This year some of
Indonesia’s premium export commodities and rubber were posting price downturn
due to low global economic condition. Price of farm in 2014 went down by 2.8%
against 2013. The down turning trend was predicted to continue till end of this
year.
Some buyer countries like India and China were having
economic slowdown so demand from the 2 countries dropped. One of the solutions
was to increase absorption of palm at home to be processed in bio diesel.
The problem was according to Togar Sitanggang, Chairman
of Indonesia’s Oliochemicals Indonesia, The government seemed not serious about
tackling bio diesel problem “Pricing of bio-diesel by Pertamina for bio-diesel
mix was not condusive to producers so they were reluctant to process CPO into
vegetable fuel.” He said.
Pertamina with Government’s approval stipulated price of
diesel based on Mean Oil Plats Singapore (MOPS) which was said to be most
appropriate for Indonesia. Pricing caused producers to lost USD 200/tons.
“The Government must not sit on their laurels. Unless
actions were taken the bio industry at home would die,” he said. Today the
government was evaluating production of bio-diesel for the next tender. Togar
was expecting that the MOPS formula be eliminated, to be replaced by other
formula which was more profitable. Or else the Government’s target to use
bio-diesel with 20% mix would be delayed.
Tony L. apalm researcher predicted that the condition of
low CPO price might last long. The Government could no longer rely on CPO as
source of income.
Many things could be produced of palm wastage to increase
income. From the liquid pool for example with methane capture technology
electricity could be produced. PLN would take any amount of power at profitable
price.
Besides, improved processing technology might increase
yields today from wastage which contained 5% oil. To some European state such
was extremely high because their rape seed had only 1.5% yield. So even palm
wastage still contained more oil.
Wastage like empty plume could be used as bio energy.
This was necessary because this year production cost might increase just as CPO
price. Without other source of income, plantation growers would have
difficulty. (SS)
Business News - February 13, 2015
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