Indonesian Palm Oil Companies Post Good Results in 9M-2014

9 Months - 2014 Corporate Earnings Indonesian Palm Oil Producers:

Company	Net Profit – (Loss) 9 months 2014	Growth      yoy	Revenues 9 months 2014	Growth      yoy
Astra Agro Lestari	IDR 1.88 trillion	+107%	IDR 11.75 trillion	+41%
Austindo Nusantara Jaya	USD $20.0 million	+1005%	USD $127.4 million	+11.3%
Dharma Satya Nusantara	IDR 517.5 billion	+361%	IDR 3.73 trillion	+39%
Gozco Plantations	IDR 26.7 billion	+70%	IDR 365.5 billion	+38.1%
Jaya Agra Wattie	IDR 73.5 billion	+37.8%	IDR 621.4 billion	+35.9%
PP London Sumatra Indo.	IDR 698.6 billion	+57.7%	IDR 3.5 trillion	+22%
Providend Agro	IDR 185.4 billion	+163.8%	IDR 801.2 billion	+68.1%
Salim Ivomas Pratama	IDR 557.3 billion	+226%	IDR 10.8 trillion	+13.3%
Sampoerna Agro	IDR 310.8 billion	+916%	IDR 2.48 trillion	+72%
SMART	IDR 1.2 billion	+38.7%	IDR 25.0 trillion	+49.3%
Tunas Baru Lampung	IDR 325.2 billion	+343.6%	IDR 4.5 trillion	+86%
Total	IDR 6.01 trillion	+155%	IDR 65.1 trillion	+40%

^{Various sources}

The Trade Ministry of Indonesia confirmed that the export tax for crude palm oil will remain at zero percent in November 2014 as the average of international and local CPO prices is still below the USD $750 per metric ton threshold. When this average price exceeds USD $750 per metric ton, then Indonesia applies export tariffs for CPO exports.

Indonesian Palm Oil Production and Export:

	2007	2008	2009	2010	2011	2012	2013	2014¹
Production (million metric tons)	16.8	19.2	19.4	21.8	23.5	26.5	27.0	25.0
Export (million metric tons)	n.a	14.2	15.5	15.6	16.5	18.1	21.2	21.1
Export (in USD billion)	n.a	15.6	10.0	16.4	20.2	21.6	19.0	18.9

^{¹ indicates forecast
Sources: Food and Agriculture Organization of the United Nations, Indonesian Palm Oil Producers Association (Gapki) and Indonesian Ministry of Agriculture}

Crude Palm Oil Production in Malaysia

Meanwhile, CPO stockpiles in Malaysia (the world’s second largest producer and exporter, after Indonesia) may decline 14 percent from 2.1 million tons in late September 2014 according to the Malaysian Palm Oil Board (MPOB). Main reasons for falling inventories are increased export demand as well as growing domestic food and fuel demand. The country’s palm oil reserves are expected to decline further for the remainder of the year as demand from China and India may pick up. Moreover, Malaysia recently unveiled a plan to boost the palm oil content of biodiesel from five to seven percent in a bid to lower CPO stockpiles and boost the price.

Malaysia produced 14.7 million tons of CPO in the first nine months of 2014 and is projected to produce around 20.5 million tons of CPO in 2015.

Further Reading:

• Crude Palm Oil (CPO) Exports from Indonesia Sluggish on Weak Demand
• Overview of the Palm Oil Industry in Indonesia

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