Kecakapan

2019 Pemecahan Masalah

Case Study:
The Demise of the
Forest People
Febri Monica D.
Dinda Rahmadita
Raisa Aulia Hanifah
Rais Salsa Muhammad
Septiana Crista Debora
Wa Ode Rena Zafirah
Faculty of Engineering
Content
Framework

P A L M
Mind the
Analyze Look for Feasibility
Picture the the Root
Current Cause Solutions
Condition

02
 1
Picture the
Current Condition
04
You can find palm oil
EVERYWHERE

05
 Why has palm oil
production Increase?

06
 What are some of the negative and
positive aspects of palm oil production?

Positive

Palm oil can help fight poverty

07
 What are some of the negative and
positive aspects of palm oil production?

Negative
• Palm oil is a climate killer
• Deforestation
• Biodiversity loss
• Land and water pollution
• Soil erosion

08
What are financial aspect of
palm oil production?

Oil palm is one of the most profitable crops.

Companies average $528–$790 USD per
hectare revenue.
09
What should business presented with the
palm oil industry do?

Smallholders Government

Private

• Smallholders can choose to cooperate with the private sector.

• Smallholders must give away a large portion of their ability to make
decisions in terms of profit and land use in exchange for support
010
 Why is Palm Oil so widespread?

• 70% of palm oil is • Contains equal

being exported proportions of saturated
and unsaturated fat
• Contributes 1.5-2.5%
• Rich in pro vitamin A
to national’s GDP carotenoids and
• The industry provides antioxidant vitamin E
employment across • Decrease the risk of
the country cardiovascular disease
Economic Health
Aspect Aspect
011
 Is it possible to replace palm oil?

Cheaper Easy
than growth
fossil fuel rate

Emit less
particulate Algae Sustainable
pollution
Fuel

Inexpensive Minimum
to produce waste

012
 Why orangutan as an umbrella species
is important to the overall biodiversity of
Indonesia?

• Orangutan requires a large habitat to live in

• Large habitat means larger forest to conserve
• Meaning that the deforestation needs to be
stopped so that orangutan can live, which will
take effect on the overall biodiversity

013
 2
Analyze the
Root Cause
Problem
Defition

Unintegrated CPO Holders

page
015
Ecosystem
Paradigm

30%

70%

Conservation
Cultivation page
016
Conservation in
Indonesia

Virgin forest and No

Deforestation
(UU No. 41/1999)

page
017
Conservation to
Cultivated Area

page
018
Land Opening
Without Burning

PERATURAN MENTERI PERTANIAN REPUBLIK

INDONESIA NOMOR 05/PERMENTAN/KB.410/1/2018

Pasal 8 (1) Pelaku Usaha Pasal 9 (1) Kegiatan

Perkebunan dalam pembukaan Lahan
kegiatan pembukaan Perkebunan sebagaimana
dan/atau pengolahan dimaksud dalam Pasal 8
Lahan Perkebunan wajib ayat (1) meliputi: a.
dilakukan dengan tanpa merencanakan
membakar. penanaman; …

page
019
Palm Oil
Tax
• Before 2014 submission of Fresh Fruit Bunches (FFB) of oil
palm is not subject to VAT or free Tax
• After the issuance of a circular letter from the Directorate
General of Taxes No 24 / 2014 dated 25 July 2014
FFB of palm oil is designated as taxable goods , and palm oil
producers become taxable entrepreneurs, and all activities
carried out on oil palm become taxable services.
This Circular clearly stipulates that each delivery of oil palm FFB
carried out by plantation companies, farmers, or collectors
becomes payable at 10% VAT.
page
020
Palm Oil
Tax
Submission of the main raw materials in the results of oil palm
plantations, namely fresh fruit bunches which have two
conditions as follows :
• If the oil palm plantation company is integrated, or in other
words it has oil palm plantations as well as palm oil mills.
• If the oil palm plantation company is non-integrated, or in other
words does not have a palm oil mill. The company only carries
out the results of the FFB for the sale of the results in the form
of CPO and other derivative products.

page
021
To achieve these targets, Indonesia
will need more biodiesel than the B15 B20 B30
2020 -
country currently produces. 2015 2016
2025

33% production for Domestic

Biodiesel

In 2018, Indonesian palm oil

production totaled 47.43 million
tons which takes 63,3% global palm
oil production.
RSPO
ISPO
29 companies voluntarily obtained RSPO Certification in 2008
• ISPO established in 2011 to improve the sustainability of the
national palm oil industry.
96 companies obtained ISPO ceetification
• Minister of Agriculture with Regulation Number 11 of 2015
concerning the Indonesian Sustainable Palm Oil Certification
System.
ISPO CERTIFICATION IS VOLUNTARY FOR SMALLHOLDER

page
023
 3
Look for Solution
Regulation of
Certification

1. Certification of RSPO for CPO holders is obligatory.

2. Products from palm oil must use CPO from certified
holders.

page
025
Regulation of
Certification

Economic Benefit
• Increase in yields
• Increase in quality
• Price premiums
• Preventing potential market exclusion

page
026
Regulation of
Certification

Small-scale ecological benefit

• Reduced chemical usage
• Soil quality improvements
• Erosion control
• Improve waste management
• Buffer zones near river
Large-scale ecological benefit
• Preservation of biodiversity

page
027
Supporting
Regulation

• Alternative employment in the form of park rangers or similar employment

to provide income as well as to police forested areas for poaching and
burning.
• Incarceration and fees for those caught hunting and/or poaching.
• Incarceration and fees for those caught in slash and burn deforestation.
• implementation of community based forest management, giving the people
ownership and Responsibility over portions of forest with the goal of re-
establishing habitable grounds.

page
028
Recommendation for
Stakeholders

Using BMP method

BMPs are agronomic methods and techniques found to be the
most cost effective and practical means to reduce the gap
between actual and site yield potential and minimize the impact
of the production system on the environment by using external
inputs and production resources efficiently.
A short harvesting interval and full crop recovery is a pre-
requisite for closing current yield gaps at project sites

page
029
Recommendation for
Stakeholders
Using BMP method
Priority 1 – Crop recovery Priority 3 – Soil, moisture, and nutrient
• Adopt a 7-day harvesting interval management
• Maintain frond placement in inter-rows and
• Maintain clean palm circles and clear access paths between palms
• Construct harvesting platforms and harvesters’ • Apply empty fruit bunches
bridges • Maintain fertilizer management to support
• Collect loose fruit in bags large, profitable yields
• Construct adequate drainage
Priority 2 – Canopy management
• Maintain proper pruning
• Remove abnormal and diseased palms
• Supply vacant planting points

page
030
Recommendation for
Stakeholders

Well-tailored training to smallholders

• The content of training sessions should outline the benefits of
RSPO certification, be in line with the demands of the
smallholders but emphasise the ecological dimensions of
sustainability.

page
031
Recommendation for
Stakeholders

Smallholders groups or cooperatives

• Centralisation of agricultural activities within cooperatives offers
potential efficiency increases, decrease mismanagement
without decreasing smallholder participation

page
032
 4
Mind the
Feasibility
From Expansion
to Intensification

Malaysian Palm Area

Indonesian Palm Area

page
034
Conclusion &
Recomendation
Palm Oil is most widely consumed vegetable oil on Earth
The root cause of the problem is unintegrated CPO holders

Regulation of Certification and its supporting regulations are the win-win

solution for all aspects.

Maintaining production of palm oil does not mean more conversion to palm oil
plantation, it can also be intensification.

035
 Thank You

Smallholders Are Key to the

Real Sustainable Palm Oil