The Cooperation of Japan-Indonesia in the Oil Palm Sector

DOI

10.2991/icot-19.2019.16How to use a DOI?

Keywords

cooperation, palm oil, investment

Abstract

Indonesia and Japan have established cooperation in various fields including investment and export-import of oil palm sector. Although Indonesia has the largest palm oil production in the world, palm oil exports from Indonesia to Japan are lower than Malaysia. This research aims to explore the cooperation of Japan-Indonesia in the oil palm sector mainly in export-import and investment. Research uses quantitative and qualitative approach. Quantitative data were collected from various agencies in Indonesia while qualitative data conducted with in-depth interviews on various stakeholders. The result of the study shows that in 2018 Indonesia is the second largest supplier of oil palm in Japan with 40.0 percent share while Malaysia is the largest supplier with a 59.1% share. The export value of Indonesian oil palm products to Japan in 2018 is US$ 217.7 million. The trend of oil palm export in the last five years reached 30.24%. Indonesia has big opportunity to increase oil palm exports to Japan because Indonesia is the largest oil palm producer in the world. On the other hand, the demand of vegetable oil in Japan continues to increase both for renewable energy sources, cosmetic industry and cooking oil. Palm oil also has greater productivity compared to other vegetable plants. The development of oil palm exports has some challenges, especially market competition, product quality, export procedures, and negative campaign of oil palm plantation. With the negative campaign, the palm oil market is hampered because many Japanese companies require RSPO certification.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ngadi
AU  - Triyono
PY  - 2019/09
DA  - 2019/09
TI  - The Cooperation of Japan-Indonesia in the Oil Palm Sector
BT  - Proceedings of the International Conference on Trade 2019 (ICOT 2019)
PB  - Atlantis Press
SP  - 74
EP  - 76
SN  - 2352-5428
UR  - https://doi.org/10.2991/icot-19.2019.16
DO  - 10.2991/icot-19.2019.16
ID  - 2019/09
ER  -