1. CONSEPT OF ACTION PLAN Palm Oil Industry Development Coordinating Ministry of Economic Affairs Monday, 26 th May 2014

2. BACKGROUND Gaining support from the President of Indonesia has motivated the palm oil industry to grow even more Commitment to keep and maintain Indonesia as the world's largest producer of Palm Oil, both CPO, derivative product diversification, Minister for Economic Affairs, called for immediate action plans prepared priority to encourage the development of the palm oil industry

3. BACKGROUND The Palm oil industry is the second largest contributor to the national economy, after the oil and gas. It is planned to issue the Presidential Instruction specifically on the palm oil industry

4. 1-PUBLIC POLICY Palm oil is a national strategic commodity Palm oil shall be introduced and included in the curricula of elementary and high school education. Palm oil is environmentally friendly, improving welfare and healthy

5. 2-PLANTATION  Palm Oil rejuvenation, Palm Oil revitalization and development of high-yielding varieties  Building a partnership between Palm Oil Mill and Farmers  Liability management of Palm Oil Mill Effluent and Palm Oil’s waste for energy and reduction of carbon’s emission  Integration palm oil with cattle farming  The need to have a competitive funding system globally

6. 3-DOWNSTREAM  Implementation of ISO standardization, GAP (Good Agriculture Practices) and GMP (Good Manufacturing Practices)  Management of used cooking oil  The value chain efficiency from upstream to downstream  The setting up of Market Price Index  improvement of industrial technology innovation and product formulation oleofood /oleochemical  Setting up obligation to use at least 20% biodiesel (B20)  Increasing R & D and Incentive scheme for downstream industries  Facilitation and coordination for the development of palm oil’s downstream industries

7. 4-TRADE  Promotion and expansion of expansion of export of downstream products and international cooperation  Economic diplomacy for fair trade both for the tariff barriers and the non-tariff barriers  The CPO duty tariff is adjusted and accordance to the global market  The issuance of Finance Minister Regulation about price and incentives for biodiesel

8. 5-ISPO (Indonesian Sustainable Palm Oil)  Accelerate ISPO certification  ISPO worldwide promotion  The institutional strengthening of ISPO  Fiscal incentives for ISPO certified company  ISPO for smallholders  Assisting farmers to get ISPO certification

9. 6-HANDLING NEGATIVE CAMPAIGN  Advocacy and negotiations on palm oil to abroad  Coordination among stakeholders for the promotion and positive campaign of palm oil to abroad  Active in the international forum on palm oil (as Indonesian delegation)

10. 7-STRENGTHENING INFRASTRUCTURE/ MASTERPLAN ACCELERATION AND EXPANSION OF INDONESIA ECONOMIC DEVELOPMENT (MP3EI) 7-STRENGTHENING INFRASTRUCTURE/ MASTERPLAN ACCELERATION AND EXPANSION OF INDONESIA ECONOMIC DEVELOPMENT (MP3EI)  Acceleration of infrastructure development in the corridors of Sumatra and Borneo  Improving both quality and quantity of the infrastructure  MP3EI as a basis for creating Sei Mangke, Kuala Enoch, Dumai and Maloy as a “model”of palm cluster

11. 8-INSTITUTIONAL  To develop the center of excellence for oleo-chemical industry  The role and function of DMSI  Synchronization and harmonization of central and regional policy  The plantation fund  The regulation on the utilization and recycling of palm’s solid waste

12. 9-HUMAN RESOURCES  High qualified Human Resources from upstream to downstream  Improving the quality of Human Resources  Dissemination information on palm oil to ambassadors and officials  Dissemination information on palm oil to civil servants and private sectors  Regulation of the utilization of palm’s solid waste

13. 11-DATA AND INFORMATION  Compulsory data reporting and information on industries (production and the volume of domestic and foreign transaction)  One gate information by WEB which include "environmental and social issues" and "health & biodegradable"  Socialization or information dissemination regarding palm oil to schools  Development of the data center

14. 12-RESEARCH AND DEVELOPMENT  Coordination in R & D (cultivation, diversification, plant design and machinery) that are environmentally friendly  Increasing the role of R & D, PPKS and MAKSI  Cooperation between University and R &D institutes for innovation and technology  Development of Bioenergy Palm Oil research and Advanced Biodiesel