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THE DEVELOPMENT OF OLEO-CHEMICAL INDUSTRIES NATIONALLY

18 October 2017 , 06:10 WIB | Read : 54 | By : Kris Hadisoebroto

Oleo-chemical industries that are nationally dominated by the base-oleo-chemical industries are not as what many sides hoped. Though the CPO production in every single year increases more than 10% in every single year, the capacity of oleo-chemical industries seem not have good progress in the last five years.

The base – oleo-chemical progress, since biodiesel is developed as the alternative and renewable fuel, is out of expectation. Since 2008, the biodiesel industries have been massively developing in Indonesia. In three years only biodiesel industries have the capacity more than oleo-chemical industries nationally.

For description in 2011, the capacity of biodiesel industries had been more than 3 million tons per year nationally. But the oleo-chemical industries just reached about 1 million tons of capacityper year.

As a matter of fact, national oleo-chemical industries have been running since 1980s. For the first time PT Cisadane Raya Chemicals could produce fatty acid, and also soap.

It is admitted since 2013 every CPO derivative industry in the world and also in Indonesia is stagnant for it has something to do with fluctuation of the material. The swing of the CPO always influences the oleo-chemical selling price products.

The un-stable CPO selling price is not one reason of the stagnant downstream industries. The main reason of the CPO derivative industries is demand from Indonesia and global demand. It is no doubt that the regulation in this country also influenced the CPO selling price.

Though the stakeholders implement kinds of business strategies, one thing for sure, it should return to the main core of the business itself, that is, the market stock. It derives not only from the available stocks, but also should depend on the market demands.

Since 2014, many strategie

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