce the green house effects.

For these commitments, non government organization, Greenpeace thought, in some last years, palm oil companies have been serious to implement the sustainable palm oil practices. “In last several months, the companies commit. We see, the trend is increasing,” Solution Coordinator of Forest Campaign, Greenpeace Indonesia, Achmad Saleh Suhada recently said in Jakarta.

But, he continued, Greenpeace will keep monitoring the consistency and the commitments from the companies promising to implement sustainable practices. He emphasized, this is not the organization’s work only. “Once again, this is not our work only, but also the other related institutions,” he said. q T3

JAKARTA – EHS & Sustainability Wilmar Group Plantation, Alfat Agus Salim said, his side commits in running palm oil plantation business and asks all stakeholders, such as, supplier in Wilmar, and the small farmers, especially the plasma farmers, to implement sustainable practices.

Wilmar is focussing to educate the plasma farmers to join the sustainable stock of chain. “Wilmar has communicate and consultate with the farmers, give them technical aids and support them to get the obidience achievement to what Wilmar has regulated,” he recently said in Jakarta.

Furthermore, Alfat said, his side really supports the government and the people who want to help plasma farmers to get the goal. It is proven, Wilmar’s plasma farmers getting ISPO certification have been four. “There are 11 farmers groups which are in partnership with Wilmar and four of them got the ISPO certificates,” he said. q T3

JAKARTA – The global markets insist palm oil plantation companies to implement sustainable principles and criteria and palm oil farmers too. So palm oil farmers union (POFU) tries their best to implement it to its members which is about 38 thousands members.

Coordinator of POFU, Mansuetos Darto Alsyanu said, POFU has identified its members by providing data to ensure to make comfort. “There are lots of companies which are doubtful that the fruits derive from forest area,” he recently said in Jakarta.

Beside that, to make the companies comfort of buying fruits from the members of POFU, his side has mapped them and their plantations to ensure that the members are not in the problem in producing fruit.

So, Darto continued, in implementing sustainable principle, his side has trained and prepared 300 experts in eight districts of POFU location. “This is the way to train them, how to plant palm oil well, how to cultivate and increase the production,” he explained. q T3

National Biodiesel Conference & ExpoTempat : Fort Worth, Texas, USANet - Link : http:// www .biodieselconference.org

19 - 22 January 2015

9th Annual Iowa Renewable Fuels SummitTempat : The Meadows Conference

Center, Iowa, USANet - Link : http://www.iowarfa.com/

27 January 2015

20th Annual Ethanol Conference (NEC): Going GlobalTempat : Grapevine, Texas, USANet – Link : http:// www.

nationalethanolconference.com/

18 – 20 February 2015

Fuels of the Future 2015: 12th International Conference on BiofuelsTempat : Berlin, Jerman Net - Link : http://www.fuels-of- the-future.com/

19 - 20 January 2015

2014 2nd International Conference on Agriculture and Biotechnology (ICABT 2014) Tempat : Phuket, ThailandNet - Link : http://www.icabt.org/

27 - 28 December 2014

Maghreb Food Exhibition (MAFEX) 2014Tempat : Casalanca, MoroccoNet - Link : http://www.ifw-expo.com/

11 – 14 December 2014

19 January 2015Palm Oil Economic Review & Outlook Seminar 2015Tempat : The Royale Chulan, Kuala

LumpurNet - Link : http://mpob.gov.my/

Oilseed Congress Europe/MENATempat : Barcelona, SpainNet - Link : http://www.niop.org/

9 – 10 February 2015

JAKARTA – Indonesia’s palm oil industries have run and developed partnership pattern between the government, companies, and farmers. This is useful to increase the welfare of the farmers.

According to Director of PT Wilmar Nabati Indonesia, Darwin Indigo, the partnership pattern is very important and could become the role model for the other countries, such

as, Africa and South America. Many countries have asked about the partnership pattern which is run in Indonesia, such as, Myanmar. The country thought, Indonesia has succeeded to implement the plasma partnership,” he recently said in Jakarta.

That is why he hoped, all sides; the government, companies and farmers, could cooperate to achive better partnership pattern. The government in special, should totally support this programme by giving the easiness to get the areal status. This will reduce the conflicts happening between the companies and the farmers.

The next, Darwin continued, the government should make regulations which support the programme and if the regulations are not run, “The companies and the farmers should be punished or get the sanctions,” he said. q T3

Plasma – Main Programme Becomes the Role Model in Other Countries

The Village Plays Its Big Role to the Palm Oil Farmers

Perusahaan Harus Bisa Rangkul Petani Swadaya A Company Should be In Partnership with the Indipendent Farmers

JAKARTA – The expert team of Government Regulation in Village, Sutoro Eko thought, the village has its big role to the life of the villagers and palm oil farmers themselves.

The farmers union and cooperation also become two crucial powers and become the fortress for palm oil farmers. “I just say, village could be the fortress and the base of the life of palm oil farmers,” he recently said in Jakarta.

The planting tradition could be every thing though the tradition is very weak because the commodity has the crucial issue. “But it is a micro issue in the village and will be forgotten, marginal,” he said. q T3

JAKARTA – General Manager Asian Agri, Freddy Widjaya said, one future challenge of big companies in Indonesia is that to be in partnership with the indipendent farmers.

He thought, the indipendent farmers are the very big potencies in the progress of this industry. But they have the wrong perception on the presence of the company. “We should take them as partners. We come to help them by educating them, but they thought, we are going to take over their plantations,” he recently said in Jakarta. q T3

ENGLEWOOD – Innospec Inc. (NASDAQ:IOSP), a chemical and personal care specialty announced the achievement which the company gets, that is, multi – site RSPO Mass Balance (MB) certificate. Innospec has become the regular member of RSPO since August 2013. Quoted from World Press Online, Innospec commits to absorb certified CPO through the scheme of Mass Balance (MB) to fulfill the needs of stock until 2015. But as part of sustainable development, the company could get the targets far beyond its schedule.

SEOUL – GS Caltex, a South Korean palm oil company succeeded to develop biobutanol massively - the renewable clean fuel for the future. The company plans to produce the first production. Korea IT Times reported, the company succeeded to develop biobutanol from the wastes of agricultural water, woods and palm oil stalk. This is the first fuel wood – base in the world.

SELANGOR – 30 companies from Selangor get much loss for the water crisis in Selangor, Malaysia. Based on Malaysia Investment Development Association (MIDA), the big companies, such as Nestle, Monin Asia and Panasonic should lost the benefits because of the operational activities. Quoted from My Sinchew, the big lost happens in the food, rubber, oleochemical, electricity, tourism, small and middle industries.

