1 Introduction
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condition is in contrast with that in Malaysia whose palm oil export is dominated by
the downstream products.
Therefore, in order to improve Indonesia’s export of palm oil and its derivative
products and to avoid excess supply, palm oil derivative industry should be developed.
This is to improve the added value of oil palm for the most benefit of Indonesian
people. With limited domestic palm oil consumption, the government needs to make
policies that stimulate the improvement of export by stipulating more flexible export
duty tariff and lower export duty tariff for oil palm derivative products than that for
CPO. It also recommended that the government provide more budgets for promoting
Indonesia’s oil palm products overseas by forming a special institution filled in with
oil palm experts.
1.3 Utilization Status of Industrial Oil Plant
1.3.1 Industrial Oil Plant in Europe and America
In the United States, the soybean industry has concentrated production areas, large
production scale, reasonable farming system, high mechanization level, many varieties without chaos, large yield potential, good quality consistency, simple cultivation
technology, relatively low material input and soybean. Utilizing a single bean oil,
soybean meal processing and diversified product development, the United States has
become the world’s largest soybean producer and exporter. In 2004, soybean production reached 79.67 million tons, accounting for 52% of the world’s total production.
It reached the highest level in history; the total soybean production in 2007 was 79
million tons, the output per unit area was 2.79 t/hm
2 , and the planting area was 25.94
million hm
2 . About 55% of the soybeans produced in the United States are used
for domestic processing of oil, 10% for reserves and seed feed, and 35% for export.
The annual export volume is between 24 million and 28 million tons, accounting for
about half of the world total export volume. However, in recent years, the proportion
of US soybean production in the world has shown a downward trend. From 2000 to
2007, the proportion has dropped by 7 percentage points.
The United States adopts diversified subsidy tools for the oil industry, which
is the remarkable feature of the oil policy of the United States. According to the
new American agricultural law of 2002, the subsidies provided by the US government for the production of oil crops are mainly divided into two categories: one is
direct subsidies, namely subsidies directly provided to oil producers, mainly including marketing loan subsidies, loan spread subsidies, direct income subsidies and
countercyclical subsidies. The other is the general service support provided by the
government, including the research, technology promotion, pest control, testing and
inspection, infrastructure construction, environmental protection and other support.
In the case of soybeans, US subsidies for soybean production are on the rise, according to estimates of producer support from the organization for economic cooperation
43
condition is in contrast with that in Malaysia whose palm oil export is dominated by
the downstream products.
Therefore, in order to improve Indonesia’s export of palm oil and its derivative
products and to avoid excess supply, palm oil derivative industry should be developed.
This is to improve the added value of oil palm for the most benefit of Indonesian
people. With limited domestic palm oil consumption, the government needs to make
policies that stimulate the improvement of export by stipulating more flexible export
duty tariff and lower export duty tariff for oil palm derivative products than that for
CPO. It also recommended that the government provide more budgets for promoting
Indonesia’s oil palm products overseas by forming a special institution filled in with
oil palm experts.
1.3 Utilization Status of Industrial Oil Plant
1.3.1 Industrial Oil Plant in Europe and America
In the United States, the soybean industry has concentrated production areas, large
production scale, reasonable farming system, high mechanization level, many varieties without chaos, large yield potential, good quality consistency, simple cultivation
technology, relatively low material input and soybean. Utilizing a single bean oil,
soybean meal processing and diversified product development, the United States has
become the world’s largest soybean producer and exporter. In 2004, soybean production reached 79.67 million tons, accounting for 52% of the world’s total production.
It reached the highest level in history; the total soybean production in 2007 was 79
million tons, the output per unit area was 2.79 t/hm
2 , and the planting area was 25.94
million hm
2 . About 55% of the soybeans produced in the United States are used
for domestic processing of oil, 10% for reserves and seed feed, and 35% for export.
The annual export volume is between 24 million and 28 million tons, accounting for
about half of the world total export volume. However, in recent years, the proportion
of US soybean production in the world has shown a downward trend. From 2000 to
2007, the proportion has dropped by 7 percentage points.
The United States adopts diversified subsidy tools for the oil industry, which
is the remarkable feature of the oil policy of the United States. According to the
new American agricultural law of 2002, the subsidies provided by the US government for the production of oil crops are mainly divided into two categories: one is
direct subsidies, namely subsidies directly provided to oil producers, mainly including marketing loan subsidies, loan spread subsidies, direct income subsidies and
countercyclical subsidies. The other is the general service support provided by the
government, including the research, technology promotion, pest control, testing and
inspection, infrastructure construction, environmental protection and other support.
In the case of soybeans, US subsidies for soybean production are on the rise, according to estimates of producer support from the organization for economic cooperation