Showing posts with label business. Show all posts
Showing posts with label business. Show all posts

Wednesday, July 4, 2012

Benefits of castor oil

Benefits of castor oil is to replace diesel oil as the generate electrical power. The tree can be cultivated in almost all regions of Indonesia. So, this help people to meet the energy needs of remote areas and this power can be produced by the communities that need electricity. Research about this new commodity has been conducted by Dr. Ir Robert Manurung MEng, lecturer in the Department of Industrial Chemistry Institute of Technology Bandung (ITB), accompanied by Eiichi Kobayashi Masanori Nagayama and from New Energy and Industrial Technology Development Organization (NEDO), under the Japanese Government agency that helps the research of new energy sources. Castor oil is obtained from Jatropha curcas L. which is a bush family of Euphorbiaceae. Within five months, this drought-resistant plants is starting to bear fruit, full productive at the age of five years old, and its productive life reach 50.
In fact, a coal mining company and a Japanese manufacturer of heavy equipment operating in Indonesia have developed new business opportunities in the form of the production of fuel from castor oil. The capacity is expected about 8,000 tons per year by 2012. This natural power resources is expected to live 100 units of mining dump trucks with a capacity of 90 tonnes used in coal mines in South Kalimantan. The biodiesel from jatropha would replace 20 percent of fossil fuel use which can not be recycled. To obtain the planned capacity of 8,000 tons per annum, this requires 4,000 hectares of cultivation land.
In addition, benefits of castor oil is to improve people's welfare, especially in areas with low natural resources. If each farmer were given the right to manage three acres of dry land, with a density of 2,500 trees per hectare and the productivity of 10 000 kilograms beans per hectare and the price of IDR 500 per kilogram of seed, of a family farmer can earn IDR1.25 million per month from the beans. Castor oil can be obtained by simple direct expelling or pressing so that an investment of IDR 3-4 million is sufficient to produce 40 liters of oil per day. Unlike other biodiesel, it does not need any additional ethanol or methanol. Its use could also be 100 percent, no more diesel fuel to be mixed, said Manurung.
In terms of health, jatropha vegetable oil also has anti-microbial properties of pathogenic bacteria, which in the form of soap, it is more active soap to get rid of the bacteria S. aureus and E. coli than any other vegetable oil-based soap. According Aprilian Salis, from PT Pertamina DOH Kalimantan, if properly managed, the benefits of castor oil could reach 30 to 40 percent of total fuel consumption in Indonesia.

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Friday, November 11, 2011

Indonesia Palm Oil Industry Barriers

Secretary General of the Indonesian Palm Oil Association (Gapki), Joko Supriyono, explains that there are six barriers to palm oil industry in Indonesia that lead to expanding difficulties or competitiveness declining if they are not removed.
a. Unclear policies for the land that will be used for development of new plantation as the result of imperfections of national spatial issues and the Provincial Spatial Plan (RTRWP). In addition, there are legal uncertainty of the legal status of the land. These conditions make concessionaires and investors choose to wait and see which of course will affect the rate of plantations expansion.
b. The second barrier: a moratorium policy on primary forests and peatlands can actually complicate the resolution of land issues that have previously been faced with the RTRWP problem.
The president instruction concerning the moratorium is considered to collide with other regulations such as the Law Number 41 (1999) regarding Forestry. On this basis, the policy of a moratorium be counterproductive to the development of palm oil industry.
Although the government provides the degraded land area of 35.2 million ha but its status still in doubt because this areas includes forest areas.
c. The third of Indonesia palm oil industry barriers, high CPO export tax which is progressive is proven not effective to suppress the volume of exports of CPO and have not been able to encourage the development of downstream industry in this country.
Instead, the tax is believed to be unfair to producers of raw materials either state or private estates and smallholders because they do not enjoy increased margins that should be obtained from the high price of CPO in the world today. So it is not appropriate if the tax is planned as the main instrument as the downstream industry actually need more appropriate incentives and attractive.
d. Fourth barrier, the development of palm plantations that led to Eastern Indonesia is less supported by adequate infrastructure such as ports. Supposedly there is an export port in Kalimantan to facilitate CPO sales abroad. In consideration, the total production of crude palm oil (CPO) from Kalimantan and Sulawesi has reached 30 percent of national production. It is also expected soon realized the development of industrial clusters to encourage the growth of the downstream industry.
e. Fifth barrier, the CPO business was harmed by the application of tax rules regarding VAT on primary products of fresh palm bunch (TBS/ Tandan Buah Segar). Because the VAT of TBS is waived so that TBS for input tax on production factors goods couldn’t be credited and become an additional burden. As a result, it leads to double taxation to the integrated companies (production-processing).
f. Sixth, the government should make climate change mitigation program with its own forces without involving foreign aid to overcome Indonesia palm oil industry barrier. The involvement of foreign funds will only make this country more dependent on other countries, while foreign aid is not necessarily give a direct impact on employment and poverty reduction.