GHANA – Three Ghana’s companies were selected to be the winners in the event “Power Africa Off – Grid Energy Challenge” which was sponsored by General Electric (GE) a United States of Aid Development for Africa (USADF) and United States of Aid International Development (USAID). Ghana Web wrote, one of the three winners, that is, Kumasi Institute of Tropical Agriculture (KITA) which is a non government organization in Ghana defeats 19 other participants from Liberia, Nigeria, Tanzania, Ethiopia, and Kenya. KITA made 20 kilowat biomass gasifyer using palm oil cultivation wastes as the materials.

LONDON – A recent study mentioned, the effect of biomass burning in the South Asia region polluted the air about 25 – 60% to the increasing poisonous gas, such as, monocyde carbon and nitrogen dioxcide. International Business Times wrote, biomass burning had been done for about 138 until 350 teragram (Tg) in northern and eastern in India. It polluted one fourth of the monocide carbon emission and nitrogen dioxide in the area.

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35 www.infosawit.com | INFOSAWIT DECEMBER 2014 35 www.infosawit.com | INFOSAWIT EDISI SEPTEMBER 2014



INFO PETANIFARMERS INFO

Asep Ade HerawanDept Head of Livestock Manager PT. Bio Nusantara Teknologi

Integrated Palm Oil – Cow

SUPPORT THE NATIONAL MEAT SELF - SUPPORTINGTHE INCREASING ECONOMY AND PEOPLE’S INCOME MAkE THE INCREASING NATIONAL DEMAND AND THE MEAT CONSUMPTION. PALM OIL IS THOUGHT TO BE ONE SOLUTION TO ACHIEVE THE NATIONAL MEAT SELF SUPPORTING BECAUSE OF ITS DEFICITS.

Beef or cow is producing meat which is expensive to sell. Cow could fulfill many kinds of human’s need, especially the food, meat, fertilizers,

skin, bones, and others.Meat has its big role to fulfill animal

nutrition. Cow is one kind of animal eating grass. So it collects low nutrient which is changed to be high nutrient and the mankind eats it in the form of meat.

Indonesia which is about more than 250 millions is still lack of meat. So in 2011, this country should do import about 500 thousands of cow.

The large numbers of cow import happened for the cow livestocks in Indonesia are still dominated by the simple system of breeding. The people have limited modal to the food which one crucial things to make the livestock successful.

Now, there are lots of kinds of seeds used to the animal food. This effects the competition between the human food and the animals’. To produce more animals, there should be other alternative potential food which is cheap and easy to get.

One way to prepare the animal foos is by advantaging the area as optimal as it could. Beside that, advantaging the waste and the side product of plantation and agriculture commodities, both in the integration and diversification, should be done too. These will give additional values for the farmers, breeders and the

plantations themselves.Palm oil plantations are potential to

develop ruminants livestock, especially the cow. Palm oil plantations develop in South Asia, including in Indonesia. There were 8,1 millions of hectares palm oil plantations in 2011.

Starting from the ideas and many

informations, studies from many sides, both the businessmen, seminars, workshops and researches, management of PT. Bio Nusantara Teknologi, owned by the big family of Sutan Takdir Alisjahbana decides to implement the palm oil plantation – integrated system in palm oil cultivation.

Palm oil fiber is one kind of waste from palm oil industry which is used to be litter or floor of a cage or shed. Advantaging fiber could make the cow comfort, warm when being rain and cool when being

in drought. Beside that, fiber is like “pampers” for the cow because it absorb the urine or feses.

38


Palm oil – cow integrated cultivation might make profits in the future. The increasing economy and the people’s income also urge the demand of meat, including meat of cows.

On the other hand the national cow population still could not balance to the increasing cow cuts which makes the increasing demand than the supply or provision.

This conditions clearly show that there will be operational benefits for palm oil – cow integrated cultivation. The breeders will not prepare the food because palm oil plantation is the source of greeny and concentrated food and save the electricity for the operational of cow. The greeny food could be leaves and midrib of palm oil tree. The concentrate food could be solid and palm oilcake.

The livestock could provide the increasing demand of cow/beef and the feces could be processed into the organic fertilizer.

The potential greeny food for cow in palm oil area is available all the time.

Green Garden is among palm oil trees intercropping plantation is being

develop by Veterinay Unit in PT. Bio Nusantara Teknologi

Fermented food from the waste of plantation and palm oil industries are being developed and tested by Veterinary Unit of in PT. Bio Nusantara Teknologi

Palm Oil Business Integrated Scheme

39

Area Land Application and the fermentation process of organic

fertilizer which the material is from the waste of palm oil cultivation industry.

40

INFO PETANIINFO PETANIINFO PETANIFARMERS INFO

This disease

attacks the fruit, stalk and green leaves

in cocoa. The fruit could be attacked in the

nipple, mature and raw fruit. Its symptoms could

be black spots in the fruits, then the fruits get wet and

rot in the endIt is soul born disease or

derives from the soil which is easily spread out through the rain drops, directly contacts among the good and bad fruits and the contacts among the fruits and the soil. Beside that, the disease could spread out with the help of snail, ants, rats, and others.

How to Control? The rot disease could be controlled by some combinations, such as, the use of durabel clon of the rot fruit. The cutting

of the cope tree and the crown,doing sanitation, that is, cutting of the rotten fruit in the tree, and the spray by using RevusOpti with the RidomilGoldMZ could vanish the disease. The spray should be done in every two weeks to prevent the spreading of the disease. The cutting of the rotten fruit should be buried into the deeper soil.

Vascular Strike Dieback (VSD) Disease

Octobasidiumtheobromae fungus makes this disease. It spreads out very easily with the help of wind. VSD disease attacks the young and raw leaves and after 3 -4 months, the symptoms will appear in the old or mature leaves. It is easy to know the attack of this disease, that is, seeing the green yellowish spots in the leaves and they are getting to fall which make the leaves vanish. It can be seen in the

picture below.

The specific symptoms

could be easily known,

is that, there are three brown spots

in the former of the leave stalks. If we cut the

IF SOMEONE ONE WANTS TO CULTIVATE COCOA, HE NEEDS TO kNOW THE WEEDS AND DISEASE OF THIS ONE NATIONAL MAINSTAY COMMODITY. WHAT ARE THEY? HERE ARE THE DESCRIPTIONS.

THE CRUCIAL DISEASEOF COCOA

Didik TricahyonoCampaign Crop, Specialty Manager PT Syngenta Indonesia

T he rain falls in almost regions in Indonsesia’s cocoa

plantations. This should be aware of because there will be much disease too.The disease could be significantly harmful for the cocoa plantations. In addition, in October to December, it is the second harvest in cocoa. The disease could damage the harvest. The factors effecting the disease are the moisture and heavy rain.

