Dr. Haryono Indonesia Agency for Agricultural Research and Development
POLICY INITIATIVE ON PALM OIL : POLICY ON UPSTREAM DEVELOPMENT OF PALM OIL Dr. Haryono Indonesia Agency for Agricultural Research and Development Presented on the International Coneference and Exhibition on Palm Oil, Jakarta, May 2014 SCIENCE. INNOVATION. NETWORKS PRESENTATION OUTLINE:
OIL CROPS PRODUCTION IN WORLD MARKET Development of Oil Palm Industry Development of Oil Palm Industry in Indonesia Challenges toward sustainable palm oil GOVERNMENT POLICIES TO SUPPORT UPSTREAM DEVELOPMENT Research and development Support Development of Oil Palm Industry in Indonesia
Distribution of Oil Palm Estate in Indonesia Development of Oil Palm Industri in Indonesia
Production, export & consumption of palm oil (in 000) SCIENCE. INNOVATION. NETWORKS Development of Oil Palm Industry in Indonesia
Current status of oil palm in Indonesia Plantation: 9.15 million ha Productivity: 3.5 ton CPO/ha/y OIL PALM In 2013 Production: 25 million tons Labor: 4.5 million people Ownership: Private 51%; Smallholder 41%; Government 8% Challenges toward sustainable palm oil
INDUSTRIAL CHALLENGES LOW YIELD OIL PRODUCTION (Yield 3.5 ton vs Potential 8.6 ton) HIGH COST OF PRODUCTION HIGH PRESSURE TO ENVIRONMENT & SOCIAL ISO 9001 FOR QUALITY BUT ISO FOR FOOD SAFETY NOT IMPLEMENTED YET LOW PRODUCTIVITY vs POTENTIAL PRODUCTION ILLEGITIMATE PLANTING MATERIAL 3RD & 4TH GENERATION OF OIL PALMS POOR MAINTENANCE OLD PALMS AND IMMATURE PALM SCIENCE. INNOVATION. NETWORKS Challenges toward sustainable palm oil
EXPANSION OF PLANTATION GOVERNMENT POLICY AND PROGRAM GROWING DEMAND PROGRESS IN R&D POOR AGRONOMIC PRACTICES LOW STANDARD IN PLANTATION ESTABLISHMENT AND INFRASTRUCTURE WIDE GAP BETWEEN GENETIC POTENTIAL & REAL PRODUCTION AVAILABILITY AND PRICE OF FERTILIZER SCIENCE. INNOVATION. NETWORKS Challenges toward sustainable palm oil
PEST AND DISEASE PEST & DISEASE AFFECTING PRODUCTIVITY GANODERMA & ORYCTES PROBLEMS BIO-AGENT CONTROL LIMITED DOWNSTREAM INDUSTRY NEW TECHNOLOGICAL PROCESS & REFINERY SUSTAINABLE & GREEN PROCESSES PALM OIL MILL SCIENCE. INNOVATION. NETWORKS Challenges toward sustainable palm oil
SOCIAL ECONOMY Lack of access to technology.Government (Extension Services) has limited coverage. Lack of fund.Smallholder use most their income to fulfill their household needs. Lack of coordination.Big number of smallholder and its scattered location is not easy to coordinate. SUSTAINABLE DEVELOPMENT CONCEPT
Social Political Economy Respects human rights Respects labor rights Enhances political & social improvement Its a labor intensive industry, currently employing 5 million workers Adequate product supply Commercially attractive profit margin 2nd largest sector contributor to the Indonesian export revenues, generated USD 19.1 billion in 2011 Environment Target Objectives : RSPO principles & criteria Respect bio diversity Conservation best practice ISPO compliance GOVERNMENT POLICIES TO SUPPORT UPSTREAM DEVELOPMENT
New government Regulations on Plantations, Land use, Use of Peat lands, Environment Law and Forestry Law and other stricter implementations of laws. Implementation of Indonesian Sustainable Palm Oil System (ISPO) Certification System based on implementation of Indonesian Laws and certification according to international regulations. Productive land Marginal land GOVERNMENT POLICIES TO SUPPORT UPSTREAM DEVELOPMENT
