scholarly journals A Review of Key Sustainability Issues in Malaysian Palm Oil Industry

2021 ◽  
Vol 13 (19) ◽  
pp. 10839
Author(s):  
Lakshmy Naidu ◽  
Ravichandran Moorthy
Keyword(s):  
Palm Oil ◽  
Emerging Economies ◽  
Oil Industry ◽  
International Market ◽  
Developed Countries ◽  
Global Market ◽  
The European Union ◽  
Development Tool ◽  
Negative Perceptions ◽  
The Tropics

The palm oil industry has contributed enormously to the economic growth of developing countries in the tropics, including Malaysia. Despite the industry being a development tool for emerging economies, the oil palm crop is inundated with allegations of its unsustainable plantation practices and viewed as environmentally detrimental and socially adverse. These negative perceptions are amplified through anti-palm oil campaigns and protectionist trade regulations in developed countries, particularly in the European Union (EU). This situation, if further exacerbated, could potentially affect the export of palm oil and the industry as a whole. As such, this article provides a critical review of the key sustainability issues faced by the Malaysian palm oil industry as the second biggest exporter of palm oil to the global market. The various insights and the interpretations of sustainability are contested according to the contexts and the interests of the countries involved. Hence, palm oil is constantly exposed to bias masked by non-tariff barriers from consumer countries to protect their domestically produced vegetable oils. This could constrain the commodity competitiveness in the international market. As issues on palm oil sustainability continue to evolve, policymakers at key stakeholder agencies need to devise strategies to manage global disruption in the palm oil trade.

Analisis Strategi Perlawanan Indonesia Dalam Diskriminasi Kelapa Sawit Oleh Uni Eropa

2021 ◽  
Vol 6 (1) ◽  
pp. 88-105
Author(s):  
M Fuadillah Nugraha
Keyword(s):  
European Union ◽  
Palm Oil ◽  
Industrial Development ◽  
Oil Industry ◽  
The European Union ◽  
Indonesian Government ◽  
Basic Assumptions ◽  
The Stability ◽  
Peace And War ◽  
The Eu

This study aims to determine how Indonesia's resistance strategy in oil palm discrimination by the European Union. Researchers use the perspective of liberalism and idealism, and the basic assumptions are peace and war avoidance. The results show that EU discrimination against Indonesian CPO products requires players in the palm oil industry and the Indonesian government to work together to design and develop intensive diplomatic efforts aimed at the EU government and its people. The Indonesian government's efforts to oppose the EU's incentives for the use of palm oil are 1) filing claims and challenges against the EU incentives to reject palm oil restrictions, 2) The Indonesian government emphasizes the importance of distributing Indonesian palm oil globally 3) Lobbying the leadership of the APEC organization to ensure the safety of Indonesia's palm oil industry 4) Undertake Join Capaign efforts by the world's largest palm oil producer to protect the stability of palm oil shipments and take action against negative campaigns against palm oil, and unite voices in drafting an agreement to jointly support industrial development palm oil to be more resilient against the global backlash on palm oil.

Harmonizing a Thriving World Palm Oil İndustry and Economy through Genuine Collaboration between Producers – Malaysia, Indonesia, and West Africa, and Consumers – India and China

2013 ◽  
Vol 1 (1) ◽  
pp. 11-16
Author(s):  
Osayimwense Osa ◽  
Kausar Saida
Keyword(s):  
West Africa ◽  
Palm Oil ◽  
Emerging Economies ◽  
Oil Industry ◽  
The State ◽  
High Demand ◽  
Paper Review ◽  
Oil Sector ◽  
The One ◽  
India And China

Objective This article probes the state of Africa's palm oil industry and economy today. Methodology/Technique Today, Malaysia, Indonesia, and West Africa are the world's major producers of palm oil; and India and China, the world's most densely populated countries, are the major consumers. However, why is it that West Africa that is naturally endowed with palm oil is the one that lags behind others in the global production of palm oil? Should this kind of natural endowment and the presence of the major world producers and the biggest consumers of palm oil not spell colossal success for global palm oil industry and economy? Findings Without an adequate demand for a commodity, supply will be limited, thus resulting in a downward supply curve. On the other hand, if there is a high demand for a commodity like palm oil, then it will be produced in abundance. Novelty Where and why it has fallen short, and what does need to be done via-a-vis the state of Malaysia's and Indonesia's palm oil sector and the presence of emerging economies like China and India against the backdrop of globalization. Type of Paper: Review Keywords: Palm oil; economy; consumption, globalization

scholarly journals ANALYSIS OF SUPPLY CHAIN MANAGEMENT AND INDUSTRIAL CLUSTER OF OIL PALM IN NORTH SUMATRA

2017 ◽  
Vol 7 (2) ◽  
pp. 201
Author(s):  
Saut H Siahaan
Keyword(s):  
Supply Chain ◽  
Palm Oil ◽  
Raw Materials ◽  
Oil Industry ◽  
Global Market ◽  
Added Value ◽  
Primary Data ◽  
Processing Industry ◽  
Oil Processing ◽  
North Sumatra

