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    This document summarizes the CPO and oleochemical industry in Indonesia. It discusses Indonesia's presence in the palm oil value chain, from upstream plantation and milling to refining and downstream oleochemical production. It provides data on Indonesia's capacity and production levels for key oleochemicals like fatty acids, fatty alcohols and glycerin, which represent a small portion of global capacity. The document also outlines challenges facing the industry such as high energy and investment costs, lack of human resources and logistical problems, and opportunities to increase domestic oleochemical markets and production through industry clusters and government support.

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    asosiasi produsen oleochemical indonesia

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    This document summarizes the CPO and oleochemical industry in Indonesia. It discusses Indonesia's presence in the palm oil value chain, from upstream plantation and milling to refining and downstream oleochemical production. It provides data on Indonesia's capacity and production levels for key oleochemicals like fatty acids, fatty alcohols and glycerin, which represent a small portion of global capacity. The document also outlines challenges facing the industry such as high energy and investment costs, lack of human resources and logistical problems, and opportunities to increase domestic oleochemical markets and production through industry clusters and government support.

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    © All Rights Reserved
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    191 views25 pages

    APOLIN InaChem Presentation Final

    Uploaded by

    Mas Kulin
    This document summarizes the CPO and oleochemical industry in Indonesia. It discusses Indonesia's presence in the palm oil value chain, from upstream plantation and milling to refining and downstream oleochemical production. It provides data on Indonesia's capacity and production levels for key oleochemicals like fatty acids, fatty alcohols and glycerin, which represent a small portion of global capacity. The document also outlines challenges facing the industry such as high energy and investment costs, lack of human resources and logistical problems, and opportunities to increase domestic oleochemical markets and production through industry clusters and government support.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
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    of 25

    Asosiasi Produsen Oleochemical

    Indonesia
    CPO & Oleochemical Industry in Indonesia.
    Potential in Indonesia, regional and
    International Markets

    INACHEM 2010
    17 June 2010
    Presented by :

    Stefanus Goei King An


    APOLIN Chairman
    (Asosiasi Produsen Oleokimia Indonesia)
    (Indonesian Oleochemical Manufacturers
    Association)

    Inputs for
    Oleochemical
    Industry
    Raw
    Oil

    Energy

    Indonesian Presence in
    the Palm Oil Value Chain
    Processing

    Upstream

    Intermediates

    RBD Stearin
    1 mio ton

    Products
    Margarine

    Soap Noodles

    Ghee
    Cooking Oil

    Refinery
    22 mio ton

    Plantation
    6 mio Ha

    RBD Oil

    Fatty Acids
    RBD Olein
    4 mio ton

    PKS
    Mill &
    Crusher

    RBDPS

    CPO 18 mio ton


    PKO 1.8 mio ton

    CPKO

    Oleochemical
    3.2 mio ton

    CPO

    Others

    Cocoa Butter
    Confectionery
    Soap

    Fatty Acids
    1.0 mio ton

    Rubber / candle /
    Cosmetic . . .

    Fatty Alcohol
    0.32 mio ton

    Soap / Diesel
    substitutes

    Fatty Acids
    Methyl Ester
    2 mio ton

    Lubricant/
    Personal care

    Fatty Amine
    Glycerol

    Washing/Cleaning
    products

    Fertilizer /
    Explosives

    Palm Oil Process


    Fresh Fruit Bunch
    Palm Oil Mill

    Crude Palm Oil (100)

    Palm Kernel (25)

    Palm Oil Refinery

    Palm Fatty Acid


    Distillated
    (PFAD) (5)

    Palm Kernel Oil (10.5)

    Expellers

    RBD Palm Oil


    (Refined Bleached
    Deodorized Palm Oil (94)

    RBD Palm Oil

    Separation

    RBD Palm Olein


    (78 % RBD-PO)

    RBD Palm Stearine


    (22 % RBD-PS)

    Raw Material vs Domestics


    Utilization

    PKO

    PKO

    CBS

    RBDPS

    CBR

    Indonesia Oleochemical Capacity

    All figures in 000 MT


    Apolin data

    Global Oleochemical Production


    2009 (000 tonnes)

    Source : IOI GROUP, ACIDCHEM INTERNATIONAL 7TH ICIS WORLD OLEOCHEMICALS CONFERENCE

    Fatty Acid Capacity by Region

    Note : Indonesian capacity 1,000,000 MT = 12.5% world capacity


    World Demand 2010 = 6,300,000 MT
    All capacity increase in Asia
    All figures in mio MT
    Sources : LMC (2008)

    Fatty Acid Supply and Demand


    Projection

    Asian demand set to overtake NA & EUR demand in 2010

    All figures in mio MT

    Sources : LMC (2008)

