The Ways to Maintain the CPO Price

The Ways to Maintain the CPO Price

InfoSAWIT, JAKARTA - The dependence of CPO from Indonesia to the export markets is predictable to face many issues for the palm oil industries nationally since years ago. In addition the domestic absorption does not give many hopes though there are some breakthroughs in the domestic by biodiesel mandatory program.

On the other hand, there is no certainty to absorb the sustainable CPO. It is needed to increase the CPO demands globally. It is important to have balanced supply and demand on CPO and it is part of the palm oil industrial needs and would be the future business nationally.

To maintain the CPO market in the global level, Palm oil Plantation Fund Management Agency agreed not to run CPO Supporting Fund (CSF) until the end of 2019.

This is done as the way to maintain the CPO price in the global level which the smallholders get the influences. Besides the CPO price globally is in fluctuation. The CSF would run if there is certainty that the price would be better.

Director of PFMA, Herdrajat Natawijaya admitted that before he was pension, the main issue in palm oil sector is the cheap CPO price that influences the welfare of the smallholders. To improve it and increase the work of palm oil in Indonesia, there have been some programs done in the short and long term.

The first is by making consolidation to estimate the CPO total supply to get the demands. There were some different data and it is known from the data of width, areas, and exports.

It is the time to consolidate the data of palm oil sectors – just refers to one same data which consists of the width, the productivity, the total production, and the export.

It is time to accelerate the domestic absorption by biodiesel mandatory program. Though the B20 mandatory program was inaugurated by the government since January 2016, the policy run in September 2018 namely for the non-public service obligation (PSO) sectors. (T2)

This article once published in InfoSAWIT, November 2019


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