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Thursday, November 10, 2011

Palm oil prospect

Palm oil prospect can be evaluated from its strength and opportunity. The expansion of its agribusiness is one of the steps required as plantation sub-sector development activities in order to revitalize the agricultural sector. The growth of various subsystems that is very rapidly in this agribusiness since the late 1970s is the evidence for the rapid movement of this industry. World's palm oil demand has increased in the last two decades, first for use in food, consumer products, and more recently as the biofuel raw materials. Malaysia and Indonesia account for approximately 87 percent of world production.

This commodity with its various uses for both food and non food industries, show the development which is not only associated with the growth of vegetable oil in Indonesia and the world, but also related to the growth of other sources, such as soy, rape seed and sunflower. In terms of competitiveness, palm oil (PO) has a good competitiveness compared to others, because: (1) its productivity per hectare is quite high, (2) it is an annual plant which well adapt to various agro-climate change, and being reviewed from its nutritional aspects, it has not been proven to cause increased cholesterol levels, and even contain beta carotene as a source of pro-vitamin A.
CPO (Crude Palm Oil) is a major commodity of plantation sector in Indonesia which is the second largest producer after Malaysia. Various advances have been gained in development of its plantations and a variety of benefits has to be realized as a result of this agribusiness actors efforts. Support from various parties such as banking, research and other economic infrastructure support by the various agencies involved in this sector is very important role. Its tree which is an annual plant may play a role in the absorption greenhouse gases or other environmental services such as biodiversity conservation or eco-tourism.
Palm oil prospect in Indonesia gave a very positive impact in national establishment, since PO is one source of foreign exchange from non-oil sector which is quite important. World vegetable oil consumption always exceeds its production so that the tendency of the world vegetable oil prices will always go up. From World Oil: production and consumption of edible oils during the period 2008-2012 is estimated to 132 million tonnes, while production is only 108 million tons so it needs a new supply of 24 million tons.
Palm oil has better prospects than others in the future due to several factors, among others:
1. Palm oil productivity is quite high compared to others.
2. For annual crops, PO is easier to adapt to its environment compared to others such as soybeans and sunflowers.
3. Judging from the healthcare, PO has the advantages when compared with others because they contain beta-carotene as pro-vitamin A and vitamin E
4. PO can also be used as raw materials for oleochemical industry which has the advantages compared to products made from petroleum. Palm oil is a source of raw materials that can be renewed (renewable), while petroleum is expected to be depleted within the next few years.
5. Oleochemical products are made from PO is safer, because its edible nature of and it is friendly to the environment and is easily broken down.
The increasing demand for vegetable oils is in line with population growth and economic growth. Therefore, plants with higher productivity of oil will meet the expectations of market demand in the future. PO productivity is up to 4 tons / ha / year exceeds the productivity of soybeans which is only 0.4 tons / ha / year and 0.57 tons of rapeseed oil / ha / year. In addition, Konferensi Minyak Sawit Indonesia VII (7th Indonesian Palm Oil Conference) held in Bali by GAPKI can provide a clearer picture about palm oil prospect.

