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JIS
(Journal of Cyber Science)

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DIGITALIZATION IN THE FIELD OF AGRIBUSINESS PT. CPO

Udi Wiyono#1, Marnoto#2, Stevianus Arief#3, Andris Wijaya#4, Merlin#5, Dede Prihatini#6, Emiral Triputri Marliana#7,

Asti Nuryani#8, Thanks to Febrianto Lase#9, Juslia Fransiska#10, Emiral Rizwan Santoso#11, M. Algazali#12

Management Studies Program, Asian Cyber University

Jl. Harsono RM No.1 RT09/04, RT.9/RW.4, Ragunan, Kec. Ps. Sunday,
South Jakarta City, Special Capital Region of Jakarta 12550

uditaurusboy@gmail.com, marnoto19610313@gmail.com, evanslie7@gmail.com, emiraltriputrimarliana@gmail.com,

jusliafransiska0205@gmail.com, thanks tofebryant@gmail.com, merlinasihpramina@gmail.com,
8gazalie.center@gmail.com, 9dedeprihatini84@yahoo.com, 10sweetjunggis@gmail.com, andris.wijaya@hotmail.com, emiral.rizwan@gmail.com

Abstract— CPO company is one of the big companies in

Abstract—CPO Company is one of the largest companies in
Indonesia which is engaged in Agribusiness. For six decades
Indonesia that has been engaged in Agribusiness. For six
with his commitment to work with the nation to realize the noble
decades with its commitment to together with the nation, and
ideals of prosperity with the nation. By employing about 210,000
realize the noble ideals of prosperity with the nation. By
employees, they are able to help absorb labor in all corners of
employing about 210,000 employees, they are able to help
the country. Through breakthroughs in the field of agribusiness,
absorb labor in all corners of the country.
CPO companies focus on utilizing capabilities

internals. Through breakthroughs in the field of agribusiness, CPO

Responding to the growing challenges in the digitalization era,
CPO companies continue to innovate and develop business
orientation towards the global market by carrying out a strategy
for an agile organization, focusing on being the partner of choice
and the pride of nations.
By optimizing Indonesia's advantages as the largest palm oil
producing country in the world, CPO companies continue to
grow in the fiercely competitive business climate that continues
to provide great pressure. With reliable, professional and high-
integrity resources, the tagline make things happen is a symbol
that can trigger high morale.
Company focuses on the utilization of internal capabilities.
Responding to the growing challenges in the digitalization era,
CPO Company continues to innovate and develop a business
orientation towards the global market by carrying out a strategy
for an agile organization, focusing on being the partner of choice
and the pride of nations.
By optimizing Indonesia's advantages as the largest palm oil-
producing country in the world, CPO
The company continues to grow in the fiercely competitive
business climate that continues to put great pressure on it. With
reliable, professional, and high-integrity resources, the tagline
makes things happen is a symbol that can trigger high morale.

The outbreak of the unstoppable covid-19 virus that has

paralyzed the global and national economy has created a crisis
in various sectors which of course has an impact on business
growth. In the midst of this uncertainty, the Company has
prepared a business contingency plan to be able to adapt and
get out of difficult situations through high optimism and focus on
domestic economic recovery.
The business contingency plan helps increase the company's
resilience to be able to get new revenue streams through the
Triple-P Roadmap scheme consisting of a business portfolio,
resources and social contributions. With the more mature
internal management of the business, business sustainability
will continue to be maintained from year to year.
Keywords —Digitalization, Business, Agribusiness.
The outbreak of the unstoppable covid-19 virus that has
paralyzed the global and national economy has created crises
in various sectors which of course have an impact on business
growth. In the midst of this uncertainty, the Company has
prepared a business contingency plan to be able to adapt and
get out of difficult situations through high optimism and focus on
domestic economic
recovery.
The business contingency plan helps increase the company's
resilience to be able to get new revenue streams through the
Triple-P Roadmap scheme consisting of a business portfolio,
resources, and social contributions. With the more mature
internal management of the business, business sustainability
will be maintained from year to year.

