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CHALLENGE & PROSPECT IN PALM OIL INDUSTRY25 December 2016 , 06:08 WIB | Read : 244 | By : Kris Hadisoebroto
though palm oil has no fluctuative price in 2016 but the industry as the national economy pillar is potential to grow because the members of opec (organization of petroleum exporting countries) agreed to cut of the world crude oil production. is this a sign that palm oil prospect in 2017 will be better?
By the end of 2016, it could be said, the palm oil price is not significantly positive while the crude oil slowly increases from US$ 30 per barrel in 2015 to be about US$ 50 per barrel for the agreement to cut off the crude oil production done by OPEC countries.
For the stakeholders, this condition will be a good chance to have better crude palm oil price from the petro dollar producer countries which have small numbers of demand, for example, the countries in the Middle East and America.
The small numbers of palm oil demands also hit Indonesia as the number one producer in the world. This has decreased non tax income from this sector. The Out Fee is not valid when the palm oil is less than US$ 700 in the last two years.
But there is one phenomenon happening in palm oil industry in this country. Though it has no better price, in the last three years, the industry keeps developing and doing investment in the downstream sector, namely in the crude palm oil (CPO) and palm kernel oil centres, such as, in Riau, West Kalimantan, South Kalimantan, and in Java.
This means, without government’s order, the private sectors answer the decreasing palm oil demand by making investment in the fat and oil industry, ole-chemical industry for the two kinds have the good product demands internationally.
Besides giving the modal goods import facilities, the government keeps supporting the palm oil industry to invest in the downstream sectors by giving tax incentive and building infrastructures to ease its investment.
Besides the modal goods . . .