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Gapki sees increased domestic CPO demand from B20 policy
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A 20 percent blended biodiesel (B20) pump (Courtesy of/The Indonesian Palm Oil Producers Association (Gapki) )
T
he Indonesian Palm Oil Producers Association (Gapki) has recorded a positive impact in the domestic market absorption of crude palm oil (CPO) as a result of the 20 percent blended biodiesel (B20) policy.
Gapki’s data indicates a growing shift from non-subsidized fuels to B20 over the past two months, with the domestic market absorbing 400,000 tons of CPO in September and 519,000 tons in October. Previous data shows an average monthly CPO absorption of 215,000 to 290,000 tons.
Gapki executive director Mukti Sardjono expressed optimism that CPO absorption would continue to increase in the coming months.
“The mandatory use of B20 has not been implemented optimally. As [the policy's] implementation improves, [CPO] absorption will increase,” Mukti said in Jakarta on Friday as quoted by kontan.co.id.
The government introduced the expanded B20 usage policy on Sept. 1 as a measure to reduce crude oil imports and to expand the domestic market for CPO.
Mukti expected the government to soon commence road tests for 30 percent blended biodiesel (B30) to drive domestic demand for the commodity.
October exports of CPO and derivative products, including oleochemical and biodiesel, decreased to 3.35 million tons, a month-on-month decline of 5 percent. Meanwhile, palm kernel oil (PKO) exports increased to 3.14 million tons in October, or a month-on-month increase of 5 percent. (bbn)
