TEMPO.CO, Jakarta - The government is confident that crude palm oil (CPO) exports will increase in 2015, as an improving global economy will keep overseas demand for the commodity high and prices are projected to continue rising.
Nus Nuzulia Ishak, Trade Ministry director for export development, said this year's global CPO sales reached US$42.7 billion. Indonesia accounts for 43.68 percent of the global supply with US$17.3 billion worth of CPO export. Another CPO giant Malaysia accounted for 36.4 percent (US$14.9 billion).
Fadhil Hasan, executive director of the Indonesian Palm Oil Association, expects CPO prices to stabilize next year at US$800 to US$850 per metric ton. Along with improvement in the global economy, the demand for CPO will rise, pushing its prices.
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, as well as aiming for new export destinations such as Turkey.
AYU PRIMA SANDI |YOLANDA RYAN ARMINDYA