Mandatory Biofuel Mix Propels Palm Oil Export
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Jumat, 17 April 2015 14:50 WIB
TEMPO.CO, Jakarta – The mandate to use 15 percent of palm oil-based biofuel (B15) that took effect on April 1, 2015 has caused a surge in the exports of crude palm oil (CPO).
The Indonesian Palm Oil Association (GAPKI) noted Indonesia's CPO exports rose 13.6 percent from 1.79 tons in February 2015 to 2.03 million tons in March 2015.
"The B15 implementation is expected to push up CPO price in international markets as there is a decline in global supply," GAPKI executive director Fadhil Hasan said in Jakarta, Friday, April 17.
In the first quarter of 2015, the year-on-year (YOY) CPO export volume increased by 13.7 percent, from 4.93 million tons in March 2014 to 5.6 million tons in March 2015.
GAPKI noted increasing demand from China, the Middle East, Africa, and the European Union. Demand from China increased by 138.5 percent to 236,080 tons compared to the previous month. African countries recorded a demand rise of 57.3 percent, while the Middle East's demand went up by 44.55 percent and the EU's increased by 29 percent, month-on-month.
BERNADETTE CHRISTINA MUNTHE
