The palm oil industry is still one of the driving forces of the national economy. Even during the Covid-19 pandemic, the palm oil industry, both upstream and downstream, was able to show solid performance.
Senior Economist at the Institute for Development of Economics and Finance (INDEF) Fadhil Hasan said the palm oil industry has become a pillar of the economy through export contributions when the Indonesian economy is under pressure due to the Covid-19 pandemic.
"In the downstream sector, palm oil also drives the food industry, oleochemicals, to biofuels for the transportation sector," he said in a discussion on the National Palm Oil Downstream Industry and Sustainability Challenges conducted online, Wednesday (4/8/2021).
The large contribution and potential of the development of the palm oil industry in Indonesia is also accompanied by big challenges. Fadhil said that the issue of sustainability is the main challenge for the palm oil industry today.
“In the last decade, the palm oil industry in Indonesia has undergone a significant transformation. With a commitment to sustainability, the palm oil industry will continue to grow,” he said.
RGE Indonesia Palm Business and Sustainability Director Bernard A. Riedo said a commitment to sustainability in the operations of the palm oil industry is a must.
"Therefore, the sustainability aspect is at the core of a positive transformation in the supply chain of the Indonesian RGE palm industry," he said.
Through Asian Agri in the upstream sector and Apical in the downstream sector, RGE Indonesia is one of the largest producer and exporter groups of palm oil in Indonesia. Its export market reaches more than 30 countries on five continents.
Its commitment and sustainability practices have made the RGE Group a trusted supplier of raw materials by global giants such as Unilever, Nestle, P&G, Kao, and dozens of others.
According to Bernard, the challenge in the palm oil business today is to be able to answer the issue of sustainability, not only to meet the demands of the global market, but also to carry out the company's commitments. "We adhere to the 5C principles, namely Climate, Country, Community, Customer, and Company," he said.
Palm Oil Competitiveness
Sustainability Director of Apical Group Bremen Young added, the competitiveness of palm oil which is much higher than other vegetable oils makes the demands for sustainability aspects are also very high, both from the global market, government, and environmentalists.
Therefore, continued Bremen, Apical Group applies a sustainability approach methodology to ensure transparency and traceability of palm oil supply sources.
"We want to ensure that the supply comes from plantations that carry out the principles of sustainability, including through the protection of conservation areas, protection of peatlands, as well as having a positive impact on the communities around the operational areas," he said.
Bremen said that the implementation of this commitment makes Apical's products acceptable in the international market and supplies to Europe, America, Asia, Australia and Africa. Innovation to ensure that the company continues to run. "One of them is through the use of satellite technology for monitoring and platforms for leveraging supply sources," he said.
Apical Group is one of the largest exporters of processed palm products in Indonesia. Apical Group's palm and biodiesel processing facilities are spread across Indonesia, China and Spain. For the domestic market, Apical entered the bulk cooking oil segment as well as the retail market, including the Camar and Harumas brands, as well as Vitas Margarine. Recently, Apical's cooking oil products have also penetrated the Indian market through a joint venture with ANA.
