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The CSF and the Effect to Palm Oil Price



Illustration of palm oil plantation in Indonesia/Doc. ANJ
The CSF and the Effect to Palm Oil Price

InfoSAWIT, JAKARTA - The member of Komite Ekonomi dan Industri Nasional (KEIN), Fadhil Hasan thought that the Crude palm oil Supporting Fund (CSF) should objectively be seen because it has different effects to the supply chain in the industries in Indonesia.

It is admitted that some sides would get the advantages from the CSF, such as, the smallholders’ FFB gets better in price; the company processing the CPO (but has no downstream industry) does also get the positive from the CSF.

But the downstream industries get the challenges when CSF does not run for a while because of the cheap FFB.

For example, the processed products from Malaysia get better compared to those from Indonesia. Fadhil thought, in India, the processed products from Malaysia is cheaper 5% than those from Indonesia. “The companies producing the derivative products get losses,” he recently said in Jakarta. (T2)

This article once published in InfoSAWIT, June 2019

 

 


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