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Keywords—Digitalization, Business, Agribusiness.
A. Introduction
PT. CPO has a strong foundation in implementing
productivity improvement programs, including through
mechanisms and automation as well as Research and
Development (R&D) to develop superior seeds that become
competitive.
To continue to survive and compete in the domestic market
as well as the global market, it is necessary to have superior
quality seeds that are seeded and cared for for growth to
produce superior quality oil palm.
With the utilization of existing resources, both plantation
land that is well cared for in accordance with the existing
standard operating procedures , the quality of seeds that
are sorted in such a way, educated and trained human
resources and supported by technology that is starting to
transform towards digitalization, the gadang is able to
provide optimal results in the future.
In facing the decline in CPO prices in 2018, PT. CPO
focuses on increasing productivity and efficiency, as well as
diversifying businesses related to the core business in the
field of oil palm plantations.
Changing market conditions make companies perform a
number of massive efficiencies, and synergize to alleviate
difficult conditions through various business mechanisms so
that outputs and outcomes
the company is not corrected in.
Facing challenging business conditions in 2019, PT. CPO
prioritizes the “Operational Excellence” strategy through the
support of the digitization process to achieve optimal
productivity solutions.
Although still in the early stages of change, the transformation
from conventional to digitalization is the company's way of
responding to global market challenges to ensure the quality
of CPO production is maintained from upstream to
downstream in real time and accurately.
The positive trend in CPO prices supports the business performance of PT.
CPO in 2020. However, in the future, PT.
CPO will continue to innovate to increase productivity and
efficiency in a sustainable manner.
The positive impact of government policies starting from the
acceleration of the B20 and B30 programs encourages the
use of palm oil to be used more in aspects of life.
This also makes Indonesia the first country to successfully
develop biodiesel by mixing 30% palm oil into diesel oil so
that the sustainability of renewable fuels can continue to
progress until it reaches the B40 target in 2022.
The use of digital-based applications designed to support
productivity through remote control and monitoring
capabilities is one of the factors that helps PT. CPO during
the covid-19 pandemic.
Through remote control and monitoring capabilities, it can
support business decision making quickly and precisely so
that business uncertainties can be handled with an accurate
strategy implementation according to field needs.
B. The Basics of Up-to-Date Theory
Since 2018, PT. CPO has completed business activities
with an integrated digital operational system at the operation
center of CPO at the head office, including:
MANAGEMENT CONTROL
- Daily Indicator of CPO Agro
Smartphone application for reporting on daily tasks in
the garden, which consists of harvesting, maintaining,
processing, maintaining, operating and workshops. These
daily achievements will be submitted online to the directors
at the center.
- Mills Excellence Indicator
Applications for reporting factory machine parameters
by supervisors that provide an overview of factory conditions
in real time.
1. MANAGEMENT WORK
- Foreman Application
An application used to ensure that all company
operational activities run according to standard operating
procedures (SOPs).
- Application Maintenance
Application used to ensure all workshop activities have
been running according to standard operating procedures
(SOP).
Business digitization that has the advantage of real time
information plays an important role in fast, precise, and
accurate decision-making and analysis processes.
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Digital technology innovation is a core part of a sustainable
strategy to become a productive and efficient future company.
C. Research Method
To obtain the data needed in this study, researchers
conducted research on the palm oil company PT. CPO. With
consideration to make it easier for the author to collect the
data needed and in the end time, energy can be utilized
effectively and efficiently. Data is taken from late 2017 to late
2021.
Population is the totality of all objects or individuals that have
certain, clear and complete characteristics to be studied
(research materials). (Sugiyono, 2011).
The population of this study is data and facts for 5 consecutive the determination of biofuels from Indonesia containing palm
years so that the validity of the data can be accounted for.
According to (Iskandar, 2010: 68) the quality of research data
on a hypothesis is very dependent on the quality of the data
used in the research. Quality and research is determined by
the instruments used to collect data to produce applicable
data.
The focus of the research is analyzing data for the last 5
years including financial reports, digitalization and production
automation, business strategies, sales performance and plans
that will be prepared in the coming year. And evaluate trends
from year to year to make a conclusion.
D. Results and Analysis
1. Industry Overview
Indonesia is the world's largest palm oil producer. In 2017,
the national production volume reached 36.5 million tons, of
which around 68% was absorbed by the export market and
generated the country's largest foreign exchange contribution
of more than Rp.250 trillion.
After facing dry season disturbances since 2015, industrial