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Wednesday, November 9, 2011

Palm Oil Industry Development Strategy

Palm oil industry development strategy in Indonesia need to be formulated carefully, considering that it is a country with the largest world supplier of CPO. Their production in 2009 reached 18.6 million tons. Business prospects this commodity in this country would be good if all aspects were well managed by the government and must be fully supported by the palm oil (PO) industry. There are seven obstacles to the development of Indonesia's PO industry. Of the seven barriers can be concluded into four main things that should be considered by all parties.
Infrastructure development strategy
One of them is the absence of an international port as a main distribution point for palm oil from Indonesia. Then the suggestion offered is to start building an international port in the strategic areas of PO business (clusters) such as in Kalimantan (Borneo), Riau, and We Island at the northern part of Sumatra. The ports can be placed in the Straits of Malacca to be related to the European market, while to seize the Asia market, it can be built in the Natuna Sea or Borneo.
Environment Strategy
The existence of a moratorium on natural and peat lands are directly delivered by the president as a result of an agreement on inter-country meeting in Oslo, was worrying because it is probably narrow the possible field for the plantation. But after further review, the moratorium is for the common good. Business actors also recognize the support of a moratorium, but the government is expected to be fair in all the sectors of interest, and wise.
Development strategy of palm oil downstream industry
There is a desire of the investor to hasten the formation of a specialized agency that houses the business. High commitment is needed from government embodied in the form of, among others, a clear blueprint on the development of PO industry, policies that helps the development of the industry from upstream to downstream, and development activities are coordinated and integrated among relevant agencies, as well as the creation of more conducive investment climate to create more interest in the PO industry. Promotion institution is required specifically to promote the Indonesian palm oil products to the export destination countries to improve market access for that products in the international market.
Regulatory Improvement Strategy
These include the taxation system. Ideally the government establishes a warm climate to make a breakthrough policy. The fact, the government set higher taxes for the PO business, so the investors preferred to directly build a cooking oil factory in export destination countries. It is suggested that this tax can be minimized and better optimized if the tax paid to be returned again on the path of palm oil business, among others, to build the infrastructure, and returned in the form of incentive for farmers, so it will push the productivity up.
In addition to the four things that should be observed above, there is one additional strategy which is said by the Indonesia minister of agriculture, Mr.Suswono, that the key to overcoming the problem of low productivity per hectare, is research. Research needs to be held and allocated sufficient funds to do research because it is proven in the country of Malaysia which have less land for plantation, but their palm fruit can be produced twice as much as Indonesia in one hectare. Malaysia which is one of world's PO producer, has the Malaysian Palm Oil Board, which is a fusion of the two institutions: research and licensing institutions.
In addition, the 7th Indonesian Palm Oil Conference held by GAPKI expected to provide deal solutions for various issues and development strategies for palm oil industry.

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Tuesday, November 8, 2011

Threats to palm oil business

Threats to palm oil business came through the anti-palm oil campaign that continues to this day. Even the pressure given to that industry may be growing stronger in the future. The campaign theme is still associated with the issue of climate change and environmental degradation. The series of such campaigns will be more systematic, which not only carried out by NGOs alone but by certain consumer groups and some countries in the European Union, through the threat of new standards enforcement in the palm oil trade and apply the rules in the form of non-tariff barrier.
According to the results of the ICBS (2000) that the American Soybean Association (ASA) conducted a policy of unfair trade (not fair) with a campaign that the CCO (crude coconut oil) and CPO contain saturated fatty acids and high cholesterol which are not good for health. This course will build a negative brand image as well as threats to business, especially palm oil from Indonesia. It because soybean oil produced by American countries is more expensive than PO and is unable to compete with PO. Soybean oil export share even have started to be taken over by the CPO. Its production costs only U.S. $ 180/ton, while soybean oil U.S. $ 315/ton and rapeseed oil U.S. $ 750/ton. Seeing this condition, ASA led by the USA started campaign negative issues against the CPO in the hope customers will come back to consume soybean oil.
Therefore, to counteract these issues, the Indonesian government is seemed to approach through trade lobbying. Fight against such threats through scientific way such as research to find objective data in supporting the CPO trade and then the results are published on an international scale.
By considering the increase in world vegetable oil demand and the expansion of all the world vegetable oil production, palm oil business should not stop the expansion if they do not want to lose market opportunities and lose momentum of building a national economy.
Therefore, the government should create a good climate to making a breakthrough policy as an effort to overcome the threats facing the business of palm oil.

