Bayu Krisnamurthi, President Director of the Indonesian Oil Palm Estate Fund (BPDP-KS), said total exports of palm oil and its derivatives in the first quarter of 2016 reached 7.42 million tons. It is interesting to note that 87.2 percent of this total figure (or 6.47 million tons) comprises processed palm oil products, while the remainder consists of crude palm oil (CPO), implying that the downstreaming of the palm oil sector is developing smoothly. Krisnamurthi says the imposition of export levies on CPO has managed to encourage the development of downstream industries in the nation's palm oil sector.

Read more ›

The National Assembly of France agreed to impose an additional tax on imports of crude palm oil (CPO) and its derivatives used for the production of food products. An additional tax of 90 euro per ton (on top of the existing 104 euro per ton import tariff) is expected to be implemented in 2017. This tax increase is part of France's wider biodiversity bill that aims to reduce deforestation and protects French citizens from the negative health effects from consuming palm oil. Indonesia and Malaysia, the world's largest CPO producers have objected strongly to this higher tax.

Read more ›

Efforts made by the Indonesian government to convince France not to impose a progressive tax on imports of crude palm oil (CPO) and its derivatives have had some success. According to the latest stories, French authorities agree to cut the proposed additional import tax from 300 euro to 90 euro per ton. Earlier, on 21 January 2016, France approved a bill that gives birth to a progressive import tax on CPO and derivatives starting at an additional 300 euro per ton in 2017 and then increasing to 700 euro per ton in 2019, and to 900 euro per ton in 2020. Currently, France's import tax on CPO is just above 100 euro per ton.

Read more ›

The crude palm oil (CPO) price continues to rise supported by the impact of the El Nino weather phenomenon. El Nino causes a dry spell in Southeast Asia, home to the world's largest palm oil plantations. As a result, CPO inventories in Malaysia may have declined to 2.11 million tons, an 11-month low in February 2016. Meanwhile, Singapore-based agribusiness trader Olam International Ltd said CPO stocks will decline to the range of 1.5 - 2.0 million tons in the second quarter of 2016. Obstacles to higher CPO prices are Malaysia's strengthening ringgit (which curtails demand for Malaysian palm oil) and attractive prices of soybean oil.

Read more ›

Again, crude palm oil (CPO) shipments from Indonesia - the world's largest CPO producer and exporter - declined. Based on the latest data from the Indonesian Palm Oil Producers Association (Gapki), palm oil exports from Indonesia fell 16 percent on a month-on-month (m/m) basis to 2.1 million tons in January 2016. This decline was mainly caused by falling palm oil demand from the key export countries China and India.

Read more ›

The value of Indonesia's exports of crude palm oil (CPO) and its derivatives plunged 11.8 percent year-on-year (y/y) to USD $18.6 billion in 2015 from USD $21.1 billion in the preceding year. However, in terms of volume, Indonesian exports of CPO and its derivatives actually rose 21.7 percent to 26.4 million tons. The higher volume but lower earnings are explained by the palm oil price. Palm oil traded at an average of USD $614.20 per ton in 2015, down 24.9 percent (y/y) from an average price of USD $818.20 per ton in 2014.

Read more ›

The Indonesian Palm Oil Board (DMSI) expects Indonesian crude palm oil (CPO) exports to drop 8.7 percent (y/y) to 21 million tons next year from an estimated 23 million tons in 2015. This decline in export is attributed to an increase in domestic CPO consumption amid the full implementation of the country's B15 biodiesel program. Domestic consumption of CPO is estimated to grow 37 percent (y/y) from 8.4 million tons in 2015 to 11.5 million tons in 2016. If the B20 biodiesel program will be implemented as well, then Indonesia's CPO exports may decline further.

Read more ›

The Indonesian Palm Oil Producers Association (Gapki) said Indonesia's crude palm oil exports stood at 2.38 million in November 2015, down 8.6 percent from CPO exports in the preceding month. This decline is attributed to weaker demand from Indonesia's main export markets and to the cheap price of soybeans (soybean oil is a close substitute to palm oil for food and biodiesel uses). However, on a year-on-year basis, Indonesia's CPO exports are up 21 percent (y/y) to 23.9 million in the January-November 2015 period.

