South-east Asia palm oil reform pressure will grow

Subject Palm oil sector in South-east Asia. Significance Indonesia, the world's largest palm oil producer, said in August that it would accelerate efforts to impose sustainable environmental practices in vulnerable wetlands, following a weak response from growers. The government fears that the industry may be shut out of advanced markets as international certification systems develop, and new plantation areas begin to challenge South-east Asia's dominance of supply. Impacts Utilising new palm oil plantation areas will require new transport infrastructure. Moves to increase use of biofuels will not necessarily benefit the palm oil sector. Global pressure will grow for rigorous certification systems, but this could hit smaller growers with higher operating costs.

Subject Indonesia-Malaysia ties in the light of recent challenges and controversies. Significance The environment ministers of Indonesia and Malaysia have in recent weeks traded barbs over the haze affecting much of maritime South-east Asia. Meanwhile, the EU’s expressed aim to phase out biofuels derived from palm oil has irked both countries, the world’s leading palm oil producers. Impacts The ASEAN Agreement on Transboundary Haze Pollution will be ineffective in tackling the current haze crisis. Malaysian and Indonesian opposition to the EU’s biofuel and trade policies will delay establishment of an EU-ASEAN strategic partnership. Malaysia will likely support Indonesia’s future efforts to gain control of the Riau Islands Flight Information Region from Singapore.


Significance This follows the June 23 'Brexit' referendum, in which 52% of those voting called for the government to organise the United Kingdom's exit from the EU. The vote and subsequent leadership transition pose a foreign policy watershed. Impacts South-east Asian states will seek trade deals with the post-Brexit United Kingdom. The diplomatic importance of UK defence and intelligence aid to South-east Asia will grow. France may become more important for the EU to project its influence in South-east Asia.


Subject E-commerce outlook. Significance Indonesia’s e-commerce sector is booming. The government is adopting business-friendly regulations, but the sector’s future growth still faces multiple constraints. Impacts Jokowi’s recent re-election as president promises continuity to investors and policy inertia in areas such as personal data legislation. The lack of personal data protections makes Indonesia a laggard in South-east Asia. Bricks-and-mortar businesses, facing unequal tax burdens, will pressure the government for a level playing field.


2020 ◽  
Vol 28 (5) ◽  
pp. 33-34

Purpose The author was motivated to focus on the palm oil sector because it is essential to the Indonesian economy. He wanted to discover how to improve performance Design/methodology/approach The author focused on employees of class III-IV who have the authority to manage the natural and HR resources of PTPM XII. He formulated five hypotheses to test on 130 class III to IV employees. His first three hypotheses tested the effect of organizational learning on job satisfaction, organizational commitment and employee’s performance. His fourth and fifth hypotheses tested the effects of job satisfaction and organizational commitment on employees’ performance. Findings Results revealed how organizational learning has a significant effect on both job satisfaction and organizational commitment at the large state-owned palm oil (CPO) producer. The study also indicated that organizational learning has no effect on employee performance. However, the data also revealed that job satisfaction and organizational commitment have a positive influence on employee performance. Originality/value Indonesia is the biggest palm oil producer in the world and the Government wants to improve the state sector’s performance.


2019 ◽  
Vol 11 (2) ◽  
pp. 149-170 ◽  
Author(s):  
Almasdi Syahza ◽  
Brilliant Asmit

Purpose This paper aims to present the development of palm oil sector and future challenge in Riau Province Indonesia, which includes sustainable plantation development. Design/methodology/approach This research was conducted through a survey with developmental research method. The research location is in the Province of Riau, which is the potential development of oil palm plantation. The land areas of Riau are Kampar, Rokan Hulu and Kuantan Singingi, while the coastal areas are Pelalawan, Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Rokan Hilir. The socio-economic and environmental aspects of sustainability level of palm oil plantations were analyzed using a multi-dimensional scaling approach that was modified into a Rap-Insus-Pom. Findings Development of palmoil plantations results in land conversion, posing potential erosio. In anticipating environmental damage, the Government of Indonesia imposes the Indonesian Sustainable Palm Oil (ISPO) policy. The results of ISPO policy show that Indonesian crude palm oil products are environmentally friendly. Originality/value This research is one of few studies that investigate the development of palm oil sector and future challenge in Riau Province, Indonesia. Riau Province still needs 13 units of palm oil mills with capacity of 60 tons per hour. Find strategies to regulate palm oil farming institutions and derivative products to enhance growth and economic development in the region and find production centers and development areas for palm oil local industries in potential regions.


Significance The case’s progress will be watched carefully in South-east Asia, especially in Thailand and Vietnam. In recent years, both countries have imposed increasingly stiff fines and criminal sentences on political activists criticising the government online or using the internet to organise political activities. This downward turn in Thailand is due to continued military rule and the royal transition, while the Communist Party of Vietnam (CPV) finds it increasingly difficult to contain criticism of one-party rule as public discourse moves from print to online outlets. Impacts South-east Asian demand for effective encryption services will grow. Global brands can expect more intensive monitoring of their online advertising in South-east Asia. These brands may, therefore, need to devise alternative forms of advertising, appropriate to local political conditions. Thai internet controls will not ease significantly even after elections likely in mid-2018.


Significance This came after pro-Damascus troops yesterday attacked the Syrian Democratic Forces (SDF), a US-backed, Kurdish-led outfit that has taken much of the territory east of the Euphrates river from IS. It underlines the paradoxes of Washington's new Syria policy, which plans an indefinite military presence that relies on -- but does not fully support -- the Kurds; and opposes -- but does not intend to fight -- the government of President Bashar al-Assad. Impacts Washington's attack on pro-Damascus forces could lead to a longer-term escalation. Reported IS resurgence south of Idlib could potentially force an expanded US scope of operations. US actions in Syria will not stamp out IS ideology elsewhere, particularly in South-east Asia.


Subject Indonesia's infrastructure plans. Significance Indonesia will need over 416 billion dollars for infrastructure development between 2015 and 2019, according to the National Development Board's mid-term development plan published late last year. To that end, President Joko 'Jokowi' Widodo's government is planning to treble public infrastructure spending to 26 billion dollars in 2016, from about 9 billion dollars in 2015. For 2016, the government has pledged to streamline further the planning and funding systems of infrastructure projects, offering increasingly better regulatory and financial terms to private investors. Impacts Cancellation of the Bandung-Jakarta rail project has hit Chinese-Indonesian infrastructure cooperation, but only temporarily. A repeat of such a political debacle, however, could have a more lasting impact on Chinese and Japanese investors' appetite. To make 'new friends' in South-east Asia, Russia will probably invest in Indonesian infrastructure, especially in the energy sector.


Subject Islamic State threat in Indonesia. Significance The attack against a police post and a Starbucks on Thamrin Road in Jakarta on January 14 has resulted in tighter counterterrorism measures, including arrests of suspects and a crackdown against media outlets promoting Islamic State group (ISG). More controversially, the government is considering harsher counterterrorism laws. Impacts The ISG threat in South-east Asia exists independently of a future wave of returning fighters. Greater powers for security forces will be unpopular as these agencies have previously been accused of human rights abuses. Security agencies are likely to be under-resourced.


Significance Thailand is a treaty ally of the United States and occupies an important geostrategic location in mainland South-east Asia, a key theatre of US-China rivalry. Bangkok has burgeoning relations with Beijing. Impacts Thailand’s military-backed government will refuse to give in to popular demands for political reform. As the government struggles to cope with the fallout of COVID-19, the outlook for the Thai economy will remain bleak. Domestic problems will prevent Thailand from exercising leadership in regional forums such as ASEAN.


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