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The oil palm plantation sector owns a land bank of approximately 70,000 ha in Malaysia and different regions of Indonesia including Central Kalimantan and East Kalimantan. Of this, approximately 50,000 ha is either under development or are in different stages of maturity.
The sector set up its centralized regional management company in Jakarta recently a centre of excellence equipped with the technical skills & expertise, IT systems, management systems & processes, and research bases that all the operating units can draw upon in conducting their operations.
The plantation sector is conscious of the need to conform to the principles of sustainability in all its management practices and a comprehensive corporate social responsibility programme is underway. It is also now considering entry into joint ventures for plantation development and management as well as value added downstream processing industries to extend its business model along the value chain.
Palm oil is currently the largest produced edible oil globally, and has diverse uses for both edible and non edible purposes.
The global demand for edible oils has seen steady growth during the past two decades with increasing consumption both due to population growth and increase in per capita consumption. However in the last few years the growth in demand for bio fuel contributed further to the growth of global oils and fats industry. The industry grew at an average of 4% annually during the last 3 years, in comparison oil palm has grown at an average of 9.1% annually.
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