InfoSAWIT, NUS DUA - Dorab E Mistry of Godrej International Limited admired and appreciated to biodiesel policy development in Indonesia for it is successful lobby from the stakeholders, and also Indonesian Palm Oil Association (IPOA).
The policy has made palm oil industries in Indonesia dynamic. The supporting factor is that the signing of cooperation between Indonesia and India to promote Indonesian Sustainable Palm Oil (ISPO) to India. In general, it could be said that Indonesia has good prospect. This is different from Malaysia.
“Malaysia is left behind for the country is difficult to get the workers and they are too late to do replanting program. This influences the harvest and the cheap price,” he said in the 14th International Palm Oil Conference and 2019 Price Outlook in Nusa Dua, Bali where InfoSAWIT also attended, Friday (2/11/2018).
Palm oil production in 2018 may be influenced by the El Nino in medium intensity. This happens with the biological low cycle that influences the production in Indonesia and Malaysia.
The needs of the energy in the world show the better increase. It does too with the food production. The scenario of the world vegetable oil stock would be better too but in smaller numbers.
For there are piles of stock, one assumption to make the price outlook is Brent. The Brent Crude is about US$ 80-90 per barrel within the possibility of the increasing interest rate of The Fed in December 2018 and 2019, and also the slow gross domestic product in the world in 2018.
The crude palm oil price would be cheapest and might be increasing again. The Future BMD would be about 2100 Ringgit and helps the competitiveness of palm oil to increase again. If the diesel and gasoline get more expensive, PME Blending would be more interesting. It is hoped that RDB Olein would be less than US$ 550 FOB.