The lack of treatment, especially the cutting of the cope tree and the branch of cocoa, will ease the attack of disease. There are two kinds of crucial disease in cocoa tree which should be prevented, they are, rotten disease, and VSD disease. These two kinds of disease will be a lost for the farmers because of the fast spread and the decreasing harvest. To control them, we should know the symptoms and how to vanish.

The Cocoa Rotten Fruit Cocoa rotten fruit is caused by the

Phytohthorapalmifora, a kind of fungus.


QUIZ

Send your answers, complete address and phone numbers to [email protected]

Right answers will be ... and three main winners will get intersting souvernir;

TRAVELLING BAG from PT Syngenta Indonesia

What are kinds of diseases attacking cocoa?

The Winners of Quiz Syngenta on October 2014No Nama Perusahaan

1. Edwin L A AMS Ganda Group 2. Benarlyn A. Raharja Teladan Prima Group3. Diana Handayanti PT. Manakarra Unggul Lestari

stalk into two parts horizontally, there will be brown line in the bad stalk. Beside that, the skin of the stalk will get rugged but the good stalk will always be fine.

How to Control VSD Disease ? One thing to do is that, do

sanitation by cutting the bad stalk until the good part and should add 30cm from the good part below it. Cut the crown and the cope tree to reduce the moisture aroung the tree. To increase the good plants, it should have fertilizer so the hara is fulfilled to the plants.

The other control is by spraying the plants using Amistar Top, the spray should be running twice a month. If they are done, cocoa will be better, more green and has wide leaves and of course, it

is free from VSF disease.Now the seeds of

cocoa is less than the seeds in the market demands. This makes the price will be relatively good for the farmers. Let us treat cocoa plant well to get more maximal result. Have a nice try.

Foto

-foto

Dok

.

PT. Syngenta IndonesiaPerkantoran Hijau Arkadia, Tower C, 9th Floor.

Jl. T.B. Simatupang Kav.88, Jakarta 12520, IndonesiaTel: (+62-21) 304 21000 (Hunting) Fax: (+62-21) 7883 6333

PT. Syngenta IndonesiaPerkantoran Hijau Arkadia, Tower C, 9th Floor.

Jl. T.B. Simatupang Kav.88, Jakarta 12520, IndonesiaTel: (+62-21) 304 21000 (Hunting) Fax: (+62-21) 7883 6333

42

INFO PETANIMAKSI INFO

HEALTH OIL AND EMULCIFIER FROM CPO Team MAKSI*

There are large numbers of downstream industries – crude palm oil (CPO) base in Indonesia according to Ministries of Industry’s

data in last 2 – 3 years. Crude Palm Oil (CPO).

There are 154 kinds of CPO derivative products and they are increasing three times than the kinds in 2011 which were 54 ones. There are lots of investments during 2012 – 2014, which reaching US$ 2,7 billions (from the website of Ministry of Industry, October 10th, 2014).

On the other hand, about half of Indonesia’s palm oil productions have been exported in raw material. The

exported products, such as, Diacil Glicerol (DAG) and Monoacil Glycerol (MAG) have more expensive selling price. The CPO price on June 2014, according to Indonesian Palm Oil Businessmen Association is about US$ 840 – 880 per metric ton. While enova oil, one of DAG brand product is about US$ 8,45/kg or it is about ten time folds than CPO.

Oil fulfilling of DAG could be useful as the health oil for its capability to prevent the fat which accumulates in the body and could repair the collesterol ratio in the blood cerum. Beside that, DAG and MAG could function as the emulcifiers which most of industries need. In general, emulcifier is one palm

oil derivative product which has the most highest value (Picture 1).

Palm oil processing industries have not developed yet in Indonesia because there is no specific lipase enzym 1,3 – glyceril to produce DAG. There are lots of researches in CPO bioconverse using enzym is still relying on the imported lipase. Enzym lipase is expensive enough, about 25 millions rupiah per kilogram.

Balai Penelitian Bioteknologi Perkebunan Indonesia has potential local fungi isolate which is potential to produce lipase, that is, Rhizopus sp. This could produce more DAG than the imported lipase. The extraction lipase has also been gottenin the laboratory.

The result of the research in 2011/2012 showed,glycerolbrokeCPO. This process is called glycerolization. It means thatlipase enzym catalized in the laboratory scale produced that DAG was about 55% and the highest DAG reached 70,29%.

This DAG which is produced by CPO and which has high free fat acid is up to 10%. The free fat acid old CPO is categorized as the off grade. Fresh CPO glycerolization within the low free fat acid (less than 3%) produces DAG about 20 – 28%.

The result of the research showed, CPO with the high free fat acid is good to be used as the materials in DAG oil.

DiasilGlycerol Production (DAG)

Istim

ewa

THE MASSIVE NATIONAL PRODUCTIONS ARE POTENTIAL TO PRODUCE DIACIL GLYCEROL (DAG). IT IS GOOD TO PRODUCE OIL AND HEALTH EMULCIFIER.

The prototype of DAG from old CPO with the free fat acid (left) from the new CPO with the mieddle fat acid (middle) and cooking oil (right).


* Tri Panji, Suharyanto, Irma Kresnawati, AsminiBudiani, andDarmonoTaniwiryono.

Beside that, the lipase enzym produced 90g from 4 L substate of CPO with the high activity, that was, 223 µmol FFA/g or 223 unit/g substrate/minute.

The usage of lipase enzym which is mobilezed in the zeolit could increase the glycerolization process to be efficient by using the immobilized enzym up to five time folds and make the increasing DAG. Immobilized enzym is also good to enlarge semi pilot scale glycerolization in the batch reactor within 50L volume and this could produce 5 kg of DAG oil per batch within the maximum production in 24 hours per batch. The mixture of the reactor could still be used into the re-glycerolization reaction up to five times.

By knowing the technology, off grade CPO is potential to be conversed to be good oil and ready to sell more expensively. The study of pilot scale production and the market researches should be done too to know the economical study in producing DAG as the downstream product and of course, this is worth to be called innovative product.

The successful research in producing DAG is potential to be developed to increase the additional value of CPO, while the successful research in lipase could support the development of many products CPO – base.

