Indonesia is the largest Palm Oil exporter in the world. People currently are conscious with the consumption of palm oil because of the negative effect of palm oil industry. Indonesian Government tackled this challenge by publish several regulations.

1. Indonesia’s Palm
Industry Overview

2. Palm Oil
• A type of vegetable oil that is
produced from the fruit of oil
palm (Elaeis guineensis)
• Production of Palm Oil takes
place in Borneo and Sumatra’s
rainforest. It has a suitable light,
humidity, and fertile soil that
makes palm oil grows well in
Indonesia.
• It is used for production of
cooking oil, soap, margarine,
biodiesel, soap, etc.

3. Indonesia : Largest Exporter of
Palm Oil
• More than 50% of palm oil used worldwide comes from Indonesia
• Palm oil contributes 8.9% of total export from Indonesia
• Palm oil as major contributor for GDP Growth rate
• Around 2.7% labour force created from palm oil industry

4. Negative
effect of Palm
Oil Industry
• Deforestation:
Palm oil industry burns
the rainforest to create
a new field for palm oil
plantation
• Destroy habitat for
endangered species
• Air pollution, haze

5. Indonesian Government Action to
Encounter the Challenges
1. B15 Program
– A Program to blend 15% biodiesel to diesel fuel.
• It aims to decreases the consumption of imported diesel fuel
• Reduce carbon dioxide emission by 29%
2. Cruse Palm Oil (CPO) Fund
- The fund will be collected at rate USD$50 per ton of CPO and USD$20-30 per
ton of processed palm oil that are sold.
- The fund that is collected will be used for research and development of
biodiesel, subsidize B15 program, and also for replanting older palm oil trees and
other trees that belong to community to build Indonesia’s rain forest again.

6. Palm Oil Chemicals
RBD Palm Oil RBD Palm Olein RBD Palm Stearin
RBD Palm Kernel Oil RBD Palm Kernel Olein RBD Palm Kernel
Stearin

7. Palm Oil Chemicals
Palm Acid Oil Palm Fatty Acid
Distillates
To buy these palm oil chemicals and other derivatives of palm oil chemicals, you
can visit Tradeasia’s website to get more information (www.chemtradeasia.com)
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