Bisnis Indonesia, 1 November 2018
Institute for Development of Economics and Finance (Indef) economist Ahmad Heri Firdaus said mandatory 20% biodiesel blend (B20) policy could reduce global crude palm oil (CPO) oversupply. However, the policy is unable to help the domestic CPO industry. He said on Wednesday (October 31) that Indonesia still needed international support because global CPO price keeps decreasing. According to the World Bank Group, CPO was traded at $529 a metric ton on Wednesday (October 31). Indonesia needs to encourage Malaysia to raise their domestic CPO consumption by accelerating B20. Ahmad said that Indonesia should also encourage India to reduce its import duty on Indonesian CPO. Indonesia needs to promote its CPO to cope with impacts from negative campaigns by the European Union, he said.
Meanwhile, Indonesian Palm Oil Association (GAPKI) Trade Deputy Chair Togar Sitanggang told “Bisnis” that Indonesia continued to encourage Malaysia to raise the CPO portion in its biodiesel. However, Malaysia has yet to show significant progress. GAPKI Chair Joko Supriyono remained optimistic that the mandatory B20 program will be able to boost global CPO price. Thus, he is working on completing the B20 distribution.