The Development and Prospect of Indonesian Palm Oil Industry and Its Derivative Products

Abstract

In 2013, the world palm oil production reached 55.7 million tons. Indonesia and Malaysia shared 85% of it with their production of 26.70 and 21.70 million tons, respectively. The aims of this study were to identify and analyze the development and prospect of Indonesian palm oil industry and its derivative products. Data were analyzed by using a descriptive approach. The area of oil palm plantation increased to 9,074,621 ha in 2012. Indonesia’s palm oil production in 2012 was 23.5 million tons. There was also an increased Indonesia’s palm oil export to 18.15 million tons in 2012. In 2010, the installed capacity of cooking oil industry in Indonesia was 15.4 million tons. For fatty alcohol industry, the installed capacity was 320,000 tons/year. In 2007, with real production of 300,000 tons, the 100% real capacity was almost reached. The installed capacities of biodiesel and glycerin industries in 2011 were 3.4 million kiloliters/year and 142,700 ton/year, respectively. In 2010, glycerin production was about 204,394 tons. Glycerin production was 121,640 kiloliters from fatty acid and fatty alcohol industries and 61,694 kiloliters from biodiesel industry.