InfoSAWIT, NUSA DUA –Responding to what President Joko Widodo (Jokowi) told when inaugurating International Palm Oil Conference (IPOC) 2018 and 2019 Price Outlook, in Nusa Dua, Bali, Monday, (29/10), about the implementation of palm oil biodiesel mandatory program (B20), Indonesian Palm Oil Association (IPOA) did welcome the lead.
The reason is that by running and implementing B20, the crude palm oil (CPO) price in the world could be more expensive again. The B20 program could be the solution to absorb CPO stocks when the world demands (exports) decrease.
“We do agree with what President Joko Widodo told us that the B20 could increase the domestic CPO stocks,” Chairman of IPOA, Joko Supriyono said in the official statement to InfoSAWIT,Wednesday (31/10/2018).
When telling his speech in the opening ceremony of IPOC 2018, President Jokowi told that there are five things to do to develop palm oil industries nationally, such as, the President wanted that B20 should be faster to do and maximally done. He confessed that it was decided to be implemented last year but it does not run as what as it is hoped.
“I notice this so that it could be 100 percent running and theCPO stocks in our country could be absorbed. Why should we import oil if our palm oil could be used to mix diesel?” President Jokowi said.
He also told that if the stock of palm oil could be mixed to biodiesel up to 20%, automatically the price would be more expensive.
“This is a trick in trade and we should do it. If not, we would be pressed. If we are pressed, we use it for ourselves if B20 runs well. Substitute every machine both car and electricity. Every thing must use diesel machine. Let them be sorry for that. But it takes some time,” he said.
Back to the Chairman of IPOA, Joko Supriyono. He said that the decreasing CPO and subtitution to palm oil biodiesel would be positive to the trade balance.
“This would help to decrease the trade balance deficit and would be reduce the impact of rupiah fluctuation,” Joko Supriyono said.
He also mentioned that in 2018, the CPO production nationally could be reaching 42 million tons. 30 million tons would be exported. “Knowing the numbers, the B20 program would never be difficult to get the stock,” he said.
Meanwhile IPOC 2018 and 2019 Price Outlook would run on Thursday, 1 November 2018 in BICC Nusa Dua, Bali. This is the 14th within the theme, "Palm Oil Development: Contribution to SDGs".
Coordinator Minister in Economy, Darmin Nasution; Minister of Trade, Enggartiasto Lukita; Chief of National Development Plan Bureau would tell the special address in the first day of the conference. While the other speakers in the conference session are the world expert in commodity, James Fry of LMC International England; Dorab Mistry of Godrej International Ltd England, and Thomas Mielke of Oil World, German.
While the domestic speakers would be: Musdalifah Mahmud (Deputy of Coordinator Ministry in Food and Agriculture), Mahendra Siregar (Council of Palm Oil Producing Countries), Aziz Hidayat (Chairman of ISPO Secretariat), and others. More than 1.500 participants of 36 countries would attend the biggest palm oil conference in the world.(T2)