At the moment, despite its price showing a decreasing trend, it is understandable that people still consider oil palm (Elaeis) as the green gold. Despite the rapid fall of the crude palm oil price to the lowest point, the golden shine of it still blinded the money hunters. ‘The palm oil industry is a big business,’ wrote Ellis Brown and Michael F. Jacobson a Cruel Oil ‘magazine’ owned by the Center for Science in the Public Interest (CSPI).
The writing refers to the information based on the data provided by Eric Wakker from AIDEnvironment, Amsterdam. Undoubtedly, the palm plantation growth is still up and running until now. In five years period, for example, this growth has been showing. In 2002, there are only 5, 06 million hectare (ha) of palm plantation, while a year later it grew into 5, 28 million ha. In 2004, the plantation grew up to 5, 40 million ha. The growth continued into 5, 50 million ha in 2005. Then, in 2006, the plantation has grown up to 6, 33 million ha. In that period, the plantation has grown 1, 27 million hectare. Looking from the commodity perspectives, it can be construed that the production for palm oil in the period of 2003-2007 has increased approximately 25, 34 million tons (26,5 %) from the total plant oil production. The Indonesian Palm Oil Board (DMSI) data even reveal that up until 2005, the total width of oil palm plantation in Indonesia is 5, 5 million ha; 676.000 ha or about 12% of which are owned by the state plantation company (PTPN), 2,9 million ha or 53% owned by private companies, and 1,9 million ha or about 35% are owned by the local people. Besides that, according to the government’s policy, around 20-30% of the private-owned plantations own plasma plantation or Membership Primary Union Credit (KKPA). Among the companies that gain the big profit out of the huge palm oil plantation are PT Astra Agro Lestari, Sinar Mas group, PT London Sumatra, PT Minamas Gemilang, PT Asian Agri, PT Duta Palma, PT Bakrie Sumatera Plantation, PT Salim Ivomas Pratama, PT Surya Dumai, that, besides owning the main plantation, also own pretty big number of plasma plantation or KKPA. Indeed, this plant promises quite big profit. Until April, for instance, the CPO trade contract for April delivery, log a price record of RM 2.500 per ton. Even, up until then (March 3, 2008) the price in the Rotterdam Port reach US$ 1.407, double from the price in 2007 at the amount of US$ 700 per ton. From this brief description, it can be viewed that the Indonesian oil palm plantation industry has shown an increasing trend, as well as proving that Elaeis is green gold. The facts also show that in 2007, a number of big plantation company which shares are registered in the Indonesian Stock Market (BEI) gained big profit. Some of those companies including PT Astra Agro Lestari Tbk (AALI), PT PP London Sumatra Indonesia Tbk (LSIP), PT Bakrie Sumatera Plantations Tbk (UNSP), dan PT Sampoerna Agro Tbk (SGRO). Cumulatively, those companies gain profit of Rp. 4.045 trillion in 2007, increase 96,65% from 2006 profit of Rp. 2, 06 trillion. The cumulative sale boosts up to 59, 46% becomes Rp. 20, 57 trillion from previously Rp. 12, 90 trillion. This increase is because the CPO during the year 2007 increased 59% becomes US$900 per ton, even at one point reached US$ 1.000 per ton.
The price raise by Astro Agro Lestari Tbk in 2007, for example, has rewarded the company net profit of Rp 1,9 trillion or 150,7% higher than in 2006. The sale reached the amount of Rp. 5, 96 trillion or 58,6% higher than in 2006, despite 6,2% sale drop of the CPO sale volume from the previous year and becomes 857.824 ton. In the first semester of 2008, the sale is predicted to soar up twice into Rp 4, 41 trillion compared with the same sale at the same period last year of Rp. 2, 39 trillion. This increase of performance is influenced by the CPO price and sale volume raise. PT Bakrie Sumatera Plantations Tbk for six months (January-July 2008) earned a net profit of Rp 326. 45 billion.
This profit is 335% higher than the one they earned at the same period in 2007 at the amount of Rp 75.02 billion. On the first semester of 2008, the sale reached Rp 1, 58 trillion, whilst in the first semester in 2007, the sale was only Rp 638.03 billion. Now, Bakrie Sumatera is targeting 85.8% increase becoming 340.000 ton from 183.039 ton in 2007.
author :Martin Sihombing
about the author : the author is indonesian business journalist
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