Additional Values from CPO Derivative Products

Dag Level from the Glyceloyzation of CPO and Four Variation of Time Incubation

Glycerolization process in the rotary shakerwith the temperature of incubation was 270C (the room temperature) for about 18 hours in 2,5 L of glycerolisis

Analyst of DAG with KLT in the semi pilot glycerolization scale

TAG

DAG

MAG

FFA


INFO LINGKUNGANENVIRONMENT INFO

LIFE CYCLE ASSESSMENT

Article 4 - End

By Tom Theis

Interpretation of LCA

The interpretation step of LCA occurs throughout the analysis. As noted above, issues related to the rationale for conducting the LCA, defining the system and setting its boundaries, identifying data needs, sources, and quality, and choosing

functional units, allocation procedures, and appropriate impact categories must all be addressed as the LCA unfolds. There are essentially two formal reasons for conducting an LCA: (a) identification of “hot spots” where material and/or energy use and waste emissions, both quantity and type, are greatest so that efforts can be focused on improving the product chain; and (b) comparison of results between and among other LCAs in order to gain insight into the preferable product, service, process, or pathway. In both cases, there are cautions that apply to the interpretation of results.

AssumptionsTypically a variety of assumption must be made in order to carry

out the LCA. Sometimes these are minor, for example, exclusion of elements of the study that clearly have no appreciable impact on the results, and sometimes more critical, for example choosing one set of system boundaries over another. These must be explicitly stated, and final results should be interpreted in light of assumptions made.

Data Quality, Uncertainty, and SensitivityIn the course of conducting an LCA it is usually the case that

a variety of data sources will be used. In some cases these may be from the full-scale operation of a process, in others the source is from a small scale or even laboratory scale, in still other cases it may be necessary to simulate information from literature sources. Such heterogeneity inevitably leads to uncertainty in the final results; there are several statistical methods that can be applied to take these into account. An important aspect of the completed LCA is the degree of sensitivity the results display when key variables are perturbed. Highly sensitive steps in the chain have a greater need to narrow uncertainties before drawing conclusions with confidence.

IncommensurabilitySometimes LCA impact categories, such as those shown in Table

Common Impact Categories and Their References (Table 2), overlap in the sense that the same pollutant may contribute to more than one category. For instance, if a given assessment comes up with high scores for both aquatic toxicity and human toxicity from, say, pesticide

use then one might be justified in using both of these categories to draw conclusions and make choices based on LCA results. However, more typically elevated scores are found for categories that are not directly comparable. For instance, the extraction, refining, and use of petroleum generate a high score for global warming (due to GHG release), while the product chain for the biofuel ethanol has a high score for eutrophication (due to nitrogen release during the farming stage). Which problem is worse –climate change or coastal hypoxia? Society may well choose a course of action that favors one direction over another, but in this case the main value of the LCA is to identify the tradeoffs and inform us of the consequences, not tell us which course is “correct.”

Risk Evaluation and RegulationOne of the inherent limits to LCA is its use for assessing risk.

Risk assessment and management, as described in the Modules The Evolution of Environmental Policy in the United States23 and Modern Environmental Management24, is a formal process that quantifies risks for a known population in a specific location exposed to a specific chemical for a defined period of time. It generates risk values in terms of the probability of a known consequence due to a sequence of events that are directly comparable, and upon which decisions on water, land, and air quality standards and their violation can be and are made. LCA is a method for evaluating the impacts of wastes on human health and the environment from the point of view of the product/service chain rather than a particular population. It can be used to identify the sources of contamination and general impacts on the environment –a sort of “where to look” guide for regulation, but its direct use in the environmental regulatory process has been, to date, rather limited. One application for LCA that has been suggested for regulatory use is for assessing the impacts of biofuel mandates on land use practices, in the United States and other regions, however no regulatory standards for land use have yet been proposed.

44

Human Health (cancer) kg Benzene eq/unit

Human Health (non-cancer) LC50 eq from exposure modeling

Global Climate Change Kg CO2 eq/unit

Eutrophication Kg Nitrogen eq/unit

EcotoxicityAquatic, Terrestrial Toxicity Kg 2,4 D eq/unitLC50 eq from exposure modeling

Acidification Kg H+/unit

Smog Formation Kg Ethane eq/unit

Stratospheric Ozone Depletion Kg CFC-11 eq/unit

Common Impact Categories and Their References

23 ”The Evolution of Environmental Policy in the United States –Chapter Introduction” <http://cnx.org/content/m42118/latest/>24 ”Modern Environmental Management -Chapter Introduction” <http://cnx.org/content/m41573/latest/>25http://greet.es.anl.gov/26 http://www.pre.nl/content/simapro-lca-software27 http://www.epa.gov/nrmrl/std/sab/traci/28 http://www.eiolca.net/

environment.EIO-LCA has several advantages in comparison with the

“bottom-up” approach. There is no need to be concerned with defining system boundaries, i.e. the “boundary” is the entire economy of the United States (or a sub-region), which includes all material and energy inputs and outputs. The data used in EIO-LCA are, for the most part, already collected by the federal government thereby obviating the tedium of the inventory stage. Finally, software models are readily available to carry out the analysis. While a “bottom-up” LCA may take months or even years to complete, EIO-LCA typically takes a few hours.

Of course, at this level of aggregation much information is lost, especially on how the system actually functions. For example, the “energy” sector of the economy includes electricity generated, but doesn’t distinguish among nuclear, fossil, or renewable sources. And if one is concerned with the functional reasons for a particular result, EIO-LCA will be of limited use. Often the “bottom-up” and EIO-LCA approaches are combined (a “hybrid” approach).

ConclusionsThe life cycle approach is a useful way to come to an

understanding of the material and energy needed to make a product or deliver a service, see where wastes are generated, and estimate the subsequent impacts that these wastes may have on the environment. It is a good way to improve a product chain, articulate tradeoffs, and make comparisons among alternative processes and products. In these contexts LCA facilitates decision making by managers, designers, and other stakeholders. Most importantly, LCA is a way of framing policy options in a comprehensive and systematic way.

References Bohlmann, G. M. (2004). Biodegradable packaging life cycle assessment. Environmental Progress, 23(4), 49-78. doi: 10.1002/ep.10053. Frosch, R.& Gallopoulos, N. (1989). Strategies for Manufacturing. Scientific American, 261(3), 144-152. Landis, A. E. (2007). Environmental and Economic Impacts of Biobased Production. Unpublisheddoctoral dissertation, University of Illinois at Chicago. Patel, M., Crank, M., Dornburg, V., Hermann, B., Roes, L., Huesling, B., et al. (2006, September). Medium and long term opportunities and risks of the biotechnological production of bulk chemicals fromrenewable resources –The potential of white biotechnology: The BREW Project . Utrecht University, Netherlands: European Commission’s GROWTH Programme (DG Research). U.S. Environmental Protection Agency. (2006). Life cycle assessment: Principles and practice. (EPA Publication No. EPA/600/R-06/060). Systems Analysis Branch, National Risk Management Research Laboratory. Cincinnati, Ohio. http://www.epa.gov/nrmrl/lcaccess/pdfs/600r06060.pdf. Vink, E. T. H., Rábagno, K.R., Glassner, D.A., & Gruber, P.R. (2003). Applications of life cycle assessment to NatureWorks polylactide (PLA) production. Polymer Degradation and Stability 80(3), 403- 419. doi: 10.1016/S0141-3910(02)00372-5.

