InfoSAWIT, JAKARTA – According to Indonesian Palm Oil Association (IPOA) the average crude palm oil (CPO) based on CIF Rotterdam in August 2019 was US$ 541 per metric ton and it was the highest monthly average since February 2019. By the end of August, it was increasing.

Executive Director of IPOA, Mukti Sradjono hoped that it would be better. He also said that Indonesia as the biggest CPO producer in the world should strengthen its influence in the balance of supply-demand and the price determination.

The implementation of biodiesel mixture to diesel 20% or B20 to be B30 would increase the domestic consumption and it is hoped to make the better price. But concerning that crude palm oil and crude oil are in fluctuation, the it needs arrangement so that PT. Pertamina or other producers would not be worry.

“The other things to do are the CPO direct usage to power plants of PT. Perusahaan Listrik Negara that there are some tests in some regions, and the enhancement to control the stocks by multiplying the tank capacity in palm oil factories,” he said in the official statement to InfoSAWIT, Thursday (31/10/2019).

The reason is that it is cheap and could be the supportive additional facility in the factories when there are leaps of production or transportation issues. (T2)