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The Covid – 19 Influences the CPO Price



The Covid – 19 Influences the CPO Price

InfoSAWIT, JAKARTA – In the latest days, the economy and the politic are in uncertainty and neither is the crude palm oil (CPO) price because there Organization of Petroleum Exporter Countries (OPEC) has no agreement with Russia and because of the corona virus (Covid-19) epidemic which hits many countries. These slow down the economy globally and decrease the vegetable oil consumption, namely the imported ones.

About the Covid – 19 pandemic, National Disaster Management Agency worried that the Covid – 19 epidemic in the domestic would hit until Idul Fitri but the experts in the world predicted that the peak of the epidemic would be in May to June. This could press the vegetable oil price, namely CPO.

In the early of this year (January 2020) the CPO got better about US$ 830/ton of CIF Rotterdam in the average compared to the average price in December 2019 which was reaching about US$ 787/ton.  The better price was hoped to be the stimulant for the planters and the plantation companies to nurse their plantations better and to get the better productivity.

“In some couples of months we would be in dry season and the fire (in the forests and areas) may be the frightful one. The burning to do new planting by the people should be avoidable though the regulation still allows to do it in less than two hectare – area,” Executive Director of Indonesian Palm Oil Association (IPOA), Mukti Sardjono said, as in the official statement to InfoSAWIT, Thursday (26/3/2020).   

He thought that the plantation companies need to confirm the coordination with related instances and check the infrastructure preparedness to prevent the fire.

It needs to develop what the plantation companies have done, such as, developing the Masyarakat Peduli Api, Desa Peduli Api, and the like with other formal and non-formal institutions in the society. “The good coordination and involvement of the people could prevent or avoid the fire in 2020,” he said. (T2)

 


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