Rising Trend of CPO Price Expected to Continue
15 October 2015 07:18 WIB
TEMPO.CO, Jakarta - The rising trend of the crude palm oil (CPO) price in international market is expected to continue, the Public Service Agency for Crude Palm Oil Levy (CPO) said.
"The trend in three stock exchanges -- ICDX (Indonesia), MDEX (Malaysia) and Rotterdam is positive," said President Director of the agency Bayu Krisnamurthi.
The positive trend followed an increase in bio-diesel purchases by the state oil and gas company Pertamina in August, 2015, Bayu noted.
"The price was up and down but tended to increase in the three stock exchanges," he said.
He attributed the rise in CPO price to the governments policy in forming a body to manage fund in levy from oil palm plantations and the mechanism of levy and the B15 regulation that requires the blending of bio-diesel with diesel oil with a ratio of 15 percent for motor vehicle fuel.
The ratio is to be increased to 20 percent in 2016.
"The positive trend is expected to last until reaching a balance in mid 2016," he said.
On October 8 this year, the price of CPO was recorded at US$570 per ton , up from US$500 on August 26 this year after falling from US$660 per ton in mid 2015.
ANTARA