productivity has recovered, supported by slightly improved
CPO price movements, where the average selling price of
CPO reached Rp.8,271/kg in 2017, up 6% compared to 2016.
In 2018, the challenges of global crude palm oil price volatility
are back
impact on industry performance, with a downward trend
depressing the average CPO price in 2018
amounted to Rp.7,275/kg or decreased by 12% compared to
2017.
The decline in CPO prices was caused by several factors,
among others, negative campaign pressure on the use of
CPO as vegetable oil fuel, global economic turmoil and high
supply of CPO in the global market.
In 2019, the Indonesian palm oil industry faced a number of
formidable challenges. The performance of this sector was
again overshadowed by the continued downward trend in
world CPO prices, where the average selling price of CPO in
2019 was Rp. 6,689/kg, 8% lower than in 2018.
In addition, the Indonesian CPO industry also continues to
receive negative pressure from the European Union, including
oil that do not meet the EU's renewable energy targets.
Given the importance of the palm oil industry as a mainstay
commodity as a contributor to the country's foreign exchange,
this was responded by the Government of Indonesia by
submitting a lawsuit to the World Trade Organization (WTO)
at the end of 2019, accompanied by a policy to accelerate
the implementation of the B30 biodiesel program in the
country, where the Government also has the initiative to
increase Indonesia's biodiesel content above 30% in the
future.
In 2020, the palm oil industry experienced a slowdown due to
a decline in economic activity in various countries due to the
impact of the COVID-19 pandemic.
Demand for CPO from two major importing countries, namely
China and India, declined due to the implementation of
pandemic countermeasures, including the lockdown in the
first quarter in China and the second quarter in India, although
export demand slowly returned to normal in the third quarter
due to the easing of lockdowns in the country. -the country.
In 2021, the palm oil industry will be supported by a significant
increase in CPO prices, where the price of CPO in 2021 will
increase to Rp.11,294/kg or equivalent to 32% from 2020.
After the easing of lockdown policies in various countries in
the third quarter of 2020, the normalization of global economic
activity has an impact on increasing demand for CPO. This
condition is not matched by supply from major producing
countries because these countries face various challenges,
including crop yields affected by weather changes, pandemics
that hamper the smooth operation of plantation activities and
commodity logistics, and
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labor limitations. This factor resulted in a massive increase Overall, the prospect of CPO is still very good in the long
in CPO prices at the end of 2021.
2. Industry Prospect
The level of global market demand for vegetable oil as
one of the main food ingredients in the world, reaches 2
– 2.5% every year and continues to grow with the increase while CPO still enjoys a faster growth rate of 2.75%
in population.
Among the types of vegetable oil, palm oil is the most
efficient source of productivity level so that the palm oil
industry still has good prospects.
On the other hand, smallholder plantation development
opportunities are still part of the Government's program
to improve small-scale economic welfare.
Through a strong partnership improvement program, the
growth potential of this business will increase significantly. problems.
This includes plasma and non-plasma farmers to grow
and develop to support the welfare of small farmers.
The decline in CPO prices is predicted to occur in 2018
and 2019 and it is hoped that this situation will improve
towards the end of 2019. The long-term outlook for the
palm oil plantation sector is still quite good considering
that palm oil is more efficient than vegetable oil from other has been completed with sustainability certifications that
sources.
In addition, palm oil consumption has received support
from the Government with the push for policies on the
use of B20 biodiesel in 2018 and biodiesel
B30 in 2019. Namely the use of palm oil as a mixture of
diesel oil as vehicle fuel.
In 2020, weak global economic growth is expected to
continue given the constraints in various sectors in the
country in particular.
The palm oil sector is still anticipating an upward trend in
production, which will certainly depress prospects for
improvement in CPO prices, although the downward price
cycle that has been going on so far is expected to hit its
lowest point, with the potential to reverse direction in the
near future.
Besides aiming to reduce the state budget deficit, the
biodiesel program launched by the Government also
plays an important role in accommodating the excess
supply of domestic CPO so that the acceleration of the
program will further support CPO price stability better
than the previous year.
term considering that palm oil is the most efficient producer
of vegetable oil.
According to the OECD-FAO in 2016 showed consumption
of vegetable oil by 2.45% per year so that around 2025,
higher than the average production growth rate of 2.35%,
among other vegetable oils such as soybean and
rapeseed oil.
In 2020, Indonesia is the first country in the world to
implement a B30 biodiesel policy (30% mix of CPO in
diesel oil) with the target of accelerating the program
towards B40 by the end of 2022 (source: Ministry of
Energy and Mineral Resources).
In addition, palm oil offers a long-term solution in
overcoming global food security and environmental
According to a study conducted by the International Union
for Conservation of Nature (IUCN), the land requirement
