UNIMAL Open Conference System, Malikussaleh International Conference on Multidisciplinary Studies 2022

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VALUE CHAIN ANALYSIS of PALM OIL in INDONESIA (CASE STUDY in EAST BORNEO PROVINCE)
Antonio Marro Sipayung

Last modified: 2023-01-17

Abstract


Indonesia supplies more than half of the world's palm oil. Malaysia is the second-largest supplier of palm oil. Palm oil from multiple suppliers is combined at various stages in the supply chain, making it difficult to trace from the plantation to the final product. Smallholder development began during the New Order era in the late 1970s with the World Bank scheme. The plasma scheme started in the early 1980s through the series project Perkebunan Inti Rakyat (PIR). Value chain analysis was carried out in three districts in East Kalimantan Provinces. The company has a core business in the field of processing crude palm oil (CPO) which comes from fresh fruit bunches (FFB) belonging to its plantations and from farmer groups around the area of ​​oil palm plantations and processing palm kernels oil (PKO). The capacity of crude oil processing plants (CPO) varies from the lowest, which is 30-ton FFB/hour and the highest is 90 tons FFB/hour.

Keywords


Value-Chain, Palm Oil, plantation, Fresh Fruit Bunch (FFB)