Unfinished journey (39)

Prof.Dr. Soemitro Djojohadikoesoemo

Unfinished journey (39)

(Part Nine thirty, Depok, West Java, Indonesia, September 5, 2014, 2:01 pm)

Indonesian Economic Expert Prof.Dr. Soemitro Djojohadikoesoemo

in a press conference once told me, that if you go into the business of doing business is difficult rivaled the producers of other advanced countries, he was member of examples of business in oil palm agricultural industry, other plants can not grow in other countries could also be a commodity future .

 Now what is disclosed Soemitro become a reality, Indonesia is now exporting half of the global palm oil demand, which is now not only just intended for cooking oil in the kitchen, but it will be the fuel of the future is processed into biodiesel, the market for the absorption populous country in the world such as China, India and Russia.

The results also prove the cooking oil from palm oil lower cholesterol than cooking oil from coconut and corn.

Palm Oil

Soemitro Djojohadikoesoemo

From Wikipedia, the free encyclopedia

Soemitro Djojohadikoesoemo

Sumitro Djojohadikusumo Suara Merdeka 2 Apr 1952 p1.jpg

8th Indonesian Minister of Finance

In office

April 3, 1952 – July 30, 1953

President   Soekarno

Preceded by       Jusuf Wibisono

Succeeded by    Ong Eng Die

In office

August 12, 1955 – March 24, 1956

President   Soekarno

Preceded by       Ong Eng Die

Succeeded by    Jusuf Wibisono

7th Indonesian Minister of Industry and Trade

In office

September 6, 1950 – April 27, 1951

President   Soekarno

Preceded by       Tandiono Manu

Succeeded by    Sujono Hadinoto

In office

June 6, 1968 – March 28, 1973

President   Soeharto

Preceded by       M. Jusuf

Succeeded by    Radius Prawiro

Personal details

Born May 29, 1917

Kebumen, Central Java, Dutch East Indies

Died  March 9, 2001 (aged 83)

Jakarta, Indonesia

Spouse(s) Dora Sigar

Children     Prabowo Subianto

Hashim Djojohadikusumo

Maryani Djojohadikusumo

Bianti Djiwandono

Alma mater         Sorbonne University

Religion     Sunni Islam

Prof. Dr. Raden Mas Soemitro Djojohadikoesoemo (often spelt Sumitro Djojohadikusumo) (born in Kebumen, Central Java on May 29, 1917 and died in Jakarta on March 9, 2001) was one of Indonesia's most prominent economists. During his lifetime Sumitro held several prominent roles including the Dean of the Faculty of Economics at the University of Indonesia.

Soemitro's children include Prabowo Subianto and the Indonesian entrepreneur Hashim Djojohadikusumo. Bianti Djiwandono, his daughter is married to the former Governor of Bank Indonesia, Soedradjad Djiwandono. His son Prabowo was briefly married to Titiek Hediati, the daughter of former Indonesian president Suharto.

Early life

Sumitro was born in Kebumen, Central Java, on May 29, 1917, the eldest son in an aristocratic Javanese family. Soemitro was the son of Margono Djojohadikusumo, the founder of Bank Negara Indonesia and the first chief of DPAS and member of the Committee for Preparatory Work for Indonesian Independence (Badan Penyelidik Usaha Persiapan Kemerdekaan Indonesia, or BPUPKI). He spent his childhood in Java before moving to Europe, where he received his academic training, first at the prestigious Sorbonne University in Paris and later at Economische Hogeschool (the College of Economics) in Rotterdam, the Netherlands.

He first won recognition as an economist at the age of 29, serving as an adviser to the Dutch delegation attending the United Nations Security Council meeting in London in 1946.

He married his wife, Dora Sigar who was born in North Sulawesi, in 1947.

Government and political career

In March 1946 he returned to the newly independent Indonesia. He served in a string of successive governments, starting as an assistant to prime minister Sutan Sjahrir. In 1948 he was the deputy chief delegate representing Indonesia at the UN Security Council meeting at Lake Success.