Tools for Conducting LCAFortunately a number of databases and tools, in the form of

computer software, are available to assist in carrying out LCAs. This is an active area of development; in this section a few of the more well-known and widely used tools are described.

The Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation Model (GREET)

GREET25 is a spreadsheet-based database developed by Argonne National Laboratory that links energy use to emissions on a life cycle basis. Early versions were limited to greenhouse gases, but as the model has been refined many other types of contaminants have been added. Although it has been widely used for comparing transportation and fuel options (hence its title), GREET has been used for many other applications that have a significant energy component, including agriculture, material and product development, and strategies for recycling.

SimaProSimaPro26 was developed by PRé Consultants in the Netherlands.

It is a process-based tool for analyzing products and systems for their energy usage and environmental impacts over their life cycle. It contains a number of databases for simulating processes, performing inventories, assembling products and systems, analyzing results, and assessing life cycle impacts, and features modules for performing uncertainty and sensitivity analyses.

Tool for the Reduction and Assessment of Chemical and Other Environmental Impacts (TRACI)

TRACI27 is a tool for performing life cycle impact analysis developed by the U.S. Environmental Protection Agency. It uses inventory data as input information to perform a “mid-point” impact analysis using categories such as those shown in Table Common Impact Categories and Their References. A midpoint analysis assesses impact based upon results at a common point in the risk chain, for example, global warming potential, because subsequent end-point impact assessments require several assumptions and value choices that often differ from case to case. The values for the various impact categories given in Table Common Impact Categories and Their References are mid-point references.

Economic Input Output Life Cycle Assessment (EIO-LCA)EIO-LCA (http://www.eiolca.net/28) takes a different approach

to the development of a life cycle assessment. In comparison with the somewhat complicated “bottom-up” approach described above, EIO-LCA uses a more aggregated, matrix-based approach in which the economy is composed of several hundred ”sectors,” each linked to the other through a series of factors. EIO was first developed in the 1950s by Wassily Leontief (1905-1999) who was awarded a Nobel Prize in economics for his work. EIO has proven to be a very useful tool for national and regional economic planning. The developers of EIO-LCA then linked the main economic model to a series of environmental impacts. EIO-LCA uses economic measures to perturb the system; for example, if a factory seeks to increase its output by ten percent, then the aggregated inputs across the economy will have to increase by ten percent. Of course some of the inputs from some sectors will increase very little if at all, while others will bear the major brunt of the increase in output by increasing input. In EIO-LCA, part of the new outputs will be increased contaminant loads to the



LSM AND LGI COMPANY REMAIN THE PROGRAM REBOESASION ON CONSERVATION LANDAFTER MAkING MANY kINDS OF CONSERVATIONS, SUCH AS, BREEDING ORANG UTAN AND PLANTING WOODS IN THE CONSERVATION AREA IN THE EARLY OF 2014, BGA GROUP RE-PLANTING WOODS IN THE RED LAND AND kUNTILANAk VILLAGE IN kETAPANG. THE ACTIVITY WAS FULL OF LOCAL CULTURE AND PARTICIPATION OF LOVING SURROUNDINGS FOR THE CHILDREN.

Conservation Program BGA Group Realized

BGA INFO

Asthe committment and responsibility of the company to the neighborhood, BGA Group re-planting woods in the conservation area of PT. Ladang Sawit Mas (LSM) and PT. Lestari Gemilang Intisawit (LGI) since the early 2014 by planting

wood trees.Head of Corporate Affair, BGA Group, Kamsen Saragih,

the planting of the trees is over the first target which was 10 thousands of trees. “There are 18.211 wood trees from many kinds of trees PT. LSM has planted, they are, Sengon Sungkai Mahoni, Trembesi, Dadap, and other kinds. It is beyond our target,” Kamsen recently said in Nanga Tayap.

PT. LGI did the same thing which planting trees since June 2014. There are 4.236 trees. “We also nurse the trees for they are important to conserve the environment,” Kemsen said.

Planting trees is one continous work which General Manager BGA Group, Lim Sian Choo said that it will keep going in phase in every subindustry.

Planting Productive Fruit Trees to Greening.They are different kinds of trees which are planted for the

focus of the activity is more to plant fruit trees for reforestation. “PT LMS targets to plant 20.020 fruit trees and PT LGI does 10.500 trees,” Regional Head PT LSM and PT LGI, Endrik Dermawan said when giving his speech.

Endrik thought, planting productive trees could prevent

illegal logging and we hope, it could give benefits to the people around. “By planting fruit trees, we hope the people get the benefits from the fruits and keep the trees well.” Endrik mentioned.

Referring to the information of the company, the fruit trees which are planted are manggo, rambutan, matoa, durian, petai and others. In PT LGI there are 200 trees which consist of 100 durian and 100 petai trees. They are all planted in the conservation area in Kuntilanak Hill about 8 hectares and in PT LSM, there are 3.550 fruit trees in the sides of river about 55 hectares.

Developing the greening programme, BGA Group has also done nursery programme in the fruit trees and wood trees. “We ourselves do cultivate the trees in the area to make sure that the quality of the fruits is the best. Now there are 40 thousands kinds of seeds we cultivate,” Kamsen Saragih mentioned.

PT. LSM Askedd the People to Keep the Environment Since in the Early Age

Photos by Doc. of. BG

A Group

Head Corporate Affair BGA in West Kalimantan together with the childrenState Elementary School 19 Red Land after doing reforestation.

46


PT LSM also asked the state elementary school 19 in Red Land to join the greening programme. This activity was welcomed by the school. It seems, the people do understand, forestration which PT. LSM does is for their own good and the environmental conservation. It is as same as what a student read a poem. The poem has deep understanding which is not to the company itself but the people in general. “PT. LSM enlarge the plantation, don’t forget to keep the nature good. PT. LSM keeps the environments good, the people are absolutely glad”. The quotes from the poem.

Head of Village Nanga Tayap, Anwar said, the greening programme give one good example directly to the people. “BGA through PT. LSM has really contributes to the people by conserving the environment,” he said when giving his speech.

Head of Forestry Agency, Ketapang, really appreciated the positive activity which also the government runs still, that is, to enlarge forestation in the forest area.

One NGO, Friends of Borneo (FOB), who also attended the greening ceremony also really saluted what BGA Group has done. “This is very positive and as same as what we do, make the people aware of the environmental conservation in the first place. BGA Group is the company doing this and with the other one in Ketapang,” Indra from FOB said.

