Gapki says B20 policy to raise global CPO price
The Jakarta Post
The Indonesian Palm Oil Producers Association (Gapki) believes that the government policy on the mandatory use of 20 percent blended biodiesel ( B20 ) would help raise the price of crude palm oil (CPO) in the global market.
The strong domestic demand of CPO from the B20 policy would cut supply to other markets, Gapki chairman Joko Supriyono said in a statement on Wednesday, adding that Indonesia, the world's largest CPO producer, produced about 42 million tons of the commodity annually.
“Raw materials would not pose any difficulty for the B20 producers,” Joko said in response to President Joko “Jokowi” Widodo's pledge to push for the implementation of the policy, which was issued in early September.
During Monday's opening of the International Palm Oil Conference (IPOC) 2018 and 2019 Price Outlook in Nusa Dua, Bali, the President said that the policy on the mandatory use of B20 was intended to absorb the commodity amid its weakening global price.
Gapki's Joko said the successful implementation of the B20 policy would also significantly reduce oil imports and save a large amount of foreign exchange, which the country badly needed to narrow the current account deficit.
The IPOC 2018 is to feature several notable speakers, including Coordinating Economic Minister Darmin Nasution, Trade Minister Enggartiastoi Lukita and National Development Planning Agency (Bappenas) head Bambang Brodjonegoro, as well as foreign speakers like James Fry of LMC International, Dorab Mistry of Godrej International Ltd and Thomas Mielke of Oil World. (bbn)
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