Bisnis Indonesia, 23 November 2018
National rubber and palm oil industries are getting more pressure from falling global price and weakening demand from export market. The benchmark crude palm oil (CPO) contract for February 2019 delivery on the Malaysia Derivatives Exchange (MDEX) hit its lowest point this year at 1,686 ringgit per metric ton. Center of Reform on Economics (Core) Indonesia economist Pieter Abdullah on Thursday (November 22) said that the CPO industry would likely face deindustrialization and layoffs.
Meanwhile, Indonesian Palm Oil Association (Gapki) Manpower Affairs Head Sumarjono Saragih said CPO oversupply has led to many farmers and plantation owners delaying seed planting and reducing maintenance activities. He asked the government to step up its effort in countering negative campaigns on CPO and strengthen supervision of the mandatory 20% biodiesel blend (B20) program implementation.