InfoSAWIT, JAKARTA -It is admitted, the crude palm oil (CPO) production that increases in every year needs the markets which are ready to absorb it in every ton. The increasing CPO production really needs offtaker that develops too. Not only the existing markets, but it also needs to expand the markets that need it.
The CPO market is interesting topic to discuss for it keeps developing. It needs export and domestic markets. The countries that need it are India and China. These are the biggest goals of CPO export until now. Besides, the domestic markets are the mainstays.
Talking about domestic markets, it relies on the needs of cooking oil and food oil markets. CPO markets for the food oil are to cooking oil industries or refinery that develop until now. If years ago the refineries were in the big cities within crowded population , such as, Sumatera and Java, now the refineries have been built in other big islands, such as, Kalimantan and Sulawesi where the big cities are developing. Though there are not crowded yet, but the islands have mainstay on the material of CPO.
The approach system to the material since 2016 has become trend of middle class industrial development. The refinery is built in the centers of CPO material and in 2017 some regions had been operating, such as, East Java, East Kalimantan, and West Sulawesi.
The approach to the region producing CPO material has become new trend to develop CPO downstream industries. The stock of material in the region is supported by the good port (as the infrastructure) to transport CPO by the sea.
Though the sea is as the main goal to transport but the land is still needed to get to the port in the big cities around the industries. The production would not to fulfill the cooking oil only in the industries but also other cities around.