PT. LGI Respects the Local Culture The planting tree ceremony in PT. LGI

was different. Eko Budi, as the Area Controller in PT. LGI said, his side intentionally run the local culture ceremony. “We want this activity is not a ceremony to plant trees only but also is to conserve the local culture,” he said.

The ceremony was opened by the welcome dance of dayak, and the dancers cut the bamboo which was lead by the elder of the local region. One of many elders, Kadarusno also appreciated the local culture in the ceremony. “Beside re-functioning the forest to the people, I am happy to that BGA Group really appreciates our local culture,” he said in his speech.

What InfoSAWIT watched, the conservation areas in PT LSM and PT LGI in greening

programme are well to grow. The greening programme asked the people and the children to appreciate local culture and would give the positive value. Environmental responsibility is not done by company (ies) only, but also the people.

Now the side of the river in Red Land and Kuntilanak Hill will be more green and productive to give fruits, which are hoped to give additional value to the local people.

Head Corporate Affair BGA in West Kalimantan together with the childrenanak

State Elementary School 19 Red Land after doing reforestation.

Conservation of BGA Group subindustry, PT LGI was centered in Kuntilanak Hill

Region Head PT LSM, EndrikDarmawandi areal penanamanpohonpenghijauan.

47

“We also nurse the trees for they are important to conserve the environment,”


Sylvia Madusari, Toto Suryanto, April Kurniawan(Article 2 – end)

CHOOSING THE PLANT MEDIA BETWEEN TOP SOIL AND DUNG

Advantaging Bamboo as the Media to Plant MucunaBracteataSeeds

USING TOP SOIL AND DUNG AS THE MEDIA TO PLANT MUCUNA BRACTEATA IN THE BAMBOO WILL HAVE EACH BENEFITS AND LOSSES. THE DUNG WILL HELP TO VEGETATIVELY GROW WHILE THE POWER OF THE SPROUT OF MUCUNA BRACTEATA WILL BE MORE IF USING TOP SOIL AS THE MEDIA.

CWE INFO

I n 5 days after planted (DAP) on the average, Mucuna bracteata develops more fertile in the top soil media than in dung media. It the top soil, it is about 1,5 cm or three times higher than in the dung which reaching 0,5 cm.

But in 10 DAP, there is only slight different height in both media. In top soil, it becomes 2,38cm or it grows 0,88cm while in the dung media, it drastically grows to be 2,35cm or about 1,85cm to grow. In 10 DAP observation, the average height of the plant in the dung media grows twice more than it in the top soil media. In 15 DAP Mucuna bracteata is higher in dung media than it in the top soil one. In top soil, it is 1,59cm in height so the everage plant is 3,97cm while in dung media, the average plant is 2,22cm so the average height becomes 4,57cm.

Based on the growth of the stalk diameter, it grows 1 mm in top soil media in 5 DAP, while in dung media, it grows 2 mm. It may happen for the quality of Mucuna bracteata seed. In 10 DAP, the diameter of the stalk in top soil media grows 0,95 mm while in dung media, it grows only 1,96mm or it slowly grows, only about 0,4 mm. The change happens for the new seed is growing and from the seed, there is some seed which does not grow well. In the last observation, 15 DAP the average growth of the stalk in top soil is as same as in 10 DAP, that is, 1,95mm. It happens for there is new seed and it also does not grow well which effects the average growth of the stalk and which also has stagnancy. But it does not happen in the Mucuna bracteata in dung media. The diameter of the stalk becomes 2,43mm or it increases 0,47mm.

Based on the data, top soil and dung media in the observation 5 DAP, there is no leaf perfectly open. The leaf is still close and purple so it is not calculated yet. The leaf clearly shows up in 10 DAP. In top soil, the leaves are 1,71 while in dung media, the leaves are 1,69. Its difference is 0,02. In the last observation – 15 DAP, the leaves in dung media grow drastically which reaching 5 leaves, or they are over than the leaves in top

soil media which reaching 4,09 leaves.In 5 DAP, Mucuna bracteata in top soil is higher that it in

dung media. In 10 DAP, it is still higher in top soil than it in the dung media. But it decreases in height. In 15 DAP, it is higher in dung media than it in top soil media.

According to Laude dan Tambing (2010), the hara which is in the dung meida could help the increasing of the height.

In the diameter of the stalk, in top soil media, it is better than it in dung media. It happens starting from the first observation to the last one. It may happen for the seed genotype. Plant media and genotype effect the height of the plant, numbers of leaves, and the diameter of the stalk (Suketi and Imanda, 2011). While the development of the leaves in 5 DAP both in top soil and dung media has shown, the leaves are not perfectly open. In 10 DAP, the development is seen and the numbers of leaves in top

The Observation of MucunaBracteata


soil are more than the leaves in dung media. But the leaves are slightly different. In 15 DAP, in top soil and dung media, the numbers of the leaves are increasingly twice more than the last observation. In the dung media, the numbers of leaves are more than them in the top soil media.

The development of Mucuna bracteata seeds in dung media increases when it is in 15 DAP. It may happen for the top soil media has the decreasing material of hara. Using top soil has some losses, such as, the media gets faster to be solid, bad aeration, weight of seed is higher and lack of hara for certain plant (Hendramono, 1988). Beside that, in 15 DAP, the organic material in dung media is perfectly raveled which makes the plant could absorb it. Sutedjo (2002) said, the usage of dung should pay attention to ravel the material in it so the hara is availabe to grow and develop the plant, such as, 1 – 2 weeks in the hen dung before it is planted. This is supported by the result study of the reseach of Laude and Tambing (2010) saying that the hen dung doze will not really effect the average of union leaves 1 weak(s) after planted (WAP) but it really effects in the height of the plant 2 – 6 WAP.

E-mail: [email protected] published in Journal of Citra WidyaEdukasi, Vol. V, No.2, November 2013

BIBLIOGRAPHY Bawolye. 2006. Bahan organik dan Pupuk Kandang. IRRI Rice Knowledge Bank. Philipina.Hendramono. 1988. Meningkatakan Pertumbuhan Dan Mutu Bibit Acacia Mangium

Wild Dengan Menggunakan berbagai Macam Media. Buletin Penelitian Hutan No. 502 : 17-26

Laude, S. dan Tambing, Y. 2010. Pertumbuhan Dan Hasil Bawang Daun (Allium fistulosum L.) Pada Berbagai Dosis Pupuk Kandang Ayam. J. Agroland 17 (2) : 144 – 148

Prawirosukarto, S. et al. 2005. Tanaman Penutup Tanah Dan Gulma Pada Tanaman Kelapa Sawit. Pusat Penelitian Kelapa Sawit. Medan

Putri, A.I. 2008. Pengaruh Media Organik Terhadap Indeks Mutu Bibit Cendana. Jurnal Pemuliaan Tanaman Hutan vol. 21 no. 1

Putri, K.P. dan Nurhasybi. 2010. Pengaruh Jenis Media Organik Terhadap Kualitas Bibit Takir (Duabanga moluccana). Jurnal Penelitian Hutan Tanaman Vol. 7 No. 3: 141-146

Saputra, B. A. 2008. Pengaruh Media Pembibitan dari Pupuk Kandang. Skripsi. Jurusan Budidaya Pertanian. Univeristas Jember.