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Saturday, November 5, 2011

Indonesia palm oil prospect

In order to study Indonesia palm oil prospect, it is needs to estimate the market opportunities (increased consumption) in the world market. Based on the previous estimation, the consumption level until 2025 is expected to range between 41.45 - 44.45 million tons. On the other hand, world CPO production in 2004 was 25.67 million tons. Thus, the chance to increase production until 2025 is ranged from 15.78 - 18.78 million tons.
With a fairly open market opportunity both in terms of world exports or consumption, CPO producing countries will try to exploit these market prospect. Malaysia and Indonesia is to lead this competition. As expected, Malaysia as the main producer is expected to take these opportunities with increased production at a rate of 2.8% -1.5% per year. Indonesia is predicted to increase production at a rate between 3.0% -7.6% per year.
There are several arguments told that with the support of consistent and effective policy, associated with the Indonesia palm oil prospect, this country is expected to capitalize on most of these market opportunities. The main factor is the availability of land that is still quite large. The availability of land suitable for palm plantation in Indonesia reaches about 2.9 million ha. On the other hand, Malaysia faced difficulties because of the very limited land for expansion. Other countries such as Thailand, etc. are also not predicted as the real competitor because of their limited land, and its policy which not putting palm oil as a commodity. Nigeria palm oil output is estimated to be only sufficient to meet their domestic needs.
With this argument, Malaysia is predicted to take the opportunities by 20% (3.16 - 3.76 million tons) and approximately 40% (6.31 to 7.51 million) will be utilized by other states. Indonesia is estimated to take the greatest prospect to utilize about 40% or about 6.31 to 7.51 million. This means that with the assumption that productivity is about 3.5 tons of CPO / ha, they have a chance to expand between 1.80 - 2.15 million ha. If the expansion carried out between the years 2005-2025, then every year they should expand about 120 -140 thousand hectares to support their palm oil prospect.

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Monday, October 31, 2011

Palm oil downstream industry development

Agriculture expert from Bogor Agricultural University (IPB), Prof Erliza Hambali told through the development of the palm oil downstream industry, it could be one of Indonesia's biggest foreign exchange producer. According to Prof. Erliza Hambali, the industry can be relied upon as a driver of national economy and are able to produce large amounts of foreign exchange. Referring to the data issued by the chamber, protection of national income in 2010 of crude palm oil (CPO) reached U.S. $ 14 billion.
Prof. Erliza argues, the income from CPO at U.S. $ 14 billion can be increased through the development of palm oil downstream industry (IHKS). With such development, value-added product in Indonesia can be utilized as much as possible both to improve people's welfare state and foreign exchange.
He said that, until now Indonesia is the country's largest CPO producer in the world. This reputation has been borne by Indonesia since 2006. According to him, the advantages of Indonesia at the sub-sector needs to be kept on hold and was developed to improve the welfare of the community.
He believed the development of the palm oil downstream industry may be the important key in the national economy forward, foreign exchange, job creation, increase added value for CPO and improve national food security and energy.

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Sunday, October 30, 2011

World's palm oil producers

Indonesia is now the world's largest palm oil producer beat Malaysia, Bangkok, Thailand, and several other agricultural countries. In the last 5 years, the development of palm plantations in that country reached 5 million hectares of the reserve potential of 19.7 million hectares, or much broader than with Malaysia remaining 4.6 million hectares. Previously, Malaysia known as the largest producer but now their land had limited and was replaced by Indonesia. A rapid development of palm oil industries in this country,is supported by land and climatic conditions which is suitable for plant growth.
Meanwhile, the development of downstream businesses is continued to be developed. CPO is generally processed into refined oil, in the form of cooking oil (olein) and other products such as cocoa butter substitute (CBS), industrial margarine, and so on. The development of its chemical industry is also very heavily developed. The oleochemical industry today has been developed by some of the world's palm oil producer. In fact, in addition to an existed plant in Tanjung Morawa, today, one of the companies has nearly completed the world's largest oleochemical industry, which is located in Kuala Tanjung, North Sumatra. Construction of the plant has attracted one of the largest consumer goods manufacturers in the world, to order their products over the next 15 years.
Indonesian Palm Oil Association (Gapki) said Indonesia's CPO production in 2005 reached 15.2 million tons. From that volume, $ 4 million tons is consumed for domestic purposes and the remainder, 11.2 million tons, for export. This quantity can be compared with the export data from the Indonesia Bank data that said during 2005, it reached U.S. $ 4,707 million. If the price per tonne of CPO reached U.S. $ 400, then the number is very similar to the export volume issued by Gapki, which is about 11.2 million tons.
Then by the production volume of 15.2 million tons, whether this country has become the biggest producer or not? For that purpose, you may look for the production data from Bank Negara Malaysia, or the Malaysian Central Bank, which is seen producing highly reliable data. The result is the production from Malaysia in 2005 only 14 million tons. This means that Indonesia was already the world's largest palm oil producer. These facts speak for themselves eventually.

