Indonesian government set the reference prices for crude palm oil dan derivative products for export of US$782.03 per metric ton of CPO - Photo: Special

JAKARTA (TheInsiderStories) – Indonesian government set the reference prices for crude palm oil (CPO) dan derivative products for export of US$782.03 per metric ton (MT) of CPO. The benchmark price is increasing 1.70 percent compared to October at $768.98 MT of CPO.

“(Because) the reference price has exceeded the threshold at $750 a MT, the government put an export levy $3 per MT in November 2020,” said the director general at trade ministry office, Didi Sumedi, on Monday night (11/02).

He also reported, the reference price for cocoa beans in November 2020 was $2,482.63 a MT, or down 3.66 percent from the previous month, which was $2,576.84 per MT. This has an impact on the decline in the benchmark price of cocoa beans in November to $2,195 a MT, down 4.06 percent from a month ago was $2,288 per MT.

The increase of CPO’ price was due to the strengthening of international prices, while cacao seeds dropped along with the decline in prices on the international market. And, benchmark price and export levy for wood products and leather products are not experience changes from the previous month period.

Recently, the Indonesian Palm Oil Association (GAPKI), reported Indonesian palm oil products and derivatives in August fell by 14.3 percent to 2.68 MT of CPO compared to previous month caused of the low demands. In July, total export of the largest producer was 3.13 MT of CPO.

The executive director of the organization, Mukti Sardjono, said on Oct. 14, the export volume declined was influenced by COVID-19 outbreak and the rising of CPO prices. He also reported, the export values of palm oil dropped to $1.69 billion than July with total amount of $1.86 billion.

He continued, the average price in August stood at $703 per MT of CPO from previous month at $659 a MT of CPO. Based on export destination, he added, exports to India fell by 36.4 percent, China dropped by 1.7 percent, and Middle East decreased by 36.13 compared to July and 11 percent in annual basis.

Based on type, CPO exports down by around 146,000 tones, processed CPO exports fell by 242,000 tones, lauric dropped by 58,000 tones, and oleochemical exports still experienced an increase of around 5,000 tones. In August, Sardjono said, the domestic consumption around 1.38 million tons or fell by 3.3 percent from 1.43 million tons in July.

He elaborated, the consumption of palm oil for food increased by 1.9 percent to 654,000 tones, oleochemicals up by 2 percent to 151,000 tones. In contrast, biodiesel consumption fell by 9.8 percent to 576,000 tones. In the same month, the production reached 4.8 million tones or 13.74 percent higher than the previous month and jumped by 2.1 percent than August 2019.

“The increase in production occurs not only because it follows the cycle of the season but also because the plants have shown a recovery after the first semester of 2020 fertilization returns to normal,” he said in an official statement.

Sardjono also reported, Indonesia’ palm oil product exports have reached 21.31 million tones during January to August. Its 11 percent lower than 2019 with the main contributor CPO processed products, which experienced a 16.1 percent decline.

Written by Editorial Staff, Email: theinsiderstories@gmail.com