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PALM OIL SEED INDUSTRIES IN 2016 STILL FACE THE PROBLEMS AND CHALLENGES

22 January 2016 , 06:37 WIB | Read : 929 | By : Dwi Asmono

the slow palm oil development happens for the stagnant economy in the world. the emergence of El-Nino, the decreasing cpo price really make palm oil seed industries slow to develop too. then what about 2016?

Being in 2015, there was optimism. The economy was predicted to be better and the normal climate would happen. So the palm oil seed industries targeted to increase 20% from the seed selling in 2014reaching 103 million seeds.

But as time goes by, in 2015, there were significant corrections, namely about the macro economy which related to the national palm oil industries.

For example, the drastic decreasing crude oil price, from the economic study, the crude palm oil price has something to do with the increasing and decreasing crude oil price. It is understandable that the decreasing crude oil price effects the CPO price.

When the CPO price has not been recovered, the El Nino came up, the long dry season happened which effects the palm oil productions where they are relatively far from the equator both to the north and south. In general, the effects were the lighter fruit and the process to be in fruit will be less.

In the same time, the economy in Indonesia did not get better and it made the economical correction. Referring to Global Competitiveness Index (GCI), the Indonesian competitive index decreased, ranked 37 from the previous rank, 34. It effected to the national palm oil industrial development.

When the economy was corrected, the environment issues come up drastically. For example, the declaration of Indonesia Palm Oil Pledge (IPOP) which commits not to make deforestation, not to enlarge the wetland, to ensure the material traceability, and others.

Of course,  . . .

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