Read more ›

The Indonesian government will (temporarily) stop using sustainability standards designed by the European Union regarding crude palm oil (CPO). Indonesian Minister of Maritime Affairs Rizal Ramli said the current strict standards of the European Union hurt the domestic palm oil industry, especially smallholders. Moreover, Indonesia and Malaysia, the world's two largest CPO producers and exporters, are to set up a new intergovernmental palm oil council that will design new rules and standards regarding sustainable palm oil production.

Read more ›

Indonesia's export tax on crude palm oil (CPO) shipments will remain at zero percent in October 2015 as the government's reference CPO price fell 13 percent (month-on-month) to USD $529.51 per metric ton for October. When this reference CPO price is below the USD $750 per ton threshold, then the government scraps the export tax in an attempt to make shipments more attractive. However, exporters are still subject to the recently introduced palm oil exports levy. When the export tax is cut to zero percent, exporters are required to pay a USD $50 per ton levy for CPO and USD $30 for processed palm oil products shipments (part of these funds are channeled to Indonesia's biodiesel subsidy program).

Read more ›

Malaysia, the world’s second-largest crude palm oil (CPO) producer and exporter, will continue its duty-free export tariff for CPO in January 2015 according to information from the Malaysian customs department. Starting from September 2014 Malaysian authorities have implemented a duty-free CPO export policy in an effort to boost global demand and support international CPO prices (which have fallen nearly 20 percent this year). Indonesia, which has seen duty-free CPO shipments since October 2014, is expected to follow suit.

Read more ›

Reserves of crude palm oil (CPO) in Indonesia may have declined for a second straight month in October on the back of drought and an increase in exports from Southeast Asia’s largest economy. The delayed impact of drought (which even managed to dry up several rivers in West Kalimantan in October) limited production of CPO in recent weeks. Meanwhile, exports have increased after Indonesia and Malaysia - the world’s two top palm oil producers - scrapped export taxes to boost demand for this commodity.

Read more ›

Indonesia has the potential to become a global force in the biodiesel industry because of the country’s position as the world’s top producer of crude palm oil (CPO). In 2014, Indonesia’s CPO production is estimated to total 30 million tons. Traditionally, Indonesia exports about 75 percent of its total CPO production, particularly to the giant economies of China and India. As such, this commodity is one of Indonesia's most important foreign exchange earners, apart from coal, in the non-oil and gas sector.

Read more ›

The Indonesian government is considering to stop exports of crude palm oil (CPO) to Europe from 2014 onwards as domestic CPO demand in Southeast Asia's largest economy is rising, brought on by the country's biofuel industry which is expected to grow 70 percent next year to 5 million tons. To curtail oil imports, the government stimulates the production of crude palm oil-based biofuel by raising the mandatory content of fatty acid methyl ester (which is made from palm oil) in biodiesel products from 7.5 percent to 10 percent.

Read more ›

Indonesia's production of crude palm oil (CPO) in the first six months of 2013 rose 25.64 percent compared to semester I-2012 to 14.7 million tons, which is a little over half of this year's CPO production target. Despite weak global demand for the commodity (accompanied by falling CPO prices), growth was accomplished due to new seeds that became productive and because the total size of Indonesian palm oil estates continues to expand. Productive estates now stand at 9.4 million hectares from 8.7 million hectares last year.

Read more ›

The price of crude palm oil (CPO), which has been under downward pressure for a long time as global turmoil lingers on, started to rebound due to falling stockpiles in Indonesia and Malaysia. Reserves of the commodity fell because of weather conditions and because of an increase in demand ahead of the Islamic fasting month (Ramadhan). The price of crude palm oil is expected to hit the USD $900 per ton mark in late 2013, up from USD $828-865 per ton in May and June. This price recovery is expected to continue.

Read more ›