Palm Oil Essay

3053 Words13 Pages
Palm oil has great impact on the economy in Malaysia and Indonesia. Analyse the economic and environmental effect. What is the attitude of the government to this sector? Introduction Palm oil is edible plant oils that derived from the fruits of palm trees. It is wildly used cooking oil because of its natural consistency, appearance and pleasant smell. What’s more, Palm oil can be used and prepared in a number of processes without the need to hydrogenise it. This has advantages as hydrogenation can produce undesirable Trans-fat acids which may lead to diseases, which includes cardiovascular problems and diabetes. Palm oil has also been successfully developed as a biofuel for cars. Using palm oil as a biofuel is more environmentally friendly. Indonesia and Malaysia has been the two largest producer of palm oil for a long time. According to the 2011’s estimation (chart 1-1), Indonesia and Malaysia are still ranking the first two palm oil producing countries with very exceedingly larger producing quantity than the following countries. Chart1-1 1 Nevertheless, the demand for palm oil is growing so rapidly that Malaysia and Indonesia are facing challenge to cope with the global demand. From the 22nd Palm and Lauric Oil conference and Exhibition on 9 March, palm oil now accounts for 57% of world vegetable oil exports and by 2015 about 62 to 63 million tonnes of palm oil would be required versus 45.5 million tonnes in 2010. In this paper, we will analyse how the domestic palm oil industry impacts the society and economy of in Malaysia and Indonesia, and the roles that government plays in the developing and regulating the palm oil industry. The first section will briefly introduce the history of palm oil industry in these two countries. Details on the economic impacts of palm oil business and government’s actions in developing palm oil industry will be

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