Indonesian Palm Oil Bio-Wastes and its Environmental Impacts

"Indonesia is one of the world leaders in palm oil production. Palm oil industry is an industry to be considered when it comes to environmental impacts. This paper utilizes three step approaches. First, a material flow analysis of palm oil related industry was conducted in Indonesia. Second, a factory visit survey was conducted for getting information on environmental impacts of plantation and CPO mills. Third, a LCA study was made for a model Indonesian CPO mill in several bio-waste treatment options. Main findings were that, first; over 70% of FFB was bio-wastes generated from CPO mills. Second, some mills introduced a zero emission bio-waste policy. However, untreated bio-wastes in the zero emission policy, such as, CH4 from POME ponds, may have potential to reduce more impacts on the environment. Introduction Indonesia is one of the world leaders in palm oil production with approximately 12.4 million tons of crude palm oil (CPO) production in 2005 and with the plantation area 5.6 million ha spreading out in 19 provinces [10]. The expansion of palm oil cultivation in Indonesia and its export oriented industry heavily relies on the strong world market demand for food. Currently, there are 320 CPO industries in Indonesia [10]. These include plantations and palm oil related factories. Among them, there are six biggest players in CPO business in Indonesia: PT. Perkebunan Nusantara (PTPN) consisting of 9 PTPN, Sinar Mas, Raja Garuda Mas, Astra Agro Lestari, Minamas Plantation and Indofood. They are managing more than 50% of plantation estate in Indonesia and are leading the Indonesian palm oil business.Palm oil industry is an industry to be considered when it comes to environmental impacts. Unfortunately, there is not so much available information related to the performance of each CPO on environmental impacts. There are reports which provide information on environmental impacts of CPO mills in South East Asian countries, but are limited to, for instance, Thailand’s cases [4 and 5] and Malaysia’s cases [1, 3, 6, 7, 9, 11 and 12]. On the other hand, similar studies on the Indonesian’s case are not well established in academic literatures. And also there is limitation on Indonesian palm oil industrial information from plantation to consumption and disposal in academic articles. There is no literature related to material flow analysis focusing on the whole Indonesian palm oil related industry. One way to describe and present the environmental impacts is through a life cycle assessment (LCA). The LCA could be used to estimate the impacts of CPO production including the stages of plantation, transportation and milling [5, 8 and 11]. However, studies on Indonesian CPO production process were not well established in academic articles. The purpose of this paper is thus to clarify environmental impacts of palm oil industry in Indonesia especially by focusing on plantation and CPO mills with consideration to various bio-waste treatments."