Suketi, K. dan Nandya Imanda. 2011. Prosiding Seminar Nasional PERHORTI: Pengaruh Jenis Media Tanam Terhadap Pertumbuhan Bibit Pepaya Genotipe IPB 3,

IPB 4, Dan IPB 9 Sulistyowati, C. Any. 1997. Pengawetan Bambu. Wacana No. 6Sutedjo, M.M. 2002. Pupuk Dan Cara Pemupukan. Rineka Cipta. Jakarta

Diameter Batang Mucuna BracteataTreatment Age of Plant

5 DAP 10 DAP 15 DAP

Top soilAverage diameter of the stalk (cm) 1 1,95 1,95

DungAverage diameter of the stalk (cm) 2 1,96 2,43

Numbers of Leaves of MucunaBracteata

Treatment Age of Plant5 DAP 10 DAP 15 DAP

Top soilThe average leaves (cm) - 1,71 4,09

DungThe average leaves (cm) - 1,69 4,28

Observation of Diameter of the Stalk of MucunaBracteata

Observation of the height of MucunaBracteata

The comparison of the height, diameter of stalk and the numbers of leaves of Mucunabracteata


GROWERS INFO


CSPONEEDS CONSUMERSAS THE MAINSTAY COMMODITY IN THE WORLD, PALM OIL kEEPS BECOMING THE PRIMADONA IN THE GLOBAL MARkETS. THE CONSUMERS USING IT ARE ALSO ACTIVE IN DETERMINING THE DIRECTIONS AND THE DEVELOPMENT OF THIS VEGETABLE BUSINESS. THE CONSUMERS DEMAND AND GIVE INITIATIVES TO STRENGTHEN THE PRESENCE OF PALM OIL IN THE GLOBAL MARkETS.

Actually, palm oil as part of vegetabe oil in the world has been known for hundreds of years ago. Palm oil is consumed as the food and

non food materials deriving from a very simple process.

Palm oil is produced from palm oil tree which is easily found in the African forest. As the forest plantation, the people around advantage palm oil by processing it simple or in housing process for their needs.

The food process using palm oil is very special because the nutrition and the vitamins give the good things to the consumers. It is not questioned anymore, the African claims, they are free from using glasses for consuming vitamin A from the betta caroten of palm oil that they consume.

Now palm oil is known by the people in the world. It is not only processed in the house, but also it becomes the industry agrobusiness – base in the world. Most of the products which the global society consumed use palm oil as the material.

For being fond of it, the global market demands on palm oil get larger. The derivative industries of other kinds of vegetable oil, such as, soybean, sun flower and rapeseed make palm oil as the substitute oil when the supply is in shortage one. It happens because palm oil is the highest productive one among the other kinds of vegatable oil.

For the raising demands, many businessmen are interested in running the business and they try to get the profits by enlarging palm oil plantations. There comes the amounts of palm oil plantatations massively in every year.

EDI SUHARDI*

Actually, the global markets play the biggest role to increase palm oil plantations massively in the world, especially in Indonesia and Malaysia.

Knowing the StakeholdersPalm oil stakeholders in the world

cannot be seperated between producers and stakeholders. The producers actually try to fulfill the consumers needs on palm oil. This makes more demands and the producers enlarge their plantations.

One kind of consumers’ demand nowadays which is often campaigned continously through non government organizations is that palm oil should derive from sustainable palm oil cultivations. What the non government organizations demand has pressed the consumer goods companies, traders and planters to fulfill the demands.

For the consumers are the main markets , the businessmen and the stakeholders wish to fulfill the needs. They

do not do deforestation, do not burn the forests, keep the wildlife good, do the best and sustainable cultivation managements.

Having Roundtable on Sustainable Palm Oil (RSPO), all the claims and demands are formulated in the sustainable principles and criteria in the RSPO (P&C RSPO). Based on P7C RSPO, palm oil productions process could be easily and transparently traced.

It starts from the cultivations of fresh fruit in palm oil factories, transportation, intermediate industries, and the derivative products to be consumed. The usage of palm oil in a product will be easily traced by the consumers transparently.

By the independent auditor board, P&C RSPO audits the realization well. If it fulfills all of the available requirements, the products will have RSPO label which are famously known as Certified Sustainable Palm Oil (CSPO).

CSPO is thought to make more benefits for the producers. But as time


runs, CSPO becomes the regulation for palm oil producers though the selling price of the products should be negotiated in business to business.

Palm oil producers seems to be “afraid” of company’s credibility in the investors and the buyers perspective. By producing CSPO, the producers should be proud of, there will be more value to have. Especially the selling price will be more expensive from the selling stock to the consumers’ hand. The transformation of the price is taken as part of the environment investment for the sustainable earth too.

CPO Market TransformationIf palm oil producers have “fear”

of the public and NGO pressures, how about palm oil users, such as, traders and downstream industries?

It has been reaching 9 millions of tons of produced CSPO; but the selling, based on the statistic in RSPO, is just about 50%. This reflects, the CSPO users just commit only. CSPO could be more to use if the biodiesel products also require CSPO and ISCC. In addition, there are lots of CSPO producers having integrted downstream industries.

It may happen, the producers do not want to sell CSPO for the less profits to get. But it will be different if selling CSPO by having ISCC certification.

Indonesia as the biggest palm oil producer in the world should commit to produce sustainable palm oil. There has been some phases to pass through since 2004. In the beginning, it was explored for the convenience to run palm oil business. In the next three years, the experiment was held in P&C RSPO – base, that is, to adapt sustainability. Many companies run the regulations well.

Having 12 year process, palm oil businessmen togetherly commit to run sustainable and best cultivation in the RSPO standard and other regulations.

If in the previous yearss, Indonesia was the biggest CPO producer, now Indonesia becomes the biggest CSPO producer in the world. This CSPO production should be supported by other stakeholders, such as, the derivative industries, traders, banks/investors and the consumers themselves to consume CSPO as part of the same norm.


GROWERS INFO

Profits for the CSPo Producers Challenges for non RSPo Producers

Have a greeny producer predicate. The decreasing productivity.