    Fatty Alcohol Capacity and Demand


    by Region

    Note : Indonesian capacity 320,000 MT = 10% world capacity


    In000 MT
    10

    Global Glycerine Production 2009


    (000 tonnes)

    Note : Indonesian capacity 150,000 MT = 8% world capacity


    Source : CRODA 7TH ICIS WORLD OLEOCHEMICALS CONFERENCE

    12

    Inputs for
    Oleochemical
    Industry
    Raw
    Oil

    Energy
    Gas
    Electricity
    Alternative
    Fuel
    13

    Energy (Industrial Gas and


    Electricity)
    Higher energy cost compared to Malaysia.

    KK

    Indonesia

    Malaysia

    Gas/LNG

    $7.21/MMBTU

    $4.65/MMBTU

    Electricity

    $0.13 0.26/kWh

    $0.06
    0.08/kWh

    Higher Cost
    &
    Unreliable

    14
    Source: www.gasmalaysia.com, and www.tnb.com.my

    Coal as Alternative Source of


    Energy

    KK

    Due to shortage of natural gas and unreliable


    electricity supply, industry utilized coal as
    alternative fuel.
    Utilization of coal created new environment
    problem as the waste generated is considered
    hazardous waste.

    15

    Processes
    Technolo
    gy &
    Investme
    nt

    Human
    Resour
    ces

    Industry
    Clusters

    16

    Technology &
    Investment Cost

    Technology available mostly imported :

    KK

    Desmet Ballestra
    Oleo

    LURGI

    Custrioni Machinari
    Bernardini

    LIPOTECH

    MAN/Ferrosta
    al

    GEA

    High Investment Cost


    Fatty Acid

    $ 40 millions

    Fatty Alcohol
    Payback

    7 9 years

    DOMESTI
    $ 75 millions
    CS ?

    17

    Human Resources

    KK

    Human resources expertise in olechemicals field


    still limited.
    Universities need to keep up with oleochemicals
    industry requirement.

    18

    Palm Oil Based Industry


    Clusters
    Government based projects establish to
    develop clusters of palm
    KK oil based industries
    in Sumatera and Kalimantan.
    Location : North
    Sumatera, Riau, East
    Requirements
    Kalimantan
    Raw material supply secured.
    Utilities & energy supply provided (water,
    industrial gases, electricity).
    Infrastructures provided (port, transport,
    logistics, roads and railways).
    Incentives

    19

    Indonesia
    Oleochemical
    Industry Output
    20

    Petrochemical vs
    Oleochemical
    Synthetic oil

    Petrochemicals
    Linear Alkyl Benzene
    Sulfonate (LABS)
    Alkyl Phenol
    Ethoxylates (APE)
    Paraffin Wax

    Animal fat
    interchangeability

    Oleochemicals
    Vegetable oil

    Alcohol Ether Sulfate (AES)


    Alcohol Ethoxylates (AE)
    Alcohol Sulfate (AS)
    Palm Wax
    21

    Source: Oleochemicals Application PIPOC 2009, Ms. Eva Suyenty, PT. Ecogreen

    Persistent Logistics Problem


    to be Resolved

    No mother vessel willing to berth at Indonesian


    port. Need additional feeder vessel cost to
    Singapore/Malaysia port $130 $200/container.
    Port Congestion consistently cause tanker delays
    and cause demurrage charges $10,000/day.

    22

    Oleochemicals
    Domestic Market

    23

    Markets
    Domestics markets 20%

    KK 80%
    Export markets
    Potential to increase domestics market
    Fatty Alcohol

    Fatty Acid
    Surfactant
    Cosmetic / Personal
    Care

    Ethoxylates
    Alcohol Ether Sulfate

    Cleaning Agent

    Alcohol Sulfate

    Lubricant / Fuel

    Alcohol Ethoxylates

    Legislation for industry to use local content.

    24

    Conclusions
    Current surplus in palm oil over local demand still
    prospective to increase specialty fat (CBS and CBR) and
    Oleochemical production.
    Government should provide proper infrastructures, energy
    supply, water supply, and oleochemical specific
    environment regulations for developing oleochemical
    industry in Indonesia.
    Palm Oil Industry Cluster would be beneficial if proper
    infrastructures, energy supply, and water supply are
    adequately provided.
    Human resources with specific knowledge on palm oil and
    oleochemical are urgently needed.
    Considering the margin and investment cost, government
    should give incentives to attract new investors to invest in
    oleochemical industry particularly for downstream products
    (surfactant, Ethoxylates).
    Palm Oil Derivatives local content must be introduced to

    25

    Thank
    You
    26

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