Palm Oil Plantation

Following Indonesia's international recognition in December 1949, Sumitro became chargé d'affaires at the Indonesian Embassy in Washington, before becoming one of five experts assisting the UN secretary-general.[1]

He went on to serve as the a Cabinet Minister for both Sukarno and Soeharto.

During the late 1950s, he became involved in what is known as the PRRI-Permesta Affair, in which several disgruntled provinces in Sumatra and Sulawesi declared their independence from the central government in Jakarta. The movement was quickly crushed and Sumitro fled abroad.

A brief summary of Soemitro's career is as follows:[2]

1946: Staff assistant to Prime Minister Sutan Sjahrir.

1947: President Director, Indonesian Banking Corporation.

1948-1949: Deputy head, Indonesian delegation to the UN Security Council (deputy to L.N. Palar)

1949: Member, Indonesian delegation to the Round Table Conference in The Hague, Netherlands.

1950: Charge, Indonesian Embassy in Washington, DC.

1950-1951: Minister of Trade and Industry, Natsir Cabinet.

1952-2000: Professor, Faculty of Economics, University of Indonesia.

1952-1953: Minister of Finance, Wilopo Cabinet.

1955-1956: Minister of Finance, Burhanuddin Harahap Cabinet.

1958-1961: Joined the PRRI/Permesta movement in opposition to the Jakarta central government.

1958-1967: Lived out of Indonesia, working as an economic consultant in Malaysia, Hong Kong, Thailand, France and Switzerland.

1968-1973: Minister of Trade in the First Development Cabinet appointed by president Soeharto.

1973-1978: Minister for Research in the Second Development Cabinet.

1986: Chief Commissioner, PT Bank Pembangunan Asia; also active in the LP3ES NGO think tank in Jakarta.

1985-1990: Chair, Board of Supporters, Mercu Buana University, Jakarta.

Contributions to Indonesian higher education[edit]

Soemitro played a prominent role in the Faculty of Economics at the University of Indonesia (FEUI). Post-independence Soemitro was the only Indonesian with his doctorate in economics. Sumitro, as the only teacher with an economics doctorate, had to turn to foreign lecturers from the Netherlands and lecturers from other faculties to assist in educating the students at FEUI. As tensions grew and Dutch professors were pushed out of their roles in the university, Sumitro recognized the need for more Indonesian economists. Soemitro called upon the Ford Foundation to help him to send a group of promising Indonesian students to the University of California, Berkeley to study economics. This group of students, known as the Berkeley Mafia, returned to Indonesia to serve in several high profile government positions and are credited as the architects of the Indonesian economy. The group included Widjojo Nitisastro, Mohammad Sadli, Emil Salim, Subroto, and Ali Wardhana.

Despite his very public socialist views, Sumitro was asked to be one of the founders of the Indonesian Islamic University (Universitas Islam Indonesia, UII) in Yogakarta. Without buildings, Sumitro and his colleagues taught their classes in a mosque.

Palm Oil for cooking

Wednesday, 13 November 1996

       

Sumitro: Leakage rate has been more than 30%

      _________________________________________________________________

                                       

    JAKARTA (Media): Indonesian economic Begawan Prof. Dr. Sumitro

    Djojohadikusomo indicated leakage rate of development budget

    which in 1993 had reached 30% now more enlarged again.

    However, a senior economist this statement did not elaborate.

    

    Prof. Sumitro Djojohadikusomo say, 30% of which was allegedly leak

    in 1993 was the result of the development of infrastructure and

    corruption. "Nepotism at the central level has been imitated by Region,"

    he gives a reason.

    

    Sumitro argued that answering the press yesterday in Jakarta

    after giving a presentation about his views on literary

    France, Andre Malraux at the French Cultural Center in Jakarta.

    

    Some time ago Sumitro also been expressed about the magnitude

    leakage of the development budget. If the leak can be

    reduced, he said, the success of the development will be much more

    increased compared to that achieved now.

    

    When the remarks, the Chairman of the House of Representatives FPP Hamzah Haz

    immediately sent a letter to the economic guru requested a hearing

    discussing the leakage rate. However, through its letter

    Sumitro rejected with the reason being sick.

