Indonesia has large natural and human resources. These two resources support extraordinary potential for Indonesia to become an exporting country, both in global and regional markets. In the global market, sustainable management and marketing of plantation, agricultural, forestry and marine products can position Indonesia as a highly competitive producer in the global market.
Indonesian Largest Commodity
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The Commodities We Sell
Crude palm oil or palm oil is one of the most widely consumed and produced oils in the world. This cheap, easy to produce and very stable oil is used in a variety of foods, cosmetics, hygiene products, and can also be used as a source of biofuel or biodiesel. Most palm oil is produced in Asia, Africa and South America because palm oil trees need warm temperatures, sunlight and high rainfall to maximize their production.
Indonesia is one of the largest fishing countries in the world and has for decades been the country with the largest seaweed cultivation. Indonesian seaweed farmers and entrepreneurs have unique expertise in processing seaweed which is then processed into value-added products from hydrocolloids, such as carrageenan and gelatin. This industry provides great benefits to people living along the 81,000 km of Indonesia’s coastline by providing an alternative livelihood to fishing which can reduce illegal fishing.
Indonesia has abundant fertile land and is the main supplier of various tropical agricultural products on the global market. There is a very high global market demand for organic spices, essential oils and extracts used in food, cosmetics and medicines. The production of these natural materials not only provides income for the community, but also protects biodiversity. The Indonesian Essential Council and the Ministry of Cooperatives and SMEs of the Republic of Indonesia are facilitated by SIPPO in developing knowledge and expertise in export promotion as well as market access for their respective members.
Demand for processed wood products that are produced sustainably is growing rapidly in the global market. A processed wood business that utilizes fast-growing trees planted in community forests can contribute to poverty alleviation. Community forests play a major role in increasing income for small farmers and reducing deforestation of tropical forests. Processed wood products from Indonesia are generally made from sengon wood, jabon wood, rubber wood, balsa wood, kapok wood and bamboo.
The textile industry in Indonesia is a foreign exchange earner which is increasing in number. Textiles will remain a mainstay industry in the future because it is able to absorb a large number of workers compared to other industries. The modern textile industry is a capital and labor intensive industry. The investment required includes machines, factory equipment and large areas of land. Most of the modern textile industry is operated by large investors, including foreigners.
Rubber is a hydrocarbon polymer formed from a milky emulsion (known as latex) which is obtained from the sap of several types of rubber tree plants but can also be produced synthetically. More than half of the rubber used today is synthetic, but several million tons of natural rubber are still produced each year, and it is still an important material for several industries including automotive equipment, hospital equipment, household equipment, and military equipment. A number of locations in Indonesia have land that is suitable for planting rubber, most of which are in Sumatra and Kalimantan.
Indonesia, as the world’s third largest pulp and paper producer, continues to increase production capacity to pursue efficiency levels. The paper industry in Indonesia has high competitiveness in the world scope. At the Asian level, Indonesia is in third place, below China and Japan. Meanwhile in ASEAN, Indonesia is in first place. In Indonesia, the number of paper and pulp industries has reached 62 companies, with an industrial capacity of 7.93 million tons of pulp/year. Meanwhile, the national paper industry capacity reaches 12.98 million tons of paper/year.