...1.0 INTRODUCTION Oilene Refineries’ management was unhappy with the quality of crude palm oil (CPO) delivered by Palm Haul Sdn Bhd (PHSB), their transporter. The contract will expire within the month. Oilene Refineries will have to analyse the scenario and make a decision whether to renew the contract with PHSB or find other solutions. 1.1 GENERAL INFORMATION –Crude Palm Oil (CPO) transportation * Approximately 1,500 tankers transporting CPO from the mills (where palm kernels are harvested) to the refineries (where palm kernels are processed for CPO extraction) in the peninsular and East Malaysia. * Palm oil estates operated by MNC have their own mills while smallholders send their palm kernels to co-operative mills for processing. * Once the CPO is extracted, it is then sold to refineries where it is refined for local consumption or export. These refineries are concentrated in areas where palm oil cultivation is a major activity. * The refineries commonly OUTSOURCE the transportation of CPO to transport companies. The transport companies are responsible to deliver consignments of CPO from the mills to the refineries. * The tankers have to be modified to carry CPO. * Approximately 17.73 million metric tonnes are moved yearly from the mills to the refineries by the tankers operated by transport companies. * Gross profit margins: 35%-45% * Administrative overheads are low. Net profit can be made if operated efficiently. * Achilles’Heel...
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...and Fiscal Policies) THE INFLUENCES OF BI RATES AND EXPORT TAXES ON INDONESIAN PALM OIL INDUSTRY Prof. Wihana Kirana Jaya, M.Soc.Sc., Ph.D. by: Nanang Suko Sadono 13/361118/PEK/19272 Batch 63 International MAGISTER OF MANAGEMENT UNIVERSITAS GADJAH MADA YOGYAKARTA 2014 THE INFLUENCES OF BI RATES AND EXPORT TAXES ON INDONESIAN PALM OIL INDUSTRY 1. INTRODUCTION Indonesia is the biggest producer of Crude Palm Oil (CPO) in the world which produced more than 25 million tons in 2012 and more than 200 trillion rupiahs in foreign exchange. The development of this industry, therefore, is important for the development of economy in Indonesia, as one tool to deal with problems faced such as poverty. This industry is also crucial in supporting the government in anticipating crisis of energy in the future due to the decreasing number of gas and oil over time. The increasing needs of renewable energy as the substitute of petroleum has also driven the demand of pam oil in international market. This high demand has led the price of palm oil in international market become higher. The high international price then persuade domestic producers to market their products to other countries, and this is a logic consequence since the companies as business entities always want to maximize their profit. The problem arise when all companies are forgetting the domestic market. Cooking oil, which is the end product of CPO, can be said as one of the most important goods in...
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...3 1.3 Unilever Indonesia Foundation 3 1.4 Overview of Dove Products 4 1.5 Environmental Record 5 CHAPTER 2 CASE STUDY: UNILEVER VS GREENPEACE 7 2.1 Indonesia Palm Oil Plantation 7 2.2 Unilever Palm Oil Suppliers 11 2.3 Environment Destruction Caused by Palm Oil Plantations 14 2.3.1 Deforestation 15 2.3.2 Destruction of Orang Utan Habitat 17 2.4 The Impact to Unilever 18 CHAPTER 3 CASE ANALYSIS 19 3.1 Ethical Theory 19 3.1.1 The Stockholder Theory 19 3.1.2 The Stakeholder Theory 20 3.1.3 The Social Contract Theory 20 3.2 Triple Bottom Line 21 3.2.1 People 21 3.2.2 Planet 22 3.2.3 Profit 22 3.3 Environmental Issues of Business Ethics 22 3.3.1 Business and Ecology 23 3.3.2 The Ethics of Environmental Protection 24 3.3.3 Who Should Pay the Cost of Environmental Damage 24 3.3.4 Regulation 24 3.3.5 The Value of Nature 24 3.4 Ethical Issues 25 3.4.1 Environment Destruction 26 3.4.2 Violating the RSPOs Principles 28 3.4.3 Unilever Failure of Screening its Suppliers’ Code of Conduct 30 3.4.4 Government Neglect of the Environment Issue 30 CHAPTER 4 CONCLUSION AND RECOMMENDATION 32 APPENDIX 1 Climate and Biodiversity Impacts of Unilever Palm Oil Suppliers in Kalimantan 35 APPENDIX 2 Dove Onslaugt(er) Video Capture 36 APPENDIX 3 Picture of People Support on the Greenpeace Campaign 37 Bibliography 38 WHAT LIES BENEATH THE BEAUTY An ethical case of Dove against Greenpeace in Indonesia...
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...33 Int. J Sup. Chain. Mgt Vol. 1, No. 1, June 2012 Impact of Government Law on Edible Oil Supply Chain in Bangladesh Perspective Reaz Ameen Choudhury#1, Meghla Clara Costa*2 #1 Department of Management, American International University Bangladesh, Dhaka, Bangladesh 1 reaz@aiub.edu *2 Department of Electrical and Electronic Engineering, American International University Bangladesh, Dhaka, Bangladesh 2 clara15@aiub.edu Abstract-This descriptive study is not intended as a detailed analysis; its aim is to present an overall view of the impact of a government law regarding edible oil marketing and distribution in Bangladesh. Social, economic, environmental and sustainability issues are not covered in this report. All the data of this report is collected from secondary source. This study is going to deliver contribution to the new investors who are going to invest in this industry, existing industries for legal compliance and process improvement. The academics can use this report for analyzing market scenario and Bangladesh government authorities can use it partially for monitoring market and decision making purpose. Keywords- Edible oil, Supply Bangladesh, Strategic, Tactical. Chain, Government Law, 1. Introduction A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers...
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...Assignment Submitted to: Prof. M.K Awasthi Table of Contents Introduction 2 History of Palm Oil 2 History of Palm Oil in Malaysia 2 Importance of Palm Oil in the World 3 Analysis of Economic Environment 5 Supply-Side Environment 5 Demand Side Environment 7 Palm Oil Economy in Malaysia 7 Key Inferences 8 Analysis of Political, Legal & Institutional Environment 8 FELDA, FELCRA & RISDA 9 Government Policies 9 Analysis of Social & Environmental Impact 11 Analysis of Technological Environment 12 Skills & Knowledge Development 12 Research & Development 12 Overview of Business Environment & Conclusions 13 Introduction History of Palm Oil The oil palm tree (Elaeis Guineensis Jacq.) is said to have originated in West Africa, somewhere between Angola and Senegal. The earliest archaeological evidence of palm oil has been found in an Egyptian Tomb in Abydos. These two facts point to two inferences. One, that palm oil production was happening even 5000 years ago. Secondly, as no palm oil was produced in Egypt, this means that Palm Oil trading also was prevalent at that time. Thus, Palm Oil has been used by mankind since historical times. A basic description of the palm oil extraction process is shown below: (Source: Malaysian Oil Palm Publication Annual Report 2011) History of Palm Oil in Malaysia Palm Oil was introduced in Malaysia by in 1910 by Scotsman William Sime and English banker Henry Darby as a plantation...
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...ACC 4291 INTEGRATED CASE STUDY TERM CASE THE PIRATES OF THE SILVERLAND (PALM OIL PIRACY) NAME: RAJA SITI AFIQAH BINTI RAJA AZMI MATRIC NO: 0826174 LECTURER: PROF. SHAMSUL NAHAR SECTION: 2 DATE SUBMITTED: 26th NOVEMBER 2012 SUMMARY OF THE CASE Established in 2002 in Taiping, Perak, Palm Haul Sdn Bhd (PHSB) was a small and medium sized enterprise in the Crude Palm Oil (CPO) transportation business. PHSB was managed by En. Rossly, the Chief Executive Officer which is also the son-in-law of PHSB’s founder, Datuk S. Najeed. Like the other transport companies involved in the business, PHSB also faced problems with its drivers embroiling in oil piracy. Transport companies are naturally will held the responsibility for such thefts as they usually take place under their watch and these companies are bound to compensate the refineries for such losses. The culprits involved frequently tanker drivers, depot operators and transporters. One of the major customer of PHSB, Oilene Refineries (Oilene) complaint about the quality of the CPO delivered by PHSB and its later impact on Oilene’s failure to fulfil their customer orders. This is because of the practice of siphoning CPO and adulterating the consignment with water, used oil or sludge was so uncontrolled that a number of PHSB’s customers have threatened to change their custom to other more reliable transport companies. Besides that, profits for the first quarter of 2009 had drastically decrease compared to the same...
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...CASE STUDY : PIRATES OF THE SILVERLAND (PALM OIL PIRACY) Company’s Introduction Palm Haul Sdn. Bhd. (PHSB) was a family-owned small and medium sized enterprise in the crude palm oil (CPO) transportation business located in Taiping, Perak. Established in 2002, it had about 200 employees which most of them were tanker drivers. On the average, PHSB transported 3000 tonnes of CPO from palm oil mills to the respective refineries that purchased the oil from oil palm plantation companies and cooperative mills. The company actually facing alarming problem with the quality of consignments to the refineries where the CPO either delivered short or contaminated with water or sludge. Statement of the problems Oilene refineries as one of PHSB’s major customer seriously affected by the bad consignments as they had to shut down the plant to clean out the sludge almost on a weekly basis and this was affecting their delivery timelines as well as the quality of the oil they produced. On top of that, there had been many occasions where the consignment delivered did not tally with amounts listed on the delivery orders. Oilene management had to decide whether to renew contract with PHSB which is due in June or to hire other CPO transportation company such as Tiger Oils Transporter which reported a more reliable transporter. Recommendations for Oilene 1. Contaminated CPO To overcome the problem caused by contaminated consignments that shutdown the eventually shutdown the whole production...
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...Oil palm plantation business models As of early 2011, oil palm plantations covered 7.8 million ha in Indonesia, out of which 6.1 million ha were productive plantations under harvest (Slette and Wiyono 2011). In 2010, these plantations produced 22 million tons of CPO and the production increased further to 23.6 million tons by the end of 2011. Most plantations, as well as CPO production, are located in Sumatra and Kalimantan (Indonesian part of Borneo). Between 1997 and 2006, 400,000 ha of oil palm plantations were established annually. Between 2007 and 2010, the size of annual establishment of oil palm plantations declined to 350,000 ha (Slette and Wiyono 2011). As new land available for plantations becomes more limited, annual development of plantation is expected to continue its gradual decline. However, over the next few years, land concessions already allocated for oil palm and not yet developed are sufficiently large to allow plantation estates to continue growing. There are three main types of business models for oil palm cultivation in Indonesia: private large-scale plantations and two types of smallholder models, i.e., nucleus estate smallholders, or NES, and independent smallholders. Smallholders manage nearly half of the overall plantation area; unfortunately government statistics do not distinguish between different types of smallholders. It is believed that smallholder operations have contributed significantly to the expansion of oil palm estates in recent...
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...PART I: CASE DESCRIPTION 1.1 INTRODUCTION Crude oil is a mineral oil. It is a mixture of hydrocarbons of natural origin and associated impurities, such as Sulphur according to Energy International Agency. Further explained, under normal surface temperatures and pressure, crude oil is exists in the form of liquid. It has highly variable physical characteristics such as density. Saudi Arabia, Russia, United States, China, and Canada are the top five oil producer countries (2013). As the producer, the countries are daily extracting sum of crude oil barrels through the process of drilling from their reserves. The top five oil consumer countries are United States, China, Japan, India, and Russia (2013). The consumptions are due to the aggressive economy advancement and the fast-paced growth of related industries. It is estimated that due to the current rate of consumption, the worldwide reserves will become depleted by 2040. Forecasted by the International Energy Agency Oil Market Report, more than 93 million barrels of oil and liquid fuels are demanded daily worldwide. Annually, the production is being works out for more than 34 billion barrels. Demand for oil is consistently growing globally. Referring to the basic economics, total output of the crude oil reached its peak and the price of it will gradually rise with the demand. Depletion of oil will result in the falling rate of the production. The prices of oil will rise at a bigger scale. The exploration on the new reserves...
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...Malaysia Stock Picks Malaysia stock picks site has been developed to give first hand information with regard to share trading opportunities available for investors who do not like go through lengthy research reports, calculations,etc but to have a clear idea about stocks that have future up side potential.Our service is just not for day traders but for the investors who wish to see their money growing in the long run.Our main objective is to provide information relating to trading under one roof. This Blog Malaysia Stock Picks: How to spot a good IPO and a bad IPO in ... 11 May 2012 I can't help but to mention one classic example of Vastalux Energy Bhd. In 2008, Vastalux stocks were undersubscribed and since its listing the share price hasn't climbed any higher than its IPO price and is currently facing ... http://malaysiastockpicks.blogspot.com/ 1 11 May 2012 How to spot a good IPO and a bad IPO in Malaysia Here is a guide to spot a good Initial Public Offering (IPO) and a bad IPO in Malaysia. Whether you are looking to subscribe for flipping for first-day gains or to hold for the long run, understanding why companies go for IPO is equally as crucial as looking for pertinent points that will increase your chances of striking a good deal and avoiding a bad one. Why Companies go for IPO? All companies listed on the stock exchange have one common interest in mind – to raise funds. Initial Public Offerings is the company’s first time raising funds selling its stock to the public...
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...ScienceDirect Energy journal homepage: www.elsevier.com/locate/energy Oil palm biomass as a sustainable energy source: A Malaysian case study S.H. Shuit, K.T. Tan, K.T. Lee*, A.H. Kamaruddin School of Chemical Engineering, Universiti Sains Malaysia, Engineering Campus, Seri Ampangan, 14300 Nibong Tebal, Pulau Pinang, Malaysia a r t i c l e i n f o a b s t r a c t Article history: Received 24 October 2008 Received in revised form 13 May 2009 Accepted 14 May 2009 Available online 13 June 2009 It has been widely accepted worldwide that global warming is by far the greatest threat and challenge in the new millennium. In order to stop global warming and to promote sustainable development, renewable energy is a perfect solution to achieve both targets. Presently million hectares of land in Malaysia is occupied with oil palm plantation generating huge quantities of biomass. In this context, biomass from oil palm industries appears to be a very promising alternative as a source of raw materials including renewable energy in Malaysia. Thus, this paper aims to present current scenario of biomass in Malaysia covering issues on availability and sustainability of feedstock as well as current and possible utilization of oil palm biomass. This paper will also discuss feasibility of some biomass conversion technologies and some ongoing projects in Malaysia related to utilization of oil palm biomass as a source of renewable energy. Based on the findings presented...
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...ecosystem and the multitude of its functions from a global perspective the approach to placing an exact value has been varied. In general, studies attempts to add up the direct and indirect values of the ecosystem. Direct values include the market price, such as extractive activities such as drilling, logging and fishing, while indirect values could include flood prevention, water filtration, and CO2 retention and reduction. Direct values are easy to place; but when it comes to indirect values, researchers must derive them from associated market prices or substitute costs, such as property values and the cost of building a water filtration plant respectively (Batker, Kocian, & de la Torre, 2007). Ultimately, both direct and indirect values may be used separately or together to find the monetary value of a specific function of an ecosystem. Examples include storm and flood protection, water quality and supply, atmospheric pollutant removal, waste treatment, pest control, pollination, and recreational value (Batker, Kocian, & de la Torre, 2007). The list is endless, and it really depends on from whose perspective these functions are valued. Engineers calculates the value of infrastructure and machinery, business leaders negotiate with revenues and profits of sales, and...
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...Issue 2 30.4.10 Jyoti nivas college sagezza FINANCE INSIDE THIS ISSUE: Finance Marketing Human resource management 2 3 4,5 Reliance discovers more oil in Cambay basin Energy major Reliance Industries has discovered more oil on India's western coast, raising the potential of the exploratory blocks it has been drilling, India's biggest conglomerate whose businesses span petrochemicals, refining, oil and gas exploration and retail said the current flow was at 300 barrels of oil per day (bopd)at the onland exploratory block in the Cambay basin in Gujarat state. The potential commercial interest of the discovery is being evaluated through more data gathering and analysis, it said in a statement. "The discovery is significant as this play fairway is expected to open more oil pool areas leading to better hydrocarbon potential within the block," it said. Reliance holds 100 per cent participating interest in the block, and three earlier discoveries had a flow rate of 500 bopd. The company has so far drilled 14 exploratory wells in the block that covers an area of 635 square kilometres. Last year Reliance, controlled by billionaire Mukesh Ambani, started pumping gas from its block in the vast Krishna Godavari (KG) basin off India's east coast, where it made the country's largest gas find. environment technology Economy politics sports 6 7 8 9 10 entertainment medifacts Campus 11 12 13 RBI OK with teaser home loan rates Teaser home loan rates, which are in the...
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...The Palm Oil Financing Handbook Practical guidance on responsible financing and investing in the palm oil sector © 2008 WWF International. All rights reserved. Any representation in full or in part of this publication must mention the title and credit the above-mentioned publisher as the copyright owner. The authors gratefully acknowledge the assistance of colleagues within WWF and other organizations in the preparation of this document. We would also like to thank Aswin Riva and Kisho Kumar for their technical advice, as well as Joel Posters (ABN Amro), Samantha Lacey (CIS), Maria Anne Van Dijk (Fortis), Simon Harris and Amol Titus (HSBC), Catherine Cassagne (IFC), Leonie Schreve (ING), Aninditta Savitry (Rabobank), Standard Chartered and Teoh Cheng Hai for their invaluable peer review comments on an earlier draft of this document. Design by Nina Narvsten (www.amazingearth.info). Production of this handbook has benefited from technical support by Profundo (profundo@profundo.nl). Profundo is an economic research consultancy specialized in the analysis of financiers, suppliers and clients of companies and policy options to stimulate them to operate in a socially responsible way. This publication also benefits from funding support to Profundo from Doen Foundation ( The Netherlands) This publication is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of WWF and...
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...wants them to do and there is other that goes above and beyond what it expected of them. In my opinion Shell Gas is one of the manufactures that is trying to do the most that they can to help protect the environment. Some of the things that Shell is doing to go green is using less energy, less water, prevent spills, and protect the environmentally sensitive areas. After the BP deepwater horizon explosion in 2011, Shell has been researching what they can do to make sure that this doesn’t happen again. After this spill happened Shell had worries about how their deep water drilling could be affected by this explosion. This explosion had caused Shell to lose between 40,000 and 80,000 gallons of oil. Along with this it made Shell look bad in the gas and oil industry by the loss of all the oil and the harm that was done to the ocean waters and the animals that depend on that water. Shell is now reinforcing a culture where safety is the core value. They are also making sure that all employees understand this value and making sure that every employee understands their role in making Shell a safer place to work. As a part of Shell’s research they have engaged in a six billion dollar program to improve the safety of their wells, pipelines, and other upstream facilities. Along with the safety of their workers Shell is also looking out for the wellbeing of the communities that they are working. Shell is building new waste water facilities to reuse household waste water. By Shell doing...
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