The benefits of palm oil from Indonesia not only enjoyed by the people of Indonesia but is also enjoyed by almost all people of the world!
The development of the Indonesia palm oil belongs to this revolutionary, to be attractive and to the attention of the global community. Change the position of the palm oil became a world vegetable oils replacing soybean oil (which is almost 100 years has been a major world oil) has given rise to the new dynamics of competition the global vegetable oils.
The increased production of world palm oil, particularly Indonesia, has brought changes to the four vegetable oil world market, namely palm oil, soy, sunflowers, and rapeseed. In 2014, the area of the four vegetable oils of the world reached 191 million ha, comprising 58% (110 million ha) is an area of soybeans. While the vast palm plantations just 10%, or 19 million ha.
This means oil palm requires 10 times less land than the other three major oil producing crops, soya, rapeseed and sunflower. In addition to the 3.74 tonnes of palm oil per hectare, 0.4 tonnes of palm kernel oil and 0.4 tonnes of palm kernel expeller / cake are also produced from the fresh fruit bunches or FFB.
This means oil palm requires 10 times less land than the other three major oil producing crops, soya, rapeseed and sunflower. In addition to the 3.74 tonnes of palm oil per hectare, 0.4 tonnes of palm kernel oil and 0.4 tonnes of palm kernel expeller / cake are also produced from the fresh fruit bunches or FFB.
But in terms of oil production, soy only produce oil amounting to 47 million tonnes or 31%, while palm is able to produce oil amounting to 41 million tonnes or 62% of the total production of the four major vegetable oils of the world. Thus, there have been changes in the share of palm oil and soybean oil vegetable oil market in the world. The share of palm oil increased from 26% (1980) to 41% (2014).
While the share of soybean oil dropped from 53% to 31% in the same period. Changes also occur in the global vegetable oil consumption patterns. The share of palm oil increased rapidly from 22% (1980) to 42% (2014). Instead the share of soybean oil dropped from 55% to 32% in the same period.
Changes in the share of production and consumption that puts the world vegetable oils palm oil as the world's main vegetable oils, and Indonesia as the world's major producer has brought its own dynamics in the international political economy.
Palm oil and Indonesia has become an international spotlight. Indonesia palm oil benefits not only Indonesia but enjoyed almost the entire world community also enjoyed it through the Indonesia palm oil export activities to different countries.
The main countries of destination Indonesia palm oil exports are India, China, the European Union, and other countries. Palm oil as vegetable oils are available in sufficient volume globally and with competitive price cause palm oil consumed in almost every country..
Productivity in higher palm oil led to price in the international market is cheaper than other vegetable oils. The price of palm oil is such a competitive benefit the world community.
First, the price of palm oil is cheap and is available internationally may prevent excessive rise in the price of other vegetable oils. This is advantageous for countries that low-income regions such as Africa.
Second, the presence of palm oil also reduce the problem of trade-off between fuel with food faced by developed countries including the European Union. As the OECD analysis (2006) said if the EU reduces FUEL consumption by just 10% of the fossil and replaced with biofuels, then it should convert 70% of farm land into vegetable oil crops. With the availability of palm oil internationally and cheap, then fossil FUEL substitution programme using biodiesel can be done, and the European Union does not have to convert his farm land. It has been confirmed in the European Union which is about 38% over its oil imports are used for energy, both biodiesel and electricity.
Third, the availability of palm oil in developed countries also create economic benefit in countries importers. For the European Union for example, the economic benefits created there due to the use of palm oil every year to increase Europe Union GDP to 5.7 billion euros, creating Government revenue amounted to 2.6 billion euros, and create job opportunities for 117,000 people.