Downstream palm oil industry development through concept application of cluster in North Sumatra province is become the hope of government to increase added value and competitiveness of product, but whether this concept can boost the competitiveness of the palm oil industry, remains a challenge. This is mainly related to the diversity of actors in the supply chain industry and competition in a global market that include environmental aspects. Therefore, industry cluster analysis from perspective of the supply chain of palm oil processing industry to be interesting. This study uses a qualitative exploratory approach, and primary data obtained by in-depth interviews of actors in the supply chain of palm oil processing industry in North Sumatra province in 2013 up to 2015. The analysis showed that smallholder plantations have a considerable contribution in supplying raw materials Fresh Fruit Bunches (FFB) for palm oil processing industry, hence the existence of smallholder plantations can not be excluded in the development of downstream palm oil industry. Furthermore, the results of this study also indicate that they need to encourage the establishment of governance structures industry palm oil supply chain, improvement strategies, distribution, and justice so that the distribution of benefits for the actors in the supply chain can be awakened. In this regard, efforts to promote sustainable plantation industry business is still very necessary, especially to preserve biodiversity and benefit all actors in the supply chain of palm oil industry.

scholarly journals The Source of Output Growth: Productivity Performance in the Indonesian Crude Palm Oil Industry

2021 ◽  
Vol 56 (2) ◽  
pp. 405-418
Author(s):  
Dyah Wulan Sari ◽  
Haura Azzahra Tarbiyah Islamiya ◽  
Wenny Restikasari ◽  
Emi Salmah
Keyword(s):  
Palm Oil ◽  
Productivity Growth ◽  
Oil Industry ◽  
Global Market ◽  
Output Growth ◽  
Crude Palm Oil ◽  
Firm Level ◽  
Production Scale ◽  
The World ◽  
The Government

Indonesia has become the largest producer and exporter of crude palm oil commodities in the world. Therefore, the production of CPO turns out to be very greedy for land. There are any problems in production CPO, therefore the study aims to develop a conceptual framework of the source of output growth, whether driven by input or productivity growth, and to implement this concept by investigating the source of output growth in the crude palm oil industry in Indonesia. The investigation applies firm-level panel data and follows a quantitative approach using general method of moments to estimate the production coefficients and calculate the input and productivity growth. The result shows that the output growth of the crude palm oil industry does not lead in productivity growth driven. It seems to be driven by input growth, not by productivity growth. Since growth is still driven by input, the crude palm oil industry will be less competitive in the world market. The high world demand for crude palm oil commodities from Indonesia must be met by using more efficient input factors, optimizing production scale, and supporting technological progress. The government, therefore, must have strategies that are more competitive in the global market.

scholarly journals The Competitiveness of Indonesian Crude Palm Oil in International Market

2021 ◽  
Vol 19 (1) ◽  
pp. 111-124
Author(s):  
Daeng Ahmad Fakhrian Zuhdi ◽  
Muhammad Faisyal Abdullah ◽  
Muhammad Sri Wahyudi Suliswanto ◽  
Setyo Tri Wahyudi
Keyword(s):  
Palm Oil ◽  
Export Performance ◽  
Secondary Data ◽  
International Market ◽  
Qualitative Approach ◽  
Quantitative Approach ◽  
The European Union ◽  
Crude Palm Oil ◽  
Average Value ◽  
Export Volume

The purpose of this study was to know the competitiveness of Indonesia’s CPO exports in the world and strategies to increase Indonesia’s CPO competitiveness. The required data is secondary data from the report of CPO export in Indonesia in 1993-2017. This research-based on the background by the issue of palm oil discrimination by the European Union, where Europe is one of Indonesia’s main CPO export destinations. This research uses a qualitative-quantitative approach, analysis with a quantitative approach is used to analyze the comparative advantage of Indonesia’s palm oil in the international market used RCA. Analysis with a qualitative approach is used to analyze which strategies will be used to improve the competitiveness of Indonesian palm oil. The results of the study show that in 2017 export performance of Indonesia’s palm oil increased. It showed by the value of RCA>1 which is 55,47 and an average of 37,22, Indonesia has the competitiveness of palm oil because of the increased export volume of palm oil to the major importer countries, such as India, Pakistan, and Europe. Indonesia’s still competitive in Europe and Asia’s market based on the average value of the RCA index.

scholarly journals The effect of COVID-19 in European union on the performance of Indonesian publicly listed palm oil companies

Accounting ◽  
2021 ◽  
pp. 801-808
Author(s):  
Hansen Tandra ◽  
Arif Imam Suroso ◽  
Mukhamad Najib ◽  
Yusman Syaukat
Keyword(s):  
European Union ◽  
Palm Oil ◽  
Stock Exchange ◽  
Oil Industry ◽  
The European Union ◽  
Oil Companies ◽  
Industry Performance ◽  
Oil Palm Industry ◽  
The Impact

