TEMPO.CO, Jakarta - Joko Supriyono, chairman of the Indonesian Oil Palm Producers Association, expressed pessimism that CPO prices in the global market would return to normal after the crisis.
"I don't think the price will increase. At least it will remain at US$600-700 per metric ton," Joko said on Wednesday, January 20, 2016.
Joko revealed that the average price of CPO in 2015 was set around US$614.2 per metric ton, declining by 25 percent from US$818.2 per metric ton in 2014.
"So, we can't expect a significant price increase," Joko added.
According to Joko, the declining CPO price in the global market was caused by the plummeting oil prices. In addition, Iran's plan to enter the international oil market could lower the international oil prices even further. Iran was predicted to have the capability to increase its oil production by 500,000 barrels per day.
Joko added that CPO products had to face fierce competitions with non-CPO products, particularly soybean, sunflower, and rapeseed. Joko explained that the vegetable oil production stood at 175.8 million tons in 2014, while the CPO production stood at 66.6 million tons in the same year.
Joko said that CPO producers must anticipate the competition by working with other countries producing the same commodity.
MAWARDAH NUR HANIFIYANI