The Indonesian Oil Association states that "oil exploration in Indonesia dates back to 1871, with the first commercial production beginning in 1885." The success of one of the very first wells, drilled at Telaga Tunggal in 1885, triggered the explosion of the Indonesian oil industry. At a depth of only 121 meters, this well produced commercial quantities of oil. This immediately led to more exploration and drilling of new oil deposits throughout the region. The Royal Dutch Company and Shell Transport and Trading were the first two companies to spearhead the start of the oil industry in Indonesia. In 1890, the Royal Dutch Company was established to produce and refine oil, while Shell Transport and Trading focused on the marketing and transportation side of the market. They merged in 1907 to form Royal Dutch Shell. In the literary work "The Early Days of the Oil Industry in Indonesia", it is written that at that time "total production amounted to 62,000 barrels per day, of which 95 percent was produced by Royal Dutch Shell.” At the turn of the century, around twenty companies were exploring, or even producing, oil in Indonesia. However, Royal Dutch Shell and the American companies Stanvac and Caltex dominated Indonesian industry in the first half of the 20th century. Major oil fields included Kruka and Ledok in East Java, Kampong Minyak and Sumpal in South Sumatra, and Perlak in North Sumatra. With the discovery of these and other new abundant deposits, crude oil production reached a new peak in 1939. Crude oil production reached 170,000 barrels per day, while approximately 180,000 barrels were refined each day. As a result, almost 75 percent of the Far East's crude oil came from I ...... middle of paper ...... for export helping to meet domestic energy needs. Indonesia dominates global palm oil production. With an expected production of 31 million tonnes in 2013, Indonesia is currently the largest producer and exporter of palm oil in the world. Palm oil is a cheap and production-efficient oil produced from the fruits of certain palm trees. With the growth of the palm oil industry, deforestation has become commonplace in Indonesia as a means of production. According to the Indonesian Ministry of Agriculture, “the total area of ​​oil palm plantations in Indonesia is currently around eight million hectares; a number that is twice as high as in 2000. » The palm oil industry is expected to grow for several reasons. Crude palm oil is simple to produce and therefore has low production costs. International demand increases due to rising gasoline prices..