for other vegetable oils is 9 times greater than palm oil in
producing one tonne of vegetable oil.
The palm oil industry also has a commitment to sustainable
development, where the governance of oil palm plantations
have been regulated by palm oil producing countries.
3. CPO Agro Lestari
CPO agro-sustainable is one of the largest agribusiness
companies in Indonesia with a focus on integrated palm
oil cultivation and palm oil production.
Business management also develops partnerships with
surrounding farming communities, both plasma and non-
plasma to grow and support the welfare of the nation.
PT. CPO runs an integrated palm oil business from
upstream to downstream. The products are marketed to
domestic and international customers, while derivative
products including RBDPO, Olein, stearin and PFAD are
intended for overseas markets.
PT. CPO manages its palm oil business in three main
locations in Sumatra, Kalimantan and Sulawesi. At the
end of 2017, the land managed was 297,961 hectares
with a composition of 77% of plantations as nucleus
plantations and 23% as management of oil palm seedlings
or plasma.
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The management has met the sustainability aspects, this is
evidenced by the issuance of an ISPO (Indonesian Sustainable
Palm Oil) certificate.
To encourage business growth, PT. CPO relies on strategies
to increase plantation and operational productivity. There are
several initiatives carried out including replanting activities in
areas that have old plants as well as an end-to-end mechanism
program starting from fertilization activities, activities within the
plantation area, and fruit transportation activities to the location
of the palm oil mill.
Farming activities are supported by research and development,
including seed breeding activities to produce superior seeds
according to conditions in Indonesia, as well as applying the
tissue culture method to duplicate superior oil palm trees with
the aim of increasing production output.
To realize agronomic practices in producing fertilizers with
optimal formulas according to plantation needs, PT CPO has
also built NPK fertilizer factories in several locations close to
plantation areas.
PT. CPO processes fresh fruit bunches produced from its own
plantations and from nearby farmers.
Palm oil production uses production facilities consisting of 31
palm oil mills, with a capacity of 1,510 tons per hour. And 14
palm kernel pressing factories with a capacity of 1,635 tons
per day.
Sales of palm oil products produced by PT. CPO is carried out
based on a tender process for domestic buyers. Meanwhile,
derivative products marketed in foreign markets are represented
by venture companies based in neighboring countries.
In 2017, PT. CPO has marketed its products to foreign markets,
including China, India,
Bangladesh, Ghana, Malaysia, Nigeria, Pakistan, Philippines, South
Korea, United States and some countries of the United States of America
Europe.
Supported by good weather and the strengthening of
productivity improvement programs in recent years, fresh fruit
bunch production increased by 7% from the previous year's
4.9%.
The contribution of fresh fruit bunches in 2017 was 50% of
production from own plantations and 50% from purchases of
local farmers.
In 2017, the price of CPO increased by 6% to Rp.8,271/kg.
This price increase resulted in an increase in net income of
Rp. 17.3 trillion, an increase of 23% from the previous year.
With support
lower operating costs and stable foreign exchange, net profit
reached Rp.2.0 trillion.
In addition to improving operational performance, PT. CPO is
also expanding into other businesses by integrating palm-cow,
starting with the purchase of 10,000 cows.
Based on the spirit to participate in the Government's program
to create food sovereignty in Indonesia. This business is
focused on breeding and fattening cattle.
PT. CPO is optimistic that it has a strong foundation to achieve
sustainable growth targets. Through the Moving Sustainably
theme , which was launched by the company for next year and
supported by good industry prospects.
The strategic plan of PT. CPO, among others;
a. Intensification efforts, mechanisms and automation in
plantation areas, factories and administration.
b. Replanting with superior seeds.
c. Optimizing the role of the Research and Development
sector to increase the competitiveness of production
and marketing.
d. Continuing existing downstream industry operations.
e. Development of business diversification in synergy with
oil palm plantations, including business integration.
f. Increase sales volume through developing cooperation
with local farmers
and external CPO purchases.
g. Increased productivity of human resources in balance
with business growth.
h. Strengthening the implementation of corporate social
responsibility programs to maintain harmonious
relations with the surrounding community.
In 2018 PT. CPO has applied the use of digital technology in
operational activities
his business. This digitalization is very helpful for the company's
operational activities in navigating business conditions.
a. Management Control
In the management control process, PT. CPO has created and
integrated two well-installed digital applications into its business
operational processes.
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The first application, namely the daily indicator which integrates The following is a table of business maps for PT. CPO;
***Data taken from PT. AAL
conventional reporting into digital reporting through smartphone
devices , consists of harvesting fresh fruit bunches, maintaining
nucleus and plasma, maintaining plant tools and machinery,
operating fresh fruit bunches and workshops.

