International

LESS AGILE THAN MALAYSIA

23 March 2015 , 06:10 WIB | Read : 1139 | By : Atep Yulianto Irawan

malaysia advantages the potential cpo markets though there are lots of tight competitiveness in the global cpo markets for the abundant productions. on the other hand, indonesia is less agile to advantage the markets.

Though there is slight increasing crude palm oil (CPO) price in the world, but it is not drastically increasing.

Executive Director of Oil World, Thomas Mielke predicted, the total fat and oil exports from Indonesia and Malaysia reached 43,6 millions of tons in 2012/2013 or 58% from the world total fat and oil exports.

In 2013/2014, the total world CPO exports fell down for the first time in the last 16 years. Thomas predicted, it could possibly happen for the demands of other kinds of oil. And after 25 years, for the increasing area and productivity, half of the increasing demands derive from bean oil.

But it will take some time to change the use of bean oil for the limited areas. Bean oil could be cultivated in Russia and Brazil which have double progress in the last six years.

It is said, in 2013/2014, United States of America and the regions in Southern Amecia will increase the exports of 10 kinds of vegetable oil to be 131 millions of tons where 95% or 109 millions of tons are soybean oil.

In 2020, Brazil and Argentine target to produce soybean oil up to 162 to 167 millions of tons or increase 22% from the previous production which reaching 130 millions of tons.

This condition will influence the stocks, especially in the soybean, sunflower, canola and palm kernel oil. So in 2013/2014 there were additional productions up to 28 millions of tons and the stocks reached 8 millions of tons.

It is clear, the production competitiveness decreased the CPO price in 2014 which reaching 2,8% than the average price in 2013. This condition urged many alternatives to absorb CPO as high as possible, such as, making regulation in biodiesel mandatory which government has implemented though in the early of 2015, there was no good result. Malaysia does to by increasing the absorption from 7% to be 10% in 2015.

But Malaysia is more agile than Indonesia to absorb CPO. Malaysia does not depend on the CPO absoption only but opens the potential CPO markets.

In January 2015

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