Crude-Palm-Oil (CPO) is an agro-industrial commodity which has a strategic value to
be developed for Indonesian economy and social welfare. Production and export of Indonesian
CPO increase progressively in the view years so that CPO is one of the pre-eminent products of
Indonesia. On the other hand, however, they could give two negative impacts. First, a less CPO
supply for domestic market as a result of export growing. Second, a worse environment as an
effect of the opening new palm plantations. We, therefore, construct and simulate the system
model for analyzing the relationships between the components and for describing their
behaviour within the supply chain of CPO by using a dynamic model. The result shows that in
the next 30 years, the revenue of Indonesian CPO industries tends to increase. The biggest
revenue will be achieved in the year 23rd. The maximum addition of plantation employees is in
the year 7th as well as in the year 17th. Deforestation would be the highest in the year 7th and 17th
in which 2008 as a basic year.