InfoSAWIT, JAKARTA - Director of PFMA, Dono Boestami said that palm oil plantation development keeps facing kinds of issues, such as, the accusation saying that palm oil is risky to deforestation which European Union parliament told, and the anti-dumping biodiesel from United States of America.
India, as the traditional market to trade palm oil from Indonesia also does the trade barriers by increasing the import tariff and the latest news is that the trade barriers from Brazil that makes higher import tariff up to about 14%.
Besides the trade barriers, the other challenge is the cheaper CPO globally. He said that it has been running since 2012 but PFMA was made in 2015 to face the challenges.
One duty of PFMA is to stabilize the price by trading palm oil to new markets in the domestic and by supporting biodiesel development. For some time, it could maintain the palm oil price.
He also mentioned that his side finds difficulty to limit the economical price of palm oil nationally. “For a while, we decided that the stable price of palm oil is about US$ 570/tons,” he said when giving speech in the Breaking the Fasting day together with the stakeholders and PFMA in May 2019 and InfoSAWIT did attend too. (T2)
This article once published in InfoSAWIT, June 2019