Daily achievements are directly updated to the directors at the

center.

The second application, which is an application that is used to

control and monitor machine parameters so that changes to
production output can be detected early, this makes it easier
for supervisors to direct their subordinates in solving problems
at the factory.

The third application is an application used to ensure that all

operational activities from upstream to downstream run
Table 3. Data on palm kernel harvest and processing
according to existing standard operating procedures .

Through these applications which are integrated in a master

system, business activities can be monitored accurately and in
real time.

In the future, the sustainability of the business digitization

process will be one of the main work agendas for PT. CPO.
The rapid advancement of technology makes applications in
today's businesses more affordable.

Although digital capabilities do not always guarantee a direct

cost-efficiency contribution.
PT. CPO remains optimistic that technology provides optimal
solutions in more systematic plantation and mill operations so
that it can reach the smallest business units and achieve more
optimal productivity and work effectiveness. Table 4. Data processing in 2019-2020

Entering the year of the pandemic, the use of digital-based

applications designed to support productivity through remote
This is certainly an important part of the focus
control and monitoring capabilities
operational excellence in the future as a competitive strength
is one of the factors that help operational activities.
of PT. CPO in responding to various challenges in the foreign
market commodity business.

In 2021, PT. CPO recorded an increase in net profit contribution

As in recent years, business operations are still focused on
of 137% to 1.6 trillion in line with the trend of strengthening
operational excellence strategies with a focus on improving
CPO prices in the domestic and global markets.
crop yields through strong research capabilities for innovative
best agronomic practices, and supported by mechanization
and automation processes to optimize operational efficiency.
In improving the use of digital applications that have been
designed from 2018, infrastructure strengthening continues to
be carried out to eliminate disruptions and obstacles in the
However, every year business activities are always faced with
business monitoring process.
challenges such as the decline in CPO prices, climate change
due to the impact of globalization, global market competition
One of the most important benefits of a business digitization
and the COVID-19 disease outbreak.
set-up is having the advantage of real time information
as well as an increase in the minimum wage which forced an
play an important role in fast, precise and accurate decision-
increase in operating costs.
making and analysis processes. Digital technology innovation
is a core part of the strategy