One of the leading industries that affect economic growth in Indonesia is the palm oil industry. The role of this industry depends on the level of exports from European Union countries. Based on the COVID-19 pandemic situation, international trade activities are hampered and could affect industry performance from a stock perspective. Therefore, this study aims to explore the impact of the COVID-19 cases that occurred in the European Union and related macroeconomic variables on the stock performance of the oil palm industry in Indonesia. This research also examines the impact of COVID-19 on certified sustainable companies and companies that are not certified. Panel regression was applied in this study with Eviews 11 Software.This research's observations are 13 palm oil companies in Indonesia which are listed on the Indonesia Stock Exchange (IDX) from March 2, 2020, to August 31, 2020. This study's results reveal that the world CPO prices and market capitalization affect the activities shares of palm oil companies in Indonesia.Meanwhile, from the grouping of certifications within companies, the impact of COVID-19 in the European Union was more substantial on companies that were certified as sustainable. Based on these results, The COVID-19 case in the European Union must be a concern for palm oil companies in Indonesia.

scholarly journals Impact of Biodiesel Demand on the Malaysian Palm Oil Industry: A Simultaneous Equations Approach

2011 ◽  
Author(s):  
Shri Dewi a/p Applanaidu ◽  
Fatimah Mohd. Arshad ◽  
Zulkornain Yusop ◽  
Mad Nasir Shamsudin ◽  
Mohammad Haji Alias
Keyword(s):  
Renewable Energy ◽  
Palm Oil ◽  
Least Squares Method ◽  
Oil Industry ◽  
Structural Equations ◽  
Biodiesel Production ◽  
Transport Sector ◽  
Annual Data ◽  
The European Union ◽  
The Impact

The European Union (EU) Renewable Energy Directive set a target of 20 % share of energy from the renewable sources and 10% share of renewable energy specifically in the transport sector. This has resulted in some countries looking for bio-based alternative energies which lead to the increase in demand for bio-based feedstocks such as palm and rapeseed oil (for biodiesel) and sugar cane and corn (for ethanol). One of the new elements in the palm oil market is the growing demand for this commodity as a feedstock to biodiesel production. This will also put Malaysia in a better light on the international front for taking the effort to reduce carbon emissions. In line with this, the palm oil sector in Malaysia will be able to match the New Economic Model’s (NEM) major goals of high income, sustainability and inclusiveness. This new development is affecting the dynamics of the market, in particular, the supply and demand sectors of this commodity. This paper seeks to examine the impact of biodiesel demand on the Malaysian palm oil industry. This paper proposes a structural econometric model consisting of nine structural equations and four identities. The model has been estimated by the two stage least squares method using annual data for the period 1976–2010.  

scholarly journals Barriers and Benefits Arising from the Adoption of Sustainable Certification for Smallholder Oil Palm Producers in Malaysia: A Systematic Review of Literature

2021 ◽  
Vol 13 (18) ◽  
pp. 10009
Author(s):  
Nurul Fathiah Aziz ◽  
Norshamliza Chamhuri ◽  
Peter J. Batt
Keyword(s):  
Palm Oil ◽  
Agricultural Practices ◽  
Oil Industry ◽  
Economic Benefits ◽  
Labor Rights ◽  
The European Union ◽  
The Social ◽  
The Government ◽  
Social Environmental ◽  
Sustainability Standards

Malaysia is the world’s second largest producer of palm oil, which, not unexpectedly, is one of the largest contributors to the country’s GDP. However, the Malaysian palm oil industry faces numerous issues, including a boycott for imports into the European Union (EU) on the basis that Malaysia does not allegedly practice good agriculture, fails to meet sustainability standards and exploits labor rights. To overcome the situation, the Government of Malaysia is strongly committed to implementing good agricultural practices that meet international sustainability standards through sustainable certification. To facilitate the adoption of sustainable certification by smallholder palm oil producers, through a comprehensive review of the literature, this study seeks to identify the social, environmental and economic benefits derived from sustainable certification.

scholarly journals Exploring the European Union Renewable Energy Directive and its Implications for Indonesias Palm Oil Industry

2017 ◽  
Vol 5 (1) ◽  
pp. 27-38
Author(s):  
Bondan Widyatmoko
Keyword(s):  
European Union ◽  
Renewable Energy ◽  
Palm Oil ◽  
Oil Industry ◽  
Market Penetration ◽  
The European Union ◽  
Slowing Down ◽  
Sustainability Criteria ◽  
Oil Market ◽  
The Eu

The Renewable Energy Directive (RED) is a vehicle for environmental NGOs concerned about biodiversity destruction in Indonesia, for European biodiesel producers to admit new competitors, and for European Union (EU) interests to build a secure and sustainable economy for their region. In other words, it is a manifestation of the di?erent interests of many agencies that share grace and favour over palm oil development in the EU. By observing the RED as the vehicle and the EU system of governance as its course, this paper records the interactions between those agencies in shaping the policy. The observations allow for agencies contributions to the images of palm oil. It depicts that biodiversity destruction is the basis for the sustainability criteria in the RED but it was not the only cause of the slowing down in the pace of the Indonesian palm oil market penetration in the region. To some extent, the RED is considered a trade barrier for Indonesian palm oil. However, the RED is an incentive to strengthen the image of the palm oil industry in a more constructive way and ensure the longevity of the industry.

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