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Friday, October 28, 2011

Tax change effect on palm oil business

Indonesia change its policy of export tax provision of palm oil derived products obtain business reaction from buyer country such as India. The Hindustan country is planning to raise import tariffs of those commodities that will go into their country.
Anticipating the release of the policy, the traders in the country of Hindustan is buying more palm oil derivative products such as RBD olein from Indonesia. A total of 50,000 tons of that olein has been bought by the importer from India. The sources from Indonesia traders and India said the purchase was also a part to anticipate the demand for festivals or holidays in India. The edible oil processing industry in India is driving the government to raise import tariffs of those commodities from 7.7% to 16.5%. This is to protect the their industry interests which is now experiencing idle.
Secretary General of Indonesian Palm Oil Association (Gapki) Joko Supriyono said not know about that action from India. But clearly the current government of India will raise the its import tariff. He explained the presence of Minister of Finance Regulation No. 128/PMK.011/2011 on Regulation Amendment of the Minister of Finance Number 67/PMK.011/2010, it change the set of export tax on palm oil business is more expensive 0.5% to 4.5% from the previous.
"With India raise Indonesia CPO import tariffs became increasingly uncompetitive as it is subjected to the tax both in the producer country and also the destination country," he said.
Joko said India and Indonesia have the same interest-related to the CPO trade between the two countries. But with the government policy to change the rules so Indonesia palm oil products is more uncompetitive.
"Yes, it is strange (situation), if the state imposed a policy of import tariffs, then it is normal, but Indonesia also imposed a policy of export tariff," he said.
In addition to the change in export tax in accordance with the Minister of Finance Regulation No. PMK 128/PMK.011/2011, the Indonesia government has also added a total of 14 palm oil derived commodities(downstream products) are subject to tax exports. Previously those items, include crude palm oil (CPO), which is subjected to exports tax only amounted to 15. Thus there are 29 oil derivative products are subject to tax exports.
It is set in the Minister of Trade Regulation (Permendag) No. 26/M-DAG/PER/9/2011 which is officially assigned at September 14th 2011. HPE as many as 14 palm oil derivative products are subjected to export tax that starting from September 14th 2011 until September 30th , 2011.

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Tuesday, October 25, 2011

World palm oil production

World palm oil production during the last two decades has increased about 7.3% per year. This situation is highly influenced by Malaysia and Indonesia which contributed 80% of the global market.
In the next five years, crude palm oil or CPO production is expected will increase but smaller than the world consumption. Malaysia still dominated about 50% of the world market, while Indonesia is at the second level with 30%. Currently, those countries are the leading CPO producers with controls more than 80% market share.
World palm oil production is also contributed by other countries such as Nigeria, Colombia, Thailand, Papua New Guinea, and even the Ivory Coast, which are arguably only the complements. Malaysia ranked top with the volume in 2003 reached 13.35 million tons, while Indonesia is still 9.75 million tons. In 2004, Indonesia CPO reached 11.5 million tons. That's why a lot of optimism among analysts said that they would soon beat Malaysia, especially if you see the land area in Malaysia is more limited, while in Indonesia is still so widespread.
Palm oil (PO) in Indonesia is mostly absorbed by the food industry, especially cooking oil (CoO) and non-food industry such as cosmetics and pharmaceutical industry. However, the greatest market potential is the frying oil. That potential is evident from the increase of population has implications for the increasing of food needs. Until 1997, their cooking oil production just reached 3.1 million tons of with PO contribution of 2.3 million tonnes of CoO (74%) which require 3.3 million tonnes of PO.
World palm oil production will continue to increase in the future, considering that it has the highest oil productivity per hectare plantation, even when compared with corn, canola, or soybean oil.

