2. Indonesia palm oil industry
Indonesia is the largest palm oil producer in the world followed by Malaysia as the world’s second largest palm
oil producer. The two countries produce 85 % of world's oil palm total production. Oil palm demand is projected to
increase from 51 million tonnes today to 75 million tonnes by 2050. Indonesia has contributed 62 % of world’s palm
oil demand, followed by Malaysia with 30 % and other country 8%. Malaysia’s oil palm production predicted
growing slow because of its limited land plantation. While Indonesia predicted to growing rapidly, strengthen its
position as the world leading oil palm producer [15].
The palm oil industry has the important contribution to economic and social development in Indonesia. The
growth of oil palm industry in Indonesia is beneficial in reducing poverty, particularly in rural areas. Palm oil
industry provides employment opportunity through farm cultivation and downstream processing. Palm oil