Biodiesel Absorption up by 30.5 Percent

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    TEMPO.CO, Jakarta - PT Pertamina is said to have 519,000 kiloliters of biodiesel in January and February 2016. The biodiesel is used in the government's program to mix 20 percent of bifuel in fuel oil, as the B20 mandate.

    "The volume increased of 30.5 percent compared to last year," Fadhil Hasan, executive director of the Palm Oil Business Association (Gapki), said yesterday on Tuesday, March 29.

    According to Fadhil, the domestic absorption of biodiesel is targeted to reach 3.2 million kiloliters this year. Meanwhile, the Fund Management Agency of Oil Palm Plantations (BPDPKS) estimates that Pertamina can absorb 2.5 million kiloliters.

    "Looking at the performance of the first two months, the target can be achieved by the end of the year, Fadhil said.

    Fadhil said that palm oil exports in February reached 2.29 million tons, up nine percent over the previous month. In annual terms (year-on-year), Indonesia's palm oil exports in January and February 22 percent.

    Coordinating Minister for the Economy Darmin Nasution said that the B-20 mandate had also successfully boost CPO prices. "The B-20 not only creates demand for CPO, but also protects small farmers from potential crises," he said.

    According to Gapki's data, crude palm oil (CPO) and core palm kernel oil (CPKO) production in January reached 2.99 million tons. However, in February, production fell by 9.6 percent. Meanwhile, Indonesia's palm oil stock in January reached 4.36 million tons, which reflects a 16 percent decline.

    In February, global CPO prices moved in the range of US$575-US$657 per metric ton with an average price of US$628.9 per ton. The average price in February was 13 percent higher than January prices. In the first 3 weeks of March, global CPO price moved between US$645 and US$717.5 per metric ton.