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Tuesday, October 4, 2011

Red palm oil as source of vitamin A

Red palm oil as source of vitamin A and E will be the next business prospects of the health sector for more advanced vegetable oil industry. Indonesia as the world's biggest producer of crude palm oil (CPO) has the opportunity to generate new products of healthy vegetable oils. At least 10 million children and millions of poor people in Indonesia still lack Vitamin A, which is beneficial for the eyes health and keep the cell regeneration, immunity, and reduce the risk of cancer and lupus.
Meanwhile, according to nutritionist Prof. Dr. Muhilal, the active form of vit. A consists of retinol, retinal, retinoic acid. Sources of retinol is a liver, food of animal origin. Source of pro vitamin A (carotene) is green vegetables, yellow vegetables, yellow flesh fruit. Palm oil, he said, contains a very high provit. A, but discarded in the process of making cooking or frying oil. To overcome the problem of lack of vitamin A deficiency (VAD), there are four ways. It is consist of food-based interventions, supplementation, food fortification and public health interventions. It is also described that among other food-based interventions is conducted with red palm oil (1963-1969). In that period, children under five years old given one teaspoon of red palm oil per day showed significant increased vitamin A status.
What is the difference between CPO, cooking oil and red palm oil as source of vitamin A ?
CPO is the world's highest-producing carotenoids. The CPO at the first phase of processing showed a solid red color contains beta carotene and provit. A as much as 600-1000 mg per kg or ppm. Carotenoids as a provit. A is easily absorbed by the human digestive tract mucosa cells and then converted into retinol with the potential conversion of 98%. This makes the potential of red palm oil as a source of vitamin A which is much more effective and cheaper than other sources.
The CPO processing into frying oil involves the destruction of the provit. A large-scale cooking oil to obtain a clear or slightly yellow in color. This treatment process, referred to as purification, also destroys vit. E which is also contained in the CPO. If the CPO production in Indonesia reached a minimum production of 16 million tonnes per year, while provit. A carotenoid content of 550 ppm, then the amount of provit. A, which is destroyed at least 7700 tons per year. That quantity can meet the needs of at least 30 billion people per year with the calculation of the average demand per person of 700 mcg of retinol equivalents per day.
Therefore, research and product development of red palm oil as source of vitamin A should be one focus for researchers and industrial plantations in Indonesia.

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Sunday, October 2, 2011

Palm oil benefits scientific evidences

The Government of Indonesia show scientific evidences of the health benefits of palm oil to Australia. This was done because the draft legislation is being worked by Australia considered to be discriminatory. Government of Indonesia through the Ministry of Commerce has sent a letter of objection and expressed its position on the draft of Food Standards Act Amendment (Truth in Labeling-Palm Oil) Bill 2010 which is currently being discussed intensively in the Australian Parliament. Letter of objection were sent the Government of Indonesia to Australia on June 27, 2011.
Ministry of Commerce press conference in Jakarta, on July 1, 2011 said this because the draft law is discriminatory of Indonesian oil. In addition, the charge is accompanied by something that is not scientific to the impacts of that oil content for human health. The bill says the fat contained in that product is bigger than the oils derived from plants / vegetables. Food Standards Implementation Plan Amendment Bill 2010 by Australia may mislead consumers, so it needs to be refuted and clarified.
It has been scientifically proved that it contains no trans fatty acids, on the contrary contain a high stability for oxidation and MUFA / Omega 9 which is useful for reducing cholesterol and low-density lipoprotein (LDL). Some trading partners of Indonesia has recognized its benefits for health.
Scientific evidences of palm oil benefits is also provided by other countries. United States and Canada even have legitimized labeling of food products that contain it as the product is trans fat free. Currently, the government continued to try to engage in a dialogue with the Government of Australia that the provisions regarding the labeling will not be applied in Australia. The government hopes that the provisions of the Food Standards Amendment (Truth in Labeling-Palm Oil) Bill 2010 is not passed by the Legislative Australia because it would hamper Indonesia's palm oil exports to Australia. Indonesia shows commitment in maintaining an environment that is associated with the oil industry, one of them by implementing the certification scheme of Indonesian Sustainable Palm Oil (ISPO), combined with the imposition of a moratorium on logging forest. This oil is one solution to the issue of food security (food security) and the volatility in food prices facing the world today. This is because one hectare of land can produce 6000 liters of palm oil, it is so much more environmentally friendly and sustainable when compared to rapeseed that produces only 1190 liters / ha, sunflower seed as much as 952 liters / ha and 446 liters of soybean seed / ha.
It also became an important commodity that can meet world food needs in the future. Besides, when studied carefully, the bill implementing the Food Standards Amendment Bill 2010 would violate several provisions contained in the GATT and the WTO. Many research in tropical countries also showed palm oil benefit scientific evidence.

