COMPLETION REPORTThe Cooperation of Japan-Indonesia in the Oil Palm Sector

Dr. Ngadi (+2)
Researcher
Research Center for Population
Indonesian Institute of Sciences

The Cooperation of Japan-Indonesia in the Oil Palm Sector
Indonesia and Japan have established cooperation in various fields including investment and exportimport 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 cooperationof 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 including: academics,
BKPM, Directorate of Export Development of Ministry of Trade, and other institutions.
The result of the study shows that in 2018 Indonesia is the second largest supplier of oil palm in Japan
with 40.6 percent share while Malaysia is the largest supplier with a 59.1% share. The export value ofIndonesian oil palm products to Japan in 2018 is US$ 217.7 million. Oil palm exports to Japan in the last
five years (2014-2018) increased by an average of 41.9% per year. Indonesia has big opportunity toincrease oil palm exports to Japan because Indonesia is the largest oil palm producer in the world. On theother 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, productquality, export procedures, and environment impact of oil palm plantation. The main competitor for palm
oil exports to Japan is Malaysia, which currently supplies most of the oil palm in Japan. The procedure
for exports in Indonesia also still takes a long time and is uncertain. In relation to environmental impacts,
oil palm is suspected to be one of the causes of environmental damage in Indonesia, so it must be certified.
Even though Indonesia already has the Indonesian Sustainable Palm Oil certificate (ISPO), it is not yet
widely recognized in Japan. They further recognize the Roundtable on Sustainable Palm Oil (RSPO)
certificate, thus becoming an obstacle to palm oil exports to Japan.
Various research collaborations in the oil palm plantation sector between Japan and Indonesia have been
carried out in socio-economic farmers, the development of bio-refinery technology, and the development

of Palm 5.0 with the algae novels technology. Nonetheless, Japan investment in the palm oil sector inIndonesia is still low. Most of the investment from Japan in the oil palm sector is processing oil palm into
its derivative products. Based on these facts the authors plan to continue to encourage increased
cooperation between Indonesia Japan in the palm oil sector through seminars and research.

Publication of the Results of Research Project:
Verbal Presentation (Date, Venue, Name of Conference, Title of Presentation, Presenter, etc.)
Date: September 4, 2019;

Location: Doubletree by Hilton Hotel Jakarta;

Title: Increasing The Cooperation of Japan- Indonesia in the Oil Palm Sector;

Presenter: Triyono

Thesis (Name of Journal and its Date, Title and Author of Thesis, etc.)
Book (Publisher and Date of the Book, Title and Author of the Book, etc.)
Title: The Cooperation of Japan- Indonesia in the Oil Palm SectorAuthors: Ngadi, Triyono, Andy Ahmad Zaelany

Publisher : IPB Press
Date of the Book : on process