Oil Palm Plantation in Indonesia

Overview of Indonesia as the largest oil palm plantation in the world

Indonesia is a wonderful archipelago country located in South East Asia region. It is extending 5,120 kilometres from east to west and 1,760 kilometres from north to south.  Based on a geospatial survey conducted between 2007 and 2010, Indonesia has 13,466 islands. There are five big islands  Sumatra, Java, Kalimantan, Sulawesi and Papua and also two major archipelagos (Nusa Tenggara and the Maluku Islands). Indonesia is also well known as the largest oil palm plantation in the world.

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The Distribution Area of Oil Palm Plantation

The island of Sumatra has the largest plantation area as compared to other islands. The area of oil palm plantation belongs to the local people, reaching 3,526,582 hectares. Further more on the island of Kalimantan covering an area of 837,615 hectares, Sulawesi island with 175,059 hectares of land, Maluku and Papua islands with an area of 28,367 hectares, and the island of Java of 7,478 hectares, also owned by the local people.

Large State-Owned Plantations (PBN) that originated from the colonial era on the island of Sumatra, unfortunately less significant growth. With a plantation area of 555,203 hectares, PBN often suffers a major dilemma as a state-owned enterprise. Its existence, often distorted politically and under pressure from communities living around its plantations.

The existence of Private Plantations (PBS) is also growing as fast as plantations owned by the people. With the plantation area reaching 3,057,275 hectares, the oil palm plantation owned by the private sector, is also very influential on the development of oil palm plantations that have been more than 100 years growing on the island of Sumatra.

Sumatra is also known for the existence of old plantation companies that have been established since the Dutch colonial era. In short, London Sumatra, which has been acquired Salim group recently. Naturally, if the existence of oil palm plantations have a large share of regional development, such as the provision of employment, economic improvement and welfare of the wider community.

Based on data from London Sumatra Plantation Company (PP), which has a code of LSIP issuers recently, the company has a land area of 114,206 hectares, of which 82% is planted with oil palm, 15% rubber trees and the remaining 3% for other crops. The LSIP issuer also reported productive land growth that produced an area of 3,128 hectares, thereby strengthening a profitable land base capable of producing up to 81.769 hectares of crude palm oil.

Sumatra Island also gave birth to plantation companies owned by national entrepreneurs, such Salim, Eka Tjipta, Sukanto Tanoto to Martua Sitorus who has large oil palm plantations within the group of his company until today.

Starting from the demands of global consumers who want the availability of palm oil to supply the needs of the world market. Today, Indonesia becomes an archipelagic country capable of being integrated into one via a national oil palm plantation. The existence of oil palm plantation that almost always reside in the large islands become one of the adhesive power.

Although the island of Nusa Tenggara & Bali does not have oil palm plantations, but the consumption of palm oil from the people who are in it, also become the adhesive power. Indeed, the Indonesian people benefit greatly from the abundant supply of palm oil in the country.

The island of Kalimantan, Sulawesi and Papua, has its own charm of the extent of land that it still has. If sustainable palm oil plantation development is carried out on these islands. Then the existence of oil palm plantations is very likely to grow rapidly and promote the community.

CPO production potential is very large, when used as raw materials to produce products of high quality food and non-food oil. Products that have been known to this wider community, also healthy and environmentally friendly, so safe to eat.


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