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Friday, July 15, 2011

Airplanes flight using cooking oil as fuel ?

Thomson Airways will become the first British airline passengers which fly using biofuel - in this case cooking oil - when operating the service to fly to Spain on July 28. The airline said that it plans to operate flights from Birmingham to Palma, after receiving a final security clearance. According to the Daily Mail, the flight will operate on a 50/50 mix of Jet A1 fuel and esters of the hydroprocess and fatty acids (Hefa) - made from used cooking oil.
The airline plans to operate weekly flights to Spain using biofuels from September, initially on the same route and switch to Birmingham-Alicante during the winter schedule.
"Because biofuels more commercially available, Thomson Airways plans to expand the use of sustainable biofuels in its fleet over the next three years," said Chris Browne, Managing Director of Thomson Airways.
Earlier, on Wednesday, the Dutch airline KLM has been operating the world's first scheduled flight using the Boeing 737-800 biokerosene carrying 171 passengers across from Amsterdam to Paris, using a mixture of jet fuel and the same cooking oil is planned to be used by Thomson.
Trucks using cooking oil as fuel
After a short time ago the European airlines to use aircraft as fuel oil, now turn the truck in the United Arab Emirates (UAE) using the same fuel.
As quoted by the Associated Press on Monday (04/07/2011), now turn to the United Arab Emirates who use fuel oil, which this time is supplied by well-known fast food company, McDonald.
Dubai-based company, Neutral Fuels, announced that it has reached an agreement to process cooking oil from McDonald's outlets in the UAE to be 100 percent biodiesel fuel, for sending food trucks of McDonald in the United Arab Emirates. Neutral Fuels has tested biodiesel fuel last year and began to cultivate it from the cooking oil from McDonald's since the end of May.
"This is very interesting because in the Arab region has never been anyone tried to use this fuel," said Karl W. Feilder, Chairman of the Neutral Group.
"This is the first time we can produce a fuel which is 50 percent cleaner than normal diesel and has lower carbon content, because it comes from the residual cooking oil," he added.
Parties McDonald said that the move is part of their plan with the UAE in terms of new energy sources.
"McDonald's UAE has demonstrated strong commitment in terms of the environment," said Rafic Fakih, Managing Director of McDonlad UAE.
Neutral Fuels said that they have the capacity to produce 1 million liters of biodiesel a year, and those results can also be duplicated.
Although not described in detail how much biodiesel can be produced from 80 McDonald's outlets in the UAE, but Neutral Fuels said that the amount is sufficient to run the vehicles in the country.

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Sunday, June 19, 2011

The Prospects of Palm Oil as the Substitute For Crude Oil (Biofuel) in Indonesia

Demand for palm oil is increasing at the beginning of May, due to crude oil prices rising have reached its record at $ 114.83 a barrel on May 02, 2011.
If crude oil prices were high then in addition to corn, palm oil can be used as the abundant source of "biofuels" or fuel from crops. So that, the palm oil price will increase steadily.
Palm oil as a substitute for crude oil is the most efficient oil produced in the world, which only takes 0.26 hectares of land to produce one ton of oil, while soybean, sunflower and rapeseed requires 2.22, 2.00, and 1.52 hectares, respectively, for producing the same.
Besides humans nowadays want to be healthy, so they want to reduce the animal fat consumption, , palm oil is used as an alternative cooking oil, because in addition to vegetable oils, its levels of trans fat are also low.