Efficient to advantage the natural resource. CPO is only for certain markets.

The increasing productivity and the yield production. Difficult to make high standard.

Minimal disturbance from the outside. -

Profits and Challenges of the Producers

Source: Central Data of InfoSAWIT, 2014

Source: RSPO, 2014

CSPO and CSPK Production (tons)CSPO (MT) CSPK (MT)

*) VP II Roundtable on Sustainable Palm OIl (RSPO)


BOOK INFO

BELGIA – A Spain multinational company running energy, telecommunication, transportation, and environmental businesses, Abengoa (NASDAQ ; ABGB) won the contract to build a biggest biomass project in Europe to be used to Belgian Eco Energy NV. As quoted from Bloomberg, there will be 315 millions of Euro or US$ 393 millions. The facility will use wood and agricultural waste as the materials.

CAGAYAN DE ORO CITY – Philippine Development Bank has signed MoU about the plantation enlargement and palm oil cultivation factory in Kalilangan, Bukidnon province in a programme, called Sustainable Agribusiness Funds and Planting Trees. As quoted from Mindanoa Examinier, the project is part of business partnership with Bali Oil Palm Produce Corporation and Palm Oil Farmers Association in Kalilangan by developing 3000 hectares of palm oil plantation together with the 30 tons/hour palm oil cultivation factory.

SIDNEY – Doritos, a kind of food product which is produced by American food company, Frito-Lay got some protests from the consumers protective organization activists in Australia, SumOfUs. They urged the company to use sustainable palm oil which other companies have used. Quoted from Seven News, the activist of SumOfUs, Chris Wright thought, enlarging plantation endangers the wildlife, such as, orangutan and Sumatran tiger. And Chris censured the company supplying palm oil products without having environmental cerficates.

CHAMPAIGN – University of Illinois in Champaign, Illinois, USA did a research that the phosphor in a copra . and palm oil kernel is good to develop psichology function in a pig. As quoted from All About Feed, the research team, lead by Professor of Zoology, Hans H. Stein said, the experiment used copra oilcake, palm oil kernel from Indonesia and Costa Rica and palm oilcake from Costa Rica.

LONDON – Multinational company producing several kinds of foods, and household equipments, Unilever commits to use sustainable palm oil in Europe by the end of 2014. The Wall Street Journal mentioned, this is to fulfill what Unilever has promised to use the products from the traceable source in 2020. The company is one big consumer in palm oil derivative products, which reaching 1,5 millions of tons per year. KUALA LUMPUR – Belgium commits to import Malaysia’s palm oil for their food industries. Daniel Dargen, an embassador of Belgium, as quoted from The Star said, some Belgium companies, such as, Oleon NV and Biotech International Asia are also interested in running palm oil business with Malaysia to develop oleochemical and biogass productions.

IN BRIEF

PLANTING PALM OIL IN MANY KINDS OF AREA

The fast national palm oil enlargement, the good climate and the fertile land in most regions in Indonesia could make palm oil grow well

within the good rainfall in every season in each year.

Years ago (before 1980’s) it was easier to enlarge palm oil plantation than nowadays. This happens for the tight regulations and the emerging of negative issueswhich make more difficult to get the new palm oil plantations.

North Sumatera as the idol province to plant and cultivate palm oil has no more new licence to do plantation. The area in Kalimantan has no ideal requirements to grow palm oil maximally

and neither have Papua and Sulawesi. But palm oil could actually be planted

in many kinds of area, both in wetland, tidal land, abandoned area, and sandy area. But it needs right and optimal land cultivation.

Book written by Sunarko discusses about palm oil cultivation in many kinds of area within land enlargement technics, planting, nursing, and the harvest process.

It also gives many informations about the licence and environmental management so that the farmers or planters get easier to fully understand about palm oil cultivation in marginal areas. Have a nice try.

Title : Budi Daya Kelapa Sawit di Berbagai Jenis LahanEditor : Ir. Sunarko, M.SiPublisher : Agromedia PustakaPages : viii + 200ISBN : 979-006-494-2Year : 2014

53 www.infosawit.com | INFOSAWIT DECEMBER 2014 53

MIRROR

Kris Hadisoebroto

DREAM OF FUEL SUBSIDY RE-ALLOCATION THE HIGHER PRICE OF FUEL SEEMS NOT TO BE POSTPONED ANYMORE BY DIVERTING IT TO THE OTHER PRODUCTIVE SECTORS WHICH ARE HOPED TO INCREASE THE NATIONAL ECONOMY IN A WHOLE.

A ll sides realize, the amount of fuel subsidy was fabulous. It is about Rp 20 billions or about US$ 1800 millions in every single month

which the people’s money is spent to the vehicles going and forth in a traffic jams everywhere in many regions.

This clearly shows, it is inefficient subsidy which has been running for years. Now the new government of Jokowi – Jusuf Kalla, running the government for about several months, makes unusual regulation by raising the fuel price (diesel and gasoline). This made some demonstrations and conflicts in some major cities in this country.

Though the government tries to anticipate by giving the Health Cards, Smart Card and Welfare Cards to the poors in many regions in this country, the price of food ingredients seems not to be left behind. They are getting more expensive too.

There should be bitter decision because many sides thought, the re-allocation of the subsidy was misdirection and became consumptive. That is why, it should be diverted to the productive sectors, such as, irrigations, rails, ports, sea infrastructures, and other kinds to improve the national economy progress in the next years.

The inefficiency, as the facts show, is hit by the domestic industrial investment developers. The minimum infrastructures and the lack of unstable electricity in the investment location make the invisible investment too in this country.

For example, in Dumai, Riau, there are many supportive locations; the sea is

deep, the material and energy are excessive. But the limited port infrastructures force the expensive investments. The investors should build their own ports, make power plants, water installation, and waste cultivations. These make more expensive and uncompetitive investments.

This is different with the ASEAN countries; plus China, Korea, Japan. They have been making conducive situation though having lack of materials and natural resources. They have competitive products and master the international markets.

The dream is that, by relocating the subsidy, the government must have the additional monetary and fund to build the ports, high ways, rails, and others to support the domestic industrial development so this country could compete and penetrate the global markets.

What the government has suggested to the industries natural resources – base, including palm oil ones to develop the downstream sectors, should not only give intencive of the taxes and regulations.

The government has lots of duties to do, such as, improving the licence sectors, finishing and legalizing the spatial, and the law enforcement firmly.

If all sectors are realized, there will be efficient and competitive output in the international markets in the end.

Hopefully, what the people of Indonesia desire to have prosperous and developed country could really happen in a short term. D

oc. I

nfoS

AWIT

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