Plantation workers (harvesters), therefore, could get more income while the estates could boost production besides reducing the high cost of production due to significant labour reduction.

The government has set itself the target of issuing Indonesian Sustainable Palm Oil (ISPO) standards in August 2010 at the latest, an Agriculture Ministry official said.

The ISPO standard would prove that development of oil palm plantations in the country did not destroy the environment, the ministry`s director general of plantations, Achmad Mangga Barani, said on Tuesday.

Felda Holdings first step was to set up 26 subsidiaries and five joint-ventures covering every aspect of the oil palm supply chain. Today that number sits at 52 subsidiaries and three joint ventures.

The subsidiaries are involved in the downstream, manufacturing, services, engineering, transportation and agro-based related joint-ventures overseas to ensure that Felda's produce is sold to the right markets at the right price.

All profits are declared as dividends to the major shareholders of Felda Holdings, which are Felda and Felda Investment Cooperative (FIC). All Felda settlers and staff, who are members of FIC, enjoy a yearly dividend ranging from 10 to 15 percent.