Palm oil prices in Malaysia Market, seen rising, from the July 9, 2010 the price is only MYR 2.237, then it is constantly increasing and new record had experienced its highest price at MYR 3.766 on January 7, 2011, and MYR 3.710 on Feb. 11. It had dropped to its lowest price on March 25 2011 at MYR 3.150, and on May 2 was reached MYR 3.3293 and is predicted to rise when almost all commodities price especially crude oil price increases.
Seeing the growing need of palm oil as the substitute as crude oil, the demand from India, China and the EU will more increase.
Indonesian palm oil production, according to the Head of Marketing and Promotions Gapki (Indonesian Palm Oil Association), Susanto in a press conference at the Gapki Office, Sudirman Park, Jakarta, said that on January 27, 2011, will increase 1.5 million tons or 22.5 million tons in 2011, compared to 2010 (20 , 8 million tons).
This calculation is based on prediction of the additional production from fields planted area of 400 thousand ha in 2007, which is now entering a period of crop. With estimates of productivity 2.5 ton / ha / year, then the land can produce 1 million tons of CPO. In addition, there is still land planted in 2005 and 2006.
From the total Indonesian production of palm oil by 22.5 million tons, according to Susanto, domestic CPO consumption as much as 5.5 million tonnes while the remaining of 17 million tonnes is planned for export.
According to the survey of Indonesia's palm oil production reported by the USDA (United Stated Department of Agricultural) until the end of 2010 estimates as follows: Indonesia 23,600 metric tons and Malaysia 18,000 metric tons.
Gapki (Indonesian Palm Oil Association) based on data from January to December 2010, the volume of Indonesian CPO exports edged up by 127,498 tons or be 15,656,349 tons, compared to the previous year which amounted to 15,528,851 tons. According to Executive Director Gapki, Fadhil Hasan, national CPO export growth driven by increases in the purchase of three major customers: India, China and the EU.
In 2010, the number of CPO and its derivative products export to India as much as 5,793,077 tons of which increase from the 2009 amounted to 5,630,199 tons. Meanwhile, EU countries increase the amount of the purchase of CPO and its derivative products from Indonesia amounted to 3,728,677 tons.
Furthermore, China imported CPO and its derivatives from Indonesia amounted to 2,410,337 tons. Then, Bangladesh buy CPO and its derived products to from Indonesia amounted to 629,529 tons. USA buy CPO and its derived products to from Indonesia amounted to 172,167 tons. Then, Pakistan imported 87,379 tons of CPO. There is also, exports of Indonesian palm oil and derived products to the rest of other countries amounted to 2,889,182 tons.
Fadhil Hasan said the Indonesia national CPO export volume is still dominated by crude palm oil rather than derivative products. From the total exports of 15.6 million tons was still dominated by exports of crude palm oil (CPO), which reached 8,779,940 tons and the remaining derivative products amounted to 6,876,405 tons.
Peasant production in Indonesia increased to meet the global demand driven by demand for biofuels, so that the Indonesian government want to make Indonesia as the largest palm oil producer.
Meanwhile, to meet domestic and overseas need for biodiesel then there are some large factories biodiesel refinery, such as PT. Asianagro (biodiesel refinery), PT. Bakrie Group (biodiesel plants and new plantation), Surya Dumai Group (biodiesel refineries) and global companies such as Cargill (sometimes operate through CTP Holdings of Singapore, to build new refineries and factories in Malaysia and Indonesia, expanding the company's Rotterdam refinery to handle palm oil, plantation acquisition in Sumatra, Kalimantan, Indonesia and Papua New Guinea Peninsula) and Robert Kuok Wilmar International Limited (the plantations and 25 refineries throughout Indonesia, to supply raw materials for a new biodiesel refinery in Singapore, Riau, Indonesia, and Rotterdam).
The development of oil palm plantations, is a contradiction because the dilemma of forest destruction that became the source of water and green earth (humus) so bad for global warming, and resulting in the occurrence of forest fires. The owners of palm plantation should be able to find a solution so that it remains able to develop their palm plantation. It's not an easy task, but they must to do that.

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