PalmOilMagazine - During Covid-19 pandemic many industries in Indonesia get bad news. But it does not happen to palm oil industries because these sectors do not significantly get the effects. The operational in the plantations runs normally by prioritizing the health protocols tightly.
2020 could be the time which is full of challenges. Besides Covid-19, the world commodity price is in anomaly. Brent crude oil, for instance, in January – February 2020 was about US$ 60/Barrel but after March 2020 it got cheaper to be about US$ 28/Barrel. It is predicted that crude oil would get cheaper in the first quarter of 2021 which is about US$ 49/Barrel.
Deputy Coordinator Ministry in Food and Agribusiness Coordination, Coordinator Ministry in Economy, Musdhalifah Machmud said that CPO in the early of this year once got cheaper but since in the midst of this year, it gets better. In the fourth quarter of 2020, it is predicted to be much better because of the prediction of increasing soybean and rapeseed oil production.
“Based on the Out Fee referential price in December 2020 by Ministry of Trade, it is US$ 870,77/ton,” Musdhalifah said in the socialization and press conference about Regulation of Minister of Finance (RMF) No. 191/PMK.05/2020 which was held virtually that InfoSAWIT did join in the early of December 2020.
She also told, though the CPO production in Indonesia gets decreasing, but because of the CPO average price getting better, palm oil sectors could highly contribute to the exchange. By September 2020, the exchange from palm oil reached US$ 1,87 billion or increased 10% than it in August 2020.
Compared to the previous year until September 2020, the exchange from palm oil reached US$ 18,4 billion or higher about 14% compared to 2019 which reached US$ 15,8 billion in the same period.
Musdhalifah also mentioned that since downstream policy was published in 2011, the export compostion of palm oil in Indonesia changed to the downstream sectors. If in 2006 palm oil exports were dominated by CPO, since 2016 palm oil exports have been dominated by downstream products. “We keep diversifying the downstream products,” she said.
Knowing the better CPO price in the world, precisely on December 3rd, 2020, the government through Ministry of Finance agreed to adjust palm oil export tariff through RMF No. 191/PMK.05/2020 about the Substitution of RMF No. 57/PMK.05/2020 about Public Service Obligation PFMA.
CPO export tariff adjustment is made because Steering Committee in PFMA, led by Coordinator Minister in Economy, within the members Minister of Agriculture, Minister of Finance, Minister of Industry, Minister of Trade, Minister of Energy and Mineral Resources, Minister of Enterprises, and Minister of National Development Plans/Head of National Development Plan Agency. (T2)
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