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Discover Palm Oil Downstream Product Misunderstanding that Reached US$ 62,9 Billion in 2023

Doc. InfoSAWIT
Discover Palm Oil Downstream Product Misunderstanding that Reached US$ 62,9 Billion in 2023

InfoSAWIT, BANDUNG – In a Workshop Jurnalis Industri Hilir Sawit that InfoSAWIT attended on Thursday (1/2/2024) in Bandung, Chairman in duty of Indonesian Palm Oil Board (IPOB), Sahat Sinaga discussed the general misunderstanding about palm oil downstream sectors which the uses were for palm cooking oil.

He said though crude palm oil (CPO) was considered to have nutrient loss when being processed to be palm cooking oil because of high temperature, the facts showed, CPO has β-carotene, tocopherol, and tocotrienol in relatively high numbers. β-carotene is the source of vitamin A and it is anti-oxidant while tocopherol and tocotrienol have vitamin E and anti-oxidant effects.

The interesting one is that Sinaga told palm oil could produce vitamin A 15 times more than carrot, and vitamin E twenty times more than olive oil. Though olive oil is much more expensive than palm oil, vitamin E in palm oil is higher than it in olive oil.

He also told that many might not know that palm oil is the one of vegetable oil which is similar to breast milk. Within C18, Octadecenoic Acids reaching 36,3 percent, palm oil has the mainstay that other vegetable oils do not have.

Palm oil downstream sectors within nowadays technology deliver the positive for the industries. In 2023, they reached US$ 62,9 billion with the exports about US$ 38,4 billion, in the domestic they reached US$ 21,4 billion, and biomass reached US$ 3,1 billion. Though they escalated, palm oil industrial performance was not as good as Malaysia for the country has had about 260 derivative products.

“Downstream products were only 54 in 2007 but escalated to be 179 products in 2023. There would be many chances to develop and increase revenue from our palm oil,” Sinaga said.

He also told it needs special board to optimize palm oil industrial progress. This is crucial so that the regulations would not be overlapping and blocking the progress. Besides, he continued, security and stable regulations in Malaysia support their palm oil industrial progress.

Innovative process to get palm oil products would deliver business profits up to US$ 107,02 billion in 2028 within 70,1 percent progress. The successful key, he thought, is by involving smallholders in replanting program that should lay on about 485.000 hectares per year and take advantage on abundant biomass.

By these strategic ways and right support, palm oil industries in Indonesia would have the big potential to keep growing and contributing significantly for the economy in this country. (T2)