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Bright Outlook for CPO Market in 2015

4 September 2014 15:40 WIB

Kelapa sawit. REUTERS/Roni Bintang

TEMPO.CO, Jakarta - Fadhil Hasan, executive director of the Indonesian Palm Oil Association (GAPKI), projected a growth from the palm oil market next year. He said that the volume of palm oil exports will increase in 2015, as there is a rising global purchasing power for the CPO.

In his presentation on 'Growth Opportunities for Indonesian Palm Oil Market' in Jakarta, September 3, Fadhil said the CPO businesses are targeting a production volume of about 33 million tons next year, an increase of 9 million tons from this year. More than 60 percent of the production will be exported to global markets such as India, Pakistan, South Korea, and countries in Eastern Europe.

He said Indonesia is trying to expand new export targets, Turkey for example.

Palm oil processing for domestic consumption is also expected to increase. With Pertamina committing to run bio-diesel programs, Fadhil said, there will be about 10.7 million tons of production allotted for domestic needs.

Regarding prices, Fadhil is certain that prices will be more stable next year, ranging between US$800 and US$850 per metric ton.

YOLANDA RYAN ARMINDYA



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