Oil Palm Economy of State Building

Oil palm (Elaeis) is an important industrial plants producing cooking oil, industrial oil, and fuel (biodiesel).

Plantations generate huge profits, so much forest and old plantations converted to oil palm plantations. Indonesia is the second producer of palm oil the world after Malaysia. In Indonesia, the spread in the region of Aceh, the east coast of Sumatra, Java, and Sulawesi

Oil palm breeding generative manner. Mature oil palm fruit in certain circumstances the embryo will germinate produce shoots (plumula) and going to the root (radicle).

Palm oil is used as feedstock edible oil, margarine, soaps, cosmetics, steel, wire, radio, leather and pharmaceutical industries. Palm oil can be used for such diverse nature of its designation because it has the advantage that is resistant to high pressure oxidation, a chemical capable of dissolving insoluble by other solvents, have high power layering and does not cause irritation to the body in the field of cosmetics.

The most popular for the processing of palm oil is a fruit. Parts of the fruit produces crude palm oil is processed into cooking oil raw materials and various types of derivatives. Excess oil is vegetable oil from the low price, low cholesterol, and have a high carotene content. Palm oil is also processed into raw materials of margarine.

Core oil feedstock oil into alcohol and cosmetics industries. Bunches of flowers and fruit, much branched. Fruits are small, dark red when ripe. Solid flesh. Meat and fruit skins contain oil. Its oil is used as cooking oil, soap, and candles. The waste used for animal feed. So-called dregs of palm kernel meal was used as one ingredient of making chicken feed. Shell is used as fuel and charcoal.

The fruit is processed by making the soft flesh of the fruit with a temperature of 90 ° C. Meat that has been softened forced to part with the core and shell by pressing the hollow cylinder engine. Meat core and shell are separated by heating and pressing techniques. After that flowed into the mud so the rest of shells will drop into the bottom mud.

Remaining potential oil palm fruit processing into animal feed ingredients and fermented mixture into compost.

Why is palm oil is needed in economic development?

The need for oil palm plantations in the country is still very necessary.

Palm oil prices may provide a guarantee of business for every investor.

Provide convenience and opportunity as widely as possible to investors who will invest in the plantation sector.

Palm oil has a fairly competitive competitiveness compared to other vegetable oils, because;

(1) productivity per hectare is quite high, (2) is an annual plant that is quite powerful against a variety of agro-climate change, and review of the nutritional aspects of palm oil has not been proven to cause increased cholesterol levels even contain beta-carotene as pro-vitamin A.

Various advances have been gained in the development of oil palm plantations and a variety of benefits has to be realized as a result of the efforts of the oil palm agribusiness, support from various parties such as banking, research and development and other economic infrastructure support by the various agencies involved in the development of oil palm agribusiness very important role.

Various benefits are successfully realized, among others; increased income of farmers and communities, increased exports, increased employment opportunities and most importantly is to support efforts in the development of the region to be more developed and developing countries. If we see from the side of environmental protection, oil palm trees which is an annual plant may play a role in the absorption of greenhouse gases or other environmental services like biodiversity conservation or eco-tourism.

Agribusiness development of oil palm in Indonesia has provided a very positive impact in national development, since palm oil is one source of foreign exchange from non-oil sector is quite important.

Palm Productivity of up to 4 tons / ha / year far exceeds the productivity of soybean is only 0.4 tons / ha / year and 0.57 tons of rapeseed oil / ha / year.

Farmers shift from farming rubber and coconut palm is mainly due to palm oil is able to provide higher income than other farms.

Palm plantation development aims to eliminate poverty and underdevelopment, especially in rural areas, in addition also consider the economic equality between classes and between regions. Plantation-based agricultural development in the broad sense aims to improve the welfare of society resulting in a change in lifestyle of the people around him.

Oil palm plantations in Indonesia to bring major changes to the state of rural communities. In addition to the development of oil palm plantations also stimulate the growth of raw materials processing industry of palm oil. Development of oil palm plantations have a double impact on the economy, particularly in creating opportunities and employment opportunities.

Development of oil palm plantations has provided benefits droplets (trickle-down effect), so it can expand the power distribution (power of dispersion) in the surrounding community. The continued development of oil palm plantations, increasingly felt the impact on workers who worked on the plantation sector and derivatives sectors.

These impacts can be seen from the increase in farmers' incomes, thereby increasing the purchasing power of rural communities, both for primary and secondary needs.

Conditions prior to development of plantations with oil revenues after the introduction of activity increasingly diverse society. This diversity further strengthen the stability of the structure of household income due to provide an alternative income for families at other income sources of business failure. The average income of rural people from palm oil by 87.64% and 12.36% of revenues sourced outside of oil palm plantations.

Estate development activity has led to high population mobility. As a result, in areas appear around the development of plantations of economic growth centers in rural areas. These conditions led to increased purchasing power of rural people, especially to the needs of the household routine and the needs of production facilities of oil palm plantations.

Palm plantation development has impacted the economy as a chain, as shown by the multiplier of 2.48. This value can give the sense that any expenditure by oil palm growers in the location and surroundings of Rp 100, a sinerjik makes the velocity of money in these locations and surrounding areas to Rp 248 through other forms of businesses, both real sector and services.

Palm oil can be one of Indonesia's foreign exchange and the barn is driving the Indonesian economy as well as national foreign exchange barn

Advantages of Indonesia on palm oil sub-sector needs to be maintained and developed to improve the welfare of the community. IHKS development (Downstream Oil Palm) can be of key importance in the national economy forward, especially for providers of basic needs of society and industrial raw materials, foreign exchange, job creation, increased value-added palm oil as well as increased food security and national energy.

Oil Palm Economy of State Building