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The Palm Oil Price is Pressed, the Market Dynamic of World Commodity



The Palm Oil Price is Pressed, the Market Dynamic of World Commodity

InfoSAWIT, JAKARTA – Palm oil industries in Indonesia keep facing the tough challenges in the world. One of them is the uncertainty of the vegetable oil market dynamic globally where the export demands do not significantly increase and the crude palm oil (CPO) price remains cheap.

Meanwhile the domestic palm oil absorption is not big too. The CPO exports in Indonesia are not maximal because of some dynamic in the global markets, namely in the main goal countries, such as, India, European Union, China, and United States of America (USA).

In the report of Indonesian Palm Oil Association (IPOA) to InfoSAWIT, in India, Indonesia could not compete with Malaysia, namely about refined products. The import duty from Indonesia is more expensive than it in Malaysia within the gap, 9% (the refined products import duty from Malaysia is 45% than it is normally 54%).

Meanwhile Executive Director of IPOA, Mukti Sardjono said that European Union declared the Renewable Energy Directive II (RED II), Indirect Land Use Change (ILUC) and biodiesel subsidy accusation to Indonesia and these influenced the exports from Indonesia to the continent. “The trade war between China and USA also influenced the vegetable oil trade in the world,” Mukti said.

 


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