Processed CPO Trends Increase This Year

The Executive Director of the Indonesian Vegetable Oil Industry Association (GIMNI), Sahat Sinaga, said that there will be an increase in demand for CPO processed exports this year. The target for CPO processed exports in 2017 is approximately 18.35 million tons. This number is an increase of approximately 10% compared to last year’s export performance, which was at 17.9 million tons.

"The CPO processed goods with the most interest in the export market are refined oil and oleo-chemical oil," Sahat explained to KONTAN on Tuesday (14/3).

He explained that refined oil is frequently needed by the food and food ingredients industry. Meanwhile, oleo-chemical oil is needed by the cosmetics and plastics industry.

Sahat emphasized that Indonesia is no longer targeting the European market. "Currently, the potential markets are in the Middle East and Central Asia. The European market has too much demand, but does not want to increase prices," he said.

Meanwhile, there has been a decrease in demand for raw CPO products. This year’s export target is approximately 7.9 million tons. Meanwhile, the performance of raw CPO exports in 2016 was 8.77 million tons. "The trend in demand is indeed greater for CPO processed goods. This is also in accordance with the Government’s downstream program," Sahat concluded.

http://industri.kontan.co.id/news/gimni-tren-cpo-olahan-meningkat-tahun-ini