InfoSAWIT, JAKARTA -Some countries having muslim people usually increased the demands heading to Ramadhan days. But inMay 2017 unintentionally, they decreased their crude palm oil (CPO) demands. The significant decreasing happened in Pakistan, reaching 31% compared to the previous month or from 207,21 thousand tonsin April decreased to be 142,21 thousand tonsin May.

The decreasing exports to Pakistan because Malaysia has taken the markets by  selling more competitive price and there is no tax for palm oil derivative products. Malaysia’s CPO exports to Pakistan significantly increased in May or twice more than the previous months. The exports might be about 500 – 550 thousand tonsper month but since May, the exports reached more than 1 million tons.

In May, Malaysia did tax exports reaching 7% within referential price about RM3.008,09 or equal to US$ 49 dollar per metric ton andthere is no tax for CPO derivative products. Meanwhile Indonesia has zero tax but should get CPO Fund about US$ 50 for the CPO and US$ 20-30 for derivative products. Meanwhile the exported products from Indonesia to Pakistan reaching 95%- are the derivative products of CPO.

The factors which influenced are Malaysia keeps doing lobby to increase the trade by makingReview Free Trade Agreement between Malaysia and Pakistan. There are lots of challenge of investment which Malaysia offers.

Indonesian Palm Oil Association (IPOA) noted, the decreasing demands also occurred in Middle East countries, about 23%, China and European countries about 7% and 2%. This happened for the countries had more stocks by advantaging the chance and the cheap buying pricesince several months ago. (T2)