The Reasons Why Palm Oil Plantations in Malaysia are Better than those in Indonesia

The Reasons Why Palm Oil Plantations in Malaysia are Better than those in Indonesia

InfoSAWIT, JAKARTA -From its geographic, Indonesia and Malaysia tend to have similarities. The two have too in the industrial plantation. One superior commodity planted in both countries is palm oil

In fact, palm oil plantations in Malaysia are more superior than those in Indonesia. Just like the proverb says, similar but not the same. From its geographic and the cultivation, it is not too different. But why is Malaysia better? There might be some factors influencing these.


One main factor why Indonesia fails to overpass Malaysia in palm oil industry is in the area ownership status. Data from General Directorate of Plantation, Ministry of Agriculture showed that the palm oil plantations were 11,67 million hectares in 2016. 4,76 million hectares were cultivated by the people, while the private companies cultivated 6,15 million hectares and government’s plantations were 756 thousand hectares.


The wide plantations where the smallholders (people) cultivate have something to do with the average productivity of palm oil nationally. This happens because the people’s plantations have smaller productivity than it cultivated by the private plantation.


Based on the calculation done by General Directorate of Plantation in 2017, if the cultivation run well based on Good Agricultural Practices (GAP), the productivity could be higher.


The people’s palm oil plantation productivity may be about 2,5 to 3 tons of crude palm oil (CPO) per hectare per year. The numbers are smaller than those cultivated by the private reaching 4 - 6 tons of CPO/hectare/year.


While the palm oil plantation productivity in Malaysia reaches about more than 4 tons of CPO/hectare/year. And in some certain location within good cultivation, it could reach 10 tons of CPO/hectare/year. This is why the plantations in Indonesia are less superior than those in Malaysia.(Rahma Az – Zahra Saroja, Majoring Agribusiness, Faculty of Agriculture, 2015, Universitas Padjadjaran)


This article once published in InfoSAWIT Magazine, August 2018


. . . to get our digital magazine can be read in a InfoSAWIT Store .