Replanting program for smallholders using better planting materials Regulation to mitigate GHG emission from land clearing of peat soil ISPO as mandatory: progress for sertification & ISPO for smallholders PP No.98/2013 regarding plantation business license (IUP) : Prevent the potential social conflicts by government regulations PP No. 14/ Permentan/OT.140/2/2013 regarding FFB pricing for smallholders with partnership (plasma) SCIENCE. INNOVATION. NETWORKS BEST MANAGEMENT PRACTICES (BMP)
THE KEYS PRACTICES OF BMP BASIC SURVEY (SOIL, SLOPE, DRAINAGE) PLANTING DENSITY & ROAD SYSTEM PLANNING CLEAR ALL TIMBER & VEGETATION AVOID SOIL COMPACTION SOIL CONSERVATION CONSTRUCT (platform 17-36%; teracces >36%) ESTABLISHE LCP LAND CLEARING & PREPARATION GOOD PLANTING MATERIAL GOOD NURSERY SITE ADEQUATE SOIL, IRIGATION CORRECT LINING-UP; SHADING SYSTEM FERTILIZER PROGRAM PEST & DISEASE CONTROL SELECTION (20-25%) NURSERY OPTIMAL PLANT DENSITY AVOID OVER-AGE PLANTING MATERIAL PLANT DURING WET SEASON LARGE ENOUGH PLANTING HOLE (OR HOLE IN HOLE ON PEAT) FIELD PLANTING FILL GAPS BY SUPPLY PALMS APPLY FERTILIZER (CORRECT AMOUNT & TIMING) MAINTAIN LCP (PROVIDE ENOUGH P) FROND CANOPY MANAGEMENT KEEP CIRCLE-WEEDING (AVOID HERBICIDE CONTACT TO FROND) MONITOR & CONTROL PEST & DISEASES IMMATURE PHASE MAINTAIN GOOD GC (AVOID EXCESSIVE WEEDING BY HERBICIDES) ENCOURAGE HOST PLANTS TO IMPORTANT PREDATORS CANOPY MANAGEMENT (40-48 FROND ADULT; YOUNG) SPREAD CUT FRONDS FOR EROSION CONTROL (TO INTER ROW) MULCH WITH EFB (OR CUT FRONDS) IN CRITICAL AREA (STEEPS AREA) MAINTAIN PLANTATION INFRASTRUCTURE HARVEST MANAGEMENT (RIPENESS, NO LOOSING FRUITS) KEEP GOOD TRANSPORT (MINIMIZE TIME BETWEEN FIELD & MILL) MATURE PHASE Research and development Support Planting Material Development
Oil Palm High Quality Cultivar High Yielding, High Oil Quality, Resistance to Serious Pest & Diseases, Adaptive to Env. Stresses Breeding Programme MARKET Planting Material Development Searching for material tolerant to Ganoderma Increasing oleic acid content Molecular Breeding Early selection of type of oil palm Reciprocal Recurrent Selection Backcrossing Classical Breeding Development of transformation method: stilbene synthase Transgenic Transgenic oil palm resistant to Ganoderma High yielding clones: prolonged in vitro stage & number of subculture Tissue Culture Germplasms Germplasm conservation; Analysis of genetic diversity Exploration and exchange; Germplasm enhancement Evaluation of germplasm potential Research and development Support
OIL PALM CLONAL PRODUCTION THROUGH INTENSIVE RESEARCH IOPRI DEVELOP TISSUE CULTURE TECHNOLOGY ELITE INDIVIDUAL PALMS INCREASE PRODUCTION 30% PROD. CAPACITY 1 MILLION RAMETS ANNUALY Research and development Support
IMPROVEMENT OF AGRONOMIC PRACTICES BEST MANAGEMENT PRACTICES PROPER FERTILIZER APPLICATION SOIL & WATER CONSERVATION CARBON EMISSION IN PEAT SOIL Research and development Support
INTEGRATED PEST MANAGEMENT INTEGRATED CONTROL OF ORYCTES RHINOCEROS PRODUCING NEW GENERATION OF PHEROMONE BIOAGENT AND BIOCONTROL Research and development Support
ACTIVATED CARBON-COATED UREA ABSORB & RELEASE N GRADUALLY FOR ROOT ABSORPTION INCREASING FERTILIZER EFFICIENCY USE OIL PALM WASTE (MESOCARP, EMPTY FRUIT BUNCH) ACTIVATED CARBON - REMOVE ORGANIC CONTAMINANTS (PESTICIDE RESIDUES AND HEAVY METALS IN THE SOIL) INCREASE THE DECOMPOSER MICROBE IN SOIL Activated Carbon THANK YOU SCIENCE. INNOVATION. NETWORKS