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become a future company that is productive and efficient.
The core business during the pandemic consisted of oil palm
plantations consisting of nucleus and plasma with a composition
of 214.5k ha nucleus and 72.2k ha plasma.
Then the plantation products for local and global markets are in
the form of crude palm oil and palm kernel which are commonly
called PKO.
The downstream business sector consists of product derivatives
in the form of RBDPO, Olein, Stearin, and PFAD. The resulting
waste can be processed into NPK fertilizer in collaboration with
local farmers.
The oil palm plantations that are managed have complied with
and met the criteria in the ISPO, and continue to strive to meet all
subsidiaries with appropriate standards for managing plantations
from upstream to downstream.
In the sustainable policy, consistency in implementing the
commitment to no deforestation, peatland, and exploitation which
has been running since 2015 and emphasizes the commitment to
no deforestation practice, implementing peatland management
programs, preventing land fires, and respecting human rights.
Operational records and performance in 2021 recorded impressive
achievements, where from 100% of the land owned, 92.2% had
produced and 7.8% had not yet produced.
From the factory sector, palm oil processing has reached 43.7%
in a row, Sumatra recorded 34.4%, Kalimantan 43.7%, followed
by Sulawesi 21.9%.
Meanwhile, new NPK producers are from Kalimantan with a ratio
value of 50%.
In 2021, PT. CPO enforces strict health protocol policies such as
conducting regular rapid tests, requiring the use of masks, and
measuring body temperature. It aims to maintain the health of
workers during the pandemic.
Employee productivity is optimized through the work from home
pattern carried out by employees in the office. Meanwhile,
operational activities in plantations continue to run normally with
restrictions on access for workers and external parties.
The impact of the pandemic on production output was a -7%
decline in fresh fruit bunches production from 4.633 tons in 2020
to 4,327 tons in 2021. However, crude palm oil production rose
+3% from last year, core oil production rose
+4%, and there was a decrease in sales of crude oil and its
derivative products by -6%.
Overall, business is running normally amidst the pandemic. This
is thanks to the contribution of digitizing business processes that
are continuously being developed through remote control and
monitoring systems.
Another priority work program is to increase plantation production
and productivity. The strategies implemented are intensification,
mechanization, and automation, accompanied by a program of
replanting areas that have reached their peak production age,
supported by research on the development of superior seeds.
In this case, PT. CPO released three new high-yielding varieties
produced by the research and development team in 2021. The
research process was initiated in 2008 which has gone through a
process of field evaluation, testing and extensive observation, in
which the three types of seed varieties are called Lestari,
Prosperous, and Nirmala.
In the aspect of research and development, in addition to research
related to the provision of superior seeds, research is also
conducted on the utilization of soil microbes to increase the
effectiveness of the use of fertilizers. Besides that
Also, research on plant pest and disease control has focused on
stem rot and stem borer attacks on replanted plants. Plant
cultivation techniques aim to ensure oil palm plants can produce
according to their potential.
In 2021, the company has marketed various products consisting
of crude palm oil and other derivatives products in the domestic
and global markets.
Retailing is indeed eroded in 2021 by 13.3% for sales of crude
palm oil, but for derivatives products it has increased by 16.1%.
From the financial statements, in 2021, the company posted a net
income of 24.32 trillion or an increase of 29.3% from 2020. This
condition was influenced by the strengthening of CPO prices by
34.3% and the increase in prices of kernels and their derivatives
by 58%.
Gross profit was recorded at Rp.4.83 trillion, up 63% due to the
increase in net income which was higher than the increase in cost
of goods sold.
The target for 2022, taking into account the prospects of the palm
oil industry and its various dynamic challenges, is that the total
production of fresh fruit bunches is expected to reach 4.6 million
tons, then the total production of CPO will reach 1.6 million tons.
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E. Conclusion
The development of technology and science continues to help the
development of the palm oil business at PT. CPO.
Through a number of improvements and innovations, the agribusiness
process in the CPO-producing sector is running well even though
global economic conditions often change and have a direct impact
on business processes.
Digital transformation from upstream to downstream has a positive impact
in the control system so that the monitoring process can be carried
out in real time from workers or field foreman.
With the implementation of the Government's B30 policy, the
company also contributes to the success of the program through the
supply of quality CPO as a mixture of diesel fuel as much as 30%.
This answers the global challenge that the Government of Indonesia
is able to compete with big countries by cooperating with the
domestic private sector in realizing an idea and the idea of creating
a renewable energy source.
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