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Differences in Organization Structure and the Supply Chain of Private with State-Owned Palm Oil Mills in North Sumatra, Indonesia

Authors :
Gandhi Prima
Fumie Takanashi
Source :
E3S Web of Conferences, Vol 454, p 02025 (2023)
Publication Year :
2023
Publisher :
EDP Sciences, 2023.

Abstract

Indonesia is the world’s largest palm oil producer. The Central Statistics Agency (BPS) noted that Indonesia will produce 45.58 million tons of palm oil in 2022. This number has increased by 1.02% compared to the previous year, which reached 45.12 million tons. The palm oil industry comprises on-farms producing fresh fruit bunches (FFB) and processing industries. The processing industry can be divided into two main divisions: factories that crush FFB into crude palm oil (CPO) and factories that process CPO into various refined palm oil products. There are three actors in Indonesia’s palm oil processing business: the private sector, the government (BUMN), and small farmers. This study aims to find organizational and supply chain differences between state-owned palm oil mill companies (BUMN) and private palm oil mills. Data were obtained from documents, publications, agency research reports, or other supporting sources. This study uses a qualitative descriptive analysis method. The results showed differences in production capacity, organizational structure, and supply chain between state-owned and private palm oil mills. However, the two palm oil mills same produce CPO and palm kernels.

Subjects

Subjects :
Environmental sciences
GE1-350

Details

Language :
English, French
ISSN :
22671242
Volume :
454
Database :
Directory of Open Access Journals
Journal :
E3S Web of Conferences
Publication Type :
Academic Journal
Accession number :
edsdoj.b8c7e685f3eb4c78b32922ecf16e0360
Document Type :
article
Full Text :
https://doi.org/10.1051/e3sconf/202345402025