Indonesian Ministry of Commerce conveyed a protest through an official letter sent to the European Union Trade Commissioners due to the discriminatory for palm-based biodiesel products. On January 17th, 2018, the European Parliament officially approved the abolition of Palm Oil as the basic material of biodiesel energy that was passed through a vote at the European Parliament Building, Strasbourg, France.
China’s appetite for Palm Oil heading into the Lunar New Year holiday may be lower than expected as China’s own edible oil inventories have also been rising after record soybean imports and strong purchases of rapeseed oil, which reduce buyers’ appetite for more.
Malaysian CPO export data for January 1st – January 15th 2018 decreased to 564.968 metric ton compared to December 1st – December 15th 2017 at 596.862 metric ton and Malaysian CPO production data for December 2017 increased to 1.834.167 metric ton compared to December 2016 at 1.473.717 metric ton.
RED II Proposal threat Indonesian Crude Palm Oil Export
European Union Parliament had approved the Renewable Energy Directive (RED) II proposal. This approval will exclude palm oil-made bio-diesel utilization. The proposal were planned to be effective in 2021 and threat Indonesian crude palm oil export by reducing the palm oil demand in destination country. Furthermore, the decision is feared to put pressure on Indonesian crude palm oil price. Note that majority of palm oil exported to European Union is used in bio-diesel production.
Indonesia Government to Continue Rejuvenation of Individual Palm Oil Fields Program
The Program is expected to starts in February and Riau would be the first place to the program implementation. The government replanting program, according to Darmin Nasution, is targeted to 185 hectare in 20 provinces and expected to increase productivity around IDR 125 trillion in a year.