Indonesian oil palm competitiveness: PT. Socfindo as a private sector example

Baskett, J. P. C. and Jacquemard, J. Ch. (2005) Indonesian oil palm competitiveness: PT. Socfindo as a private sector example. [Proceedings Paper]

PT. Socfindo is a long established, foreign owned, plantation company with operations in North Sumatra and Aceh. This paper provides a brief review of the background situation to the Indonesian Oil Palm industry, whilst noting the continued rapid expansion of this sector. The paper also provides a detailed example of how, over the past 30 years, PT. Socfindo has retained its competitive advantage in terms of production costs and profitability through the twin mechanisms of increased productivity (internal factor) and Rupiah devaluation (external factor). Provided the continued improvement in productivity of every hectare of planted land can be sustained by progressive improvements in planting materials and agricultural practices, the future prospects of this company remain extremely positive. Therefore, the experience gained by PT Socfindo over this extended period of increasing competition and a declining trend in palm oil commodity prices, could act as an example for the new players to follow in order to sustain the competitiveness of the Indonesian Oil Palm sector.

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Abstract

PT. Socfindo is a long established, foreign owned, plantation company with operations in North Sumatra and Aceh. This paper provides a brief review of the background situation to the Indonesian Oil Palm industry, whilst noting the continued rapid expansion of this sector. The paper also provides a detailed example of how, over the past 30 years, PT. Socfindo has retained its competitive advantage in terms of production costs and profitability through the twin mechanisms of increased productivity (internal factor) and Rupiah devaluation (external factor). Provided the continued improvement in productivity of every hectare of planted land can be sustained by progressive improvements in planting materials and agricultural practices, the future prospects of this company remain extremely positive. Therefore, the experience gained by PT Socfindo over this extended period of increasing competition and a declining trend in palm oil commodity prices, could act as an example for the new players to follow in order to sustain the competitiveness of the Indonesian Oil Palm sector.

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Item Type:	Proceedings Paper
Additional Information:	Available at Perpustakaan Sultan Abdul Samad, Universiti Putra Malaysia, 43400 UPM Serdang, Selangor, Malaysia. TP684 P3I61 2005 Call Number
AGROVOC Term:	oil palms
AGROVOC Term:	plant oils
AGROVOC Term:	economic analysis
AGROVOC Term:	industrial development
AGROVOC Term:	market research
AGROVOC Term:	private sector
AGROVOC Term:	profitability
Geographical Term:	Indonesia
Depositing User:	Nor Hasnita Abdul Samat
Date Deposited:	04 Sep 2025 03:25
Last Modified:	04 Sep 2025 03:25
URI:	http://webagris.upm.edu.my/id/eprint/1068

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