Plantation Industry

Indonesia has around 14mn ha of plantation land as of 2002. This came about from owning the world’s second largest plantation for commodities such as rubber, palm oil, coconut and cashew but. It ranked third largest for cocoa, forth largest for coffee and fifth largest for tea plantation as of 2002.

Of the total plantation in Indonesia, 20% of them belong to provide own ship, mainly concentrated in rubber, tea and palm oil as of 2002. The traditional small-scale farming represented 73% of total plantation in Indonesia while 7% of Indonesia’s plantation belongs to the government under its state-owned enterprises, PT. Perkebunan Nusantara 1-XIV.

Palm oil and its competitive advantage

The total market share of palm share of palm oil products rose twofold from 12% to 27% as compared to the slower growth for soybean, which only increased from 27%-30% within the same period. Coconut oil, Groundnut oil and cotton oil had been losing market share form total of 35% within the mentioned period. Moreover, the collapse of Soviet Union also resulted in the decline of sunflower oil from 18% to 11% under similar period.