    

    While on the high bank interest rates Sumitro said

    interest can be derived from any deregulation in various

    field carried through to completion.

    

    However, these economists believe that the Indonesian government was able to

    overcome the economic crisis, including the control of interest rates. "I

    sure, the government can handle it, "he said.

    

    Last week Sumitro also explains the interest rate

    Research and Technology Minister BJ Habibie expressed by too high and should be

    lowered because it threatens the business and export. According to

    Sumitro, if the interest rates lowered the country's economy could

    bankrupt.

    

    For that Sumitro give some suggestions with regard to

    perbaikkan Indonesia's economic performance. The suggestion is that the government

    Do not focus so much on economic growth alone.

    "The growth that is now about 7% was already good," he said.

    

    What to do now is create jobs for

    it is a way out to reduce economic disparity.

    "Productive employment is the answer to the issue

    gap, "he said.

    

Palm oil Biodiesel

    Sumitro not only an economic, but also a lover

    culture. In his presentation, he expressed his admiration for Andre

    Malraux met in France before World War II.

    

    Acquaintance with Andre Malraux occurs when a riot

    politics in some places in the world such as Japan to attack China

    (1931/1932), German occupation of Czechoslovakia and some events

    else in Europe.

Palm oil production in Indonesia

From Wikipedia, the free encyclopedia

Left: Traditional oil palm plantations that are managed and owned by ordinary people in Kampar regency, Riau. Right: View of palm oil plantation in Cigudeg, Bogor

Palm oil production is important to the economy of Indonesia as the country is the world's biggest producer and consumer of the commodity, providing about half the world supply.[1] Oil palm plantations stretch across 6 million hectares. The country plans by 2015 to add 4 million additional hectares towards oil palm biofuel production.[2] As of 2012, Indonesia produces 35 percent of the world's certified sustainable palm oil (CSPO).[3]

In addition to servicing traditional markets, Indonesia is looking to put more effort into producing biodiesel. China and India are the major importers of palm oil, accounting for more than a third of global palm oil imports.

Production[edit]

Production of palm oil in Indonesia has, since 1964, recorded a phenomenal increase from 157, 000 tonnes to 31 million tonnes in 2013.[4] Palm oil accounts for 11% of Indonesia's export earnings of $5.7bn. Maintaining its status as the world’s largest producer of palm oil, Indonesia has projected a figure of 40 million tonnes by 2020. In this context, the global production figure given by Food and Agricultural Organization (FAO) was 50 million tonnes for 2012, double the production of 2002.[5] This increase is reflected also in increases of Indonesia’s production of palm oil for the same period, from 10.300 million tonnes in 2002 and 28.50 million tonnes in 2012.[4] The entire production of the oil is derived from Indonesia's rainforest which ranks third in the world, the other two being in the Amazon and Congo basins. According to the Indonesian Palm Oil Association, one third of this production is attributed to smallholder farmers and the remaining to the multinationals. Palm trees that were planted about 25 years ago have an annual average production rate of four tonnes of oil per hectare and now there are plans to increase this by introducing newer varieties which could double the production rate per hectare.[5] Borneo and Sumatra are the two islands which account for 96 percent of Indonesia’s palm oil production.[6] As of 2011, area under oil palm plantations was 7.8 million hectares of out of which 6.1 million ha were productive plantations under harvest and thus Indonesia has become the global leader in Crude Palm Oil (CPO) production. According to the World Bank reports nearly 50% of CPO produced in the country is exported in an unprocessed form, while the remaining is subject to processing into cooking oil out of which about 50% is exported and the balance consumed is locally[7]

Uses[edit]

Palm oil is an essential ingredient in the manufacture of myriad of products such as many types of chocolates, chewing gum, lipstick, washing powder,[5] doughnuts, soap, and biodiesel.[6] Palm oil use in Asia is very wide as cooking medium and for noodles which has created a $44 billion industry. According to trade reports one third of palm oil production in the world is imported to China and India.[6]

Companies[edit]

