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Palm Oil Absorption from Indonesia Depends on the Export



Palm Oil Absorption from Indonesia Depends on the Export

InfoSAWIT, JAKARTA –Central Data of InfoSAWITpredicted that in 2018, there would be slow palm oil production because the exports (crude palm oil /CPO and its derivative) from Indonesia would increase 6,3% from the previous year, 2017. The export would be dominated by the derivatives, such as, RDB Olein or cooking palm oil reaching about more than 33 million tons.

The CPO production itself would increase about 8,3% or about 45,6 million tons. The numbers derive from the increasing harvest from productive plantations. On the other hand, the replanting program is relatively slow to do both in the plantations of the companies and the smallholders.

 

If next year, 2019, the replanting program could be maximally done, there would be slow production because in the last five years, there have been relatively narrow new plantings because of Palm oil Moratorium which is prolonged again.

 

Some replanting issues start from the legal of plantation namely to the smallholders. Besides, their plantations may have no clear and clean status.

 

For being the industries which could make rupiah and dollar, palm oil plantation industries should be careful to run the business. The global markets have turbulence and tend to decrease. The CPO and the derivative exports are the references to know the progress of these industries nationally.

 

The goal export countries are important for the industries nationally because in Indonesia itself, there was no optimal absorption. The CPO and derivative products depend on them that may have many interests in their domestic industries.(T1)

 

This article once published in InfoSAWIT Magazine, October 2018

 


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