The Palm Scribe

Palm oil companies benefit

Bisnis Indonesia, 25 July 2018

The government’s plan to increase biodiesel mix to 30% (B30 program) starting in January 2020 was welcomed positively by palm oil companies, as the plan will increase the demand for crude palm oil (CPO). Sawit Sumbermas Sarana (SSMS) Commissioner Rimbun Situmorang said that B30 program will accelerate biodiesel consumption to four million metric tons. Thus, Indonesia’s CPO production that reaches 30 million metric tons will be absorbed more by domestic market. Rimbun, who also acts as Citra Borneo Indah (CBI) Group President Director, said that the company is developing two downstreaming projects, a refinery and biodiesel plant and an oleochemical plant. The plants are expected to accommodate more CPO from its subsidiary SSMS. Sinar Mas Group Managing Director Gandi Sulistyo said that the global CPO price has declined, which generally affects the performance of palm oil companies. Sinar Mas Agro Resources and Technology (SMART) will conduct replanting program in all plantations, including plasma plantations, to boost productivity. The company will also optimize the production of CPO derivatives like biodiesel. Tunas Baru Lampung Corporate Secretary Hardy said that the company plans to expand biodiesel market share to overseas.

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