Major local and global companies are building mills and refineries, including PT Astra Agro Lestari Terbuka (150,000 tpa biodiesel refinery), PT Bakrie Group (a biodiesel factory and new plantations), Surya Dumai Group (biodiesel refinery).[8]

Cargill (sometimes operating through CTP Holdings of Singapore) is building new refineries and mills in Malaysia and Indonesia, expanding its Rotterdam refinery to handle 300,000 tpa of palm oil, acquiring plantations in Sumatra, Kalimantan, and Papua New Guinea.[citation needed]

Robert Kuok's Wilmar International Limited has plantations and 25 refineries across Indonesia, to supply feedstock to new biodiesel refineries in Singapore, Riau, Indonesia and Rotterdam.[8]

Indonesian palm oil producer Triputra Agro Persada will reportedly increase its planted area by about two-thirds from 2013 by 2015.[9]

In August 2011, the governor of Aceh issued a permit for Indonesian palm oil firm PT Kallista Alam to develop some 1,600 hectares in Tripa.[10]

Environmental concerns[edit]

Remains of peat forest in Indragiri Hulu, Riau Province, Indonesia to make way for oil palm plantation.

See also: Social and environmental impact of palm oil

Wild Orangutan spotted in Kutai National Park, Borneo, Indonesia.

Sumatran Tiger (Panthera tigris)

A major environmental threat that palm oil production faces is the destruction of rainforests (source for palm oil) in Indonesia and Malaysia (according to reports deforestation accounted for a minimum of 8 million hectares of forest land in Indonesia[7]). This deforestation has also resulted in serous threat to endangered species such as pygmy elephants and Sumatran tigers, which live in these forests. Also reported are human rights abuse in the form of using child labour and "debt bondage" in the plantations of Borneo and Sumatra.[6] According to a Greenpeace report palm oil production contributed deforestation of 25% of forest land in Indonesia during the period 2009 -2011, which has proved to be a serious threat to the habitat orangutan and the Sumatran tiger which are for endangered species.[5][clarification needed]

In Kalimantan, deforestation for oil palm plantation development is said to endanger the living space of indigenous tribes and orangutans.[11][12]

Remedial measures[edit]

The Government of Indonesia has taken action to ensure sustainability. A moratorium on the clearing of new forest has become effective from 2011 which will be effective till 2015. The Indonesian Palm Oil Board has planned to adopt new planting materials on the older plantations which could double the yield from the present annual rate of four tonnes of oil per hectare. In addition, the government will encourage development of degraded lands found suitable to grow palm trees. This area is reported to be 14 million hectares in the four provinces of Kalimantan, on the Indonesian part of the Borneo island.[5]

iputan6.com, Jakarta surge in the consumption of palm oil for biodiesel processing in Indonesia is predicted to slow the rate of growth of exports of agricultural commodities in 2014 delivery failure increase palm oil for the first time experienced by Indonesia since 2010.

As quoted by Bloomberg on Monday (03/03/2014), Executive Director of the Indonesian Palm Oil Association said Fadhil Hasan, the total exports of palm oil this year is predicted to reach 21 million metric tons, equivalent to the number of deliveries in 2013.

He explained that the total consumption increased by 38% to 11 million tonnes. Meanwhile, total production increased daro 26.5 million tons to 31 million tons.

Data United States Department of Agriculture (USA) shows, the high use of biodiesel can change the title of the original Indonesian palm oil supplier in the world's biggest consumer of these in the global arena.

Indonesian palm oil prices continue to soar since October and reached its highest level in 2012 was due to the hot weather threatens crops in Indonesia and Malaysia recorded 86% supply of palm oil inventories in the world.

The two countries also need more palm oil to be processed into biodiesel.

"Initially orientation is always to export palm oil., But now we see domestic consumption and biodiesel as the two most significant factors affected if is government is totally committed to the program," said Hasan.

This year, approximately 3.4 million tonnes of palm oil will be processed into biodiesel. The Indonesian government has ramped up the amount of biodiesel blended with diesel increased to 10%. Meanwhile, PT Pertamina had already secured 2.4 million kiloliters of biodiesel. (Continoe)