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Palm Oil Downstream Industries in Indonesia Develop: More Capacity



Palm Oil Downstream Industries in Indonesia Develop: More Capacity

InfoSAWIT, JAKARTA – Palm oil downstream industries in Indonesia keep developing though some challenges are ahead. That is why to update the latest downstream industries, it was told in the breaking the fast event among Forum Wartawan Pertanian (Forwatan), Asosiasi Produsen Biofuel Indonesia (Aprobi), Asosiasi Produsen Oleochemical Indonesia (Apolin), and Gabungan Industri Minyak Nabati Indonesia (Gimni) in Jakarta, Monday (27/3/2023).

Besides, the three - palm oil downstream - associations are in collaboration with Forwatan to deliver helps for the orphans and those in need through social foundation around Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek).

“Media plays incredible roles to support downstream industries, including biodiesel. That is why we hope this cooperation could always run,” Daily Chairman of Aprobi, Paulus Tjakrawan said, as in the official statement to InfoSAWIT, Thursday (30/3/2023).

He thought, biodiesel program has been in 35% and would escalate for the next years. In 2023, biodiesel use would be reaching 13,15 million kiloliters and could reduce diesel import up to Rp 140 trillion.

Chairman of Apolin, Rapolo did appreciate the Government of Indonesia in its anticipation when pandemic happened because it needs to be careful when or before publishing policies. Indonesia should be grateful for having palm oil as the main source of oleochemical that helps many industries to compete.

“Indonesia is the biggest oleochemical producer in the world. Now oleochemical capacity in Indonesia reached 11,38 million tons, higher than Malaysia which has 2,5 million to 3 million tons in palm oil - base,” Rapolo said.

He thought, Indonesia is a very lucky country for being the center of oleochemical production. It is very useful in the pandemic namely in producing disinfectant, cleansing products. As the economy gets to recover, oleochemical exports reached 4,2 million tons or about US$ 5,4 billion in 2022. The major export countries were India, China, and countries in Europe.

Executive Director of Gimni, Sahat Sinaga said that the first quarter this year is still lower than it in last year. In the globe, 17 vegetable oil decreased 2% to be about 58 million tons from the target, 61 million tons. In this country, palm oil is not as good as it was, more than US$ 1000/ton.

“Now palm oil exports decrease because of the impacts of recession globally. The impact is that it is hard to target domestic market obligation. The decreasing exports started happening by the late of 2022. Though the export rights reached 6,1 million tons, they were not realized at all. The impact is that the supply of Minyakita gets decreasing because the subsidy for Minyakita is from the exports themselves,” he said.

Sinaga proposed, DMO is not right enough to fulfill palm cooking oil needs. It is better if the government now focuses to help the people in need because they are about 33 million men. Cheap palm cooking oil would be about 42 million kiloliters. But the government through Perum Bulog should distribute it to the people in need. (T2)


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