InfoSAWIT, JAKARTA -Crude palm oil (CPO)and its derivative developed fast in the midst of 1990s to 2000s. Of course, it was also as the interesting alternative of investment to the world and also Indonesia. Since 2008 until now, CPO and its derivate products become the alternative investment that the domestic and foreign investors want to do.
The massive investment was in palm oil plantation nationally. The government was the main factor to increase the investment. If it is not well managed, the investment would get less profits and may be restructured.
So palm oil plantation investment could nationally be calculated by some indicators so that when facing financial issues, there would be solution to take because the stakeholders or investors may have no enough experience or good financial support.
Plantation investment could calculate the trees in the areas. There are many palm oil trees planted in the marginal areas, or other kinds of areas within some extreme limiting factors.
The assumption of finance when doing investment should be a consideration too. The financial calculation is made based on the expensive CPO selling price. It should consider some aspects, namely the theory about the basic selling price – the CPO and its derivative would point to new price balance.
In general, palm oil plantation investment in one region would make multi-effect of development that may develop the people’s economy. But the company may be fail to face the palm oil economic development.(Director of PT Pegadaian Persero/Soenarso)
This article was once published in InfoSAWITMay 2018