04/05/2012 (Researchandmarkets) - Indonesia is one of the world's largest producers of palm oil and the industry has been the economy's most valuable agricultural export sector for the last decade. The attractive returns, strong demand and high prices of palm oil in the international market have encouraged investment in the Indonesian palm oil industry, resulting in significant rural economic development and poverty alleviation.

The Indonesian palm oil industry experienced significant growth in recent years. Indonesia emerged the world's largest producer of palm oil, surpassing Malaysia in 2006, with an annual production of 20mn tonnes, representing nearly half of the world total. Forecasters expect the country's production to double to 40mn tonnes by 2020. The growth in demand remains solid in Indonesia with palm oil consumption of 6.7mn tonnes in 2011, up 23% y/y.

The country should be cautious, however. Despite the expected increase in future demand, restrictions on the conversion of forests to oil palm plantations in Indonesia would reduce the availability of fertile land and impede expansion of the industry. Government policies should aim to improve productivity, particularly among smallholders, and implement pro-industry growth policies.

Current leading players in the market include PT Astra Agro Lestari Tbk, PT London Sumatra Indonesia Tbk, PT Salim Ivomas Pratama Tbk, PT Sampoerna Agro Tbk and PT BW Plantation Tbk. The industry players posted impressive operating margins in the fiscal year ended 2011 thanks to higher sales volume and prices of palm products.

Indonesia Palm Oil Industry 2H11 covers the country's industry overview, plantation, production, consumption, exports, stocks, prices and world oils and fats. It also covers the market trends in terms of the oleochemical and biodiesel industry developments, industry challenges, policy and taxation, government incentives, sustainable palm oil and market outlook, plus the comparative matrix and SWOT analysis of the industry leading players: PT Astra Agro Lestari Tbk (AALI), PT London Sumatra Indonesia Tbk (LONSUM), PT Salim Ivomas Pratama Tbk (SIMP), PT Sampoerna Agro Tbk (SGRO) and PT BW Plantation Tbk (BWPT).

Keywords:
Indonesia, palm oil, crude, plantation, land, acreage, oils and fats, oleochemical, biodiesel, production, consumption, export, stock, price, income yields, industry developments, challenges, policy, taxation, incentives, sustainable palm oil, market outlook, leading players, comparative matrix, SWOT analysis, PT Astra Agro Lestari Tbk (AALI), PT London Sumatra Indonesia Tbk (LONSUM), PT Salim Ivomas Pratama Tbk (SIMP), PT Sampoerna Agro Tbk (SGRO) and PT BW Plantation Tbk (BWPT).