Below is a list with tagged columns and company profiles.

Today's Headlines Palm Oil

  • Indonesia’s New Palm Oil Export Levy to be Implemented in May 2015

    Indonesia’s New Palm Oil Export Levy to be Implemented in May 2015

    Indonesia’s new palm oil export levy is to be implemented in late May 2015. Rida Mulyana, Director General of Renewable Energy at Indonesia’s Ministry of Energy & Mineral Resources, stated that President Joko Widodo signed the regulation last night (05/05). The new levy means that a USD $50 (per metric ton) levy is to be imposed on crude palm oil (CPO) exports, and a USD $30 (per metric ton) levy on processed palm oil product exports. Proceeds from these export levies will be used to fund the government’s biodiesel (subsidy) program.

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  • Indonesia Investments' Newsletter of 19 April 2015 Released

    On 19 April 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic matters such as an update on Bank Indonesia’s interest rate policy, the performance of the rupiah, the March trade balance, updates on coal, palm oil, cement and car sales, GDP growth forecast, alcohol in Indonesia, and more.

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  • Palm Oil Indonesia Update: Futures May Touch 6 Year Low in 2015

    Palm Oil Indonesia Update: Futures May Touch 6 Year Low in 2015

    Due to rising output amid the start of the seasonal increase in production in Indonesia and Malaysia, the world’s two largest crude palm oil (CPO) producers, CPO prices may touch a six-year low in 2015. According to Dorab Mistry, Director at Godrej International, there is one factor that may be able to block CPO prices from reaching this low and that is the successful implementation of Indonesia’s biodiesel program as this would absorb a significant portion of Indonesian CPO output hence reducing downward pressures on CPO prices.

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  • Indonesia Investments' Newsletter of 12 April 2015 Released

    Indonesia Investments' Newsletter of 12 April 2015 Released

    On 12 April 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic matters such as an update on the palm oil industry, CPO export levies, the cancelled Cilamaya Seaport project, Indonesia's foreign exchange (forex) reserves, Standard & Poor’s view on the Indonesian economy, and more.

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  • Indonesia’s New CPO Export Levy also to Be Imposed on Coffee & Rubber?

    Indonesia’s New CPO Export Levy also to Be Imposed on Coffee & Rubber?

    After having decided to introduce export levies for palm oil, the Indonesian government is considering to impose similar measures on rubber, coffee and other commodities in a move to generate capital to invest in the country’s agriculture industry. Per April 2015, a USD $50 (per metric ton) export levy is imposed on crude palm oil (CPO) shipments, and a USD $30 (per metric ton) export levy on processed palm oil export products. Proceeds from these CPO levies will be allocated to finance the government’s biodiesel program.

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  • Palm Oil Industry Update Malaysia and Indonesia

    Palm Oil Industry Update Malaysia and Indonesia

    Crude palm oil (CPO) shipments from Malaysia climbed 18 percent month-to-month (m/m) in March as firms rushed to export CPO ahead of the (re)introduction of a 4.5 percent CPO export tax in April. This export tax had been scrapped since September 2014 in an effort to boost global CPO demand and prices. A median suggests that CPO production in Malaysia rose 18 percent (m/m) to 1.32 million tons in March, which would mean that palm oil production in Malaysia rose for the first time in seven months.

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  • Indonesian Government Flexible on Mandatory Letter of Credit (L/C)

    Amid unclarity over the newly introduced mandatory use of letters of credit (L/C), the Indonesian government has showed some flexibility. Starting from Wednesday (01/04) Indonesian exporters of four key commodities - coal, palm (kernel) oil, oil & gas, and minerals - are required to use L/C for all export deals. This new rule was developed in order to increase Indonesia’s export earnings and enhance monitoring sales of the country’s natural resources. However, a temporary exemption is now made possible.

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  • Indonesia Investments' Newsletter of 29 March 2015 Released

    Indonesia Investments' Newsletter of 29 March 2015 Released

    On 29 March 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic matters such as an analysis of the rupiah performance, economic growth forecasts by international institutions, the government’s plan to revise the palm oil export tax and relax the mineral ore export ban, and more.

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  • Palm Oil Indonesia: Government to Change CPO Export Policy

    Palm Oil Indonesia: Government to Change CPO Export Policy

    The government of Indonesia plans to adjust its crude palm oil (CPO) export tax policy. Chief Economics Minister Sofyan Djalil said that the government is about to impose a fixed levy of USD $50 per metric ton on CPO exports when CPO prices decline below the government’s threshold of USD $750 per ton, implying that it will become impossible for Indonesian palm oil exporters to ship output without charge. Currently, palm oil exporters can export CPO output duty-free as prices have been below the USD $750 threshold since September 2014.

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  • Palm Oil Update Indonesia: Pessimistic Outlook CPO Price

    It is estimated that Indonesia’s export of crude palm oil (CPO) and its derivatives have fallen in February 2015 due to sluggish demand from India and China, the world’s two largest palm oil importers, while the globe’s soybean output increased (soybean oil is a close substitute to palm oil for food and biodiesel uses). Based on a median of six palm oil growers, analysts and official estimates, Indonesian shipments of palm oil (including palm kernel) fell six percent month-to-month (m/m) to 1.7 million metric tons in February.

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Latest Columns Palm Oil

  • Middle of the Road Policy Regarding Indonesia's Palm Oil Industry

    Palm Oil Moratorium Indonