The Role of Oil Palm Companies in Indonesia as a Nation’s Competitive Advantage

Best Practices Sharing: The Antecedent Condition of Implementation in The Public Service : Disampaikan dalam The Strategic Management Society (SMS) – Washington, D.C. Tanggal 11 – 14 Oktober 2009.
March 13, 2019
Big Data The Most Valuable Commodity
Big Data: “The Most Valuable Commodity”
March 16, 2019

Indonesia is the largest world Crude Palm Oil (CPO) producer with Malaysia in second place. This agricultural commodity has become a chief Indonesian foreign exchange earner behind fossil fuel exports. In 2016, the export value of this commodity reached USD 17.8 billion. Historically, Malaysia has been more advanced in the CPO delivery, which can be explained by the general companies’environment of management, technological advancement and engineering, human resource skills and superior external support, such as road infrastructure, regulations and research& development by the industry and government. It is clear from data that the Indonesian production is disadvantaged by a wide range of inefficiencies. They range from limited technology and production management skills to limitedcultivation advancement. Applications of technical improvements are desired to enhance the national competitive advantage to the next level. This paper is an exploration of the current management culture and to consider a strategic management model that would be the most appropriate for Indonesia and would enourage high end technology and plantation management. A gradual level improvement would enable Indonesia to compete on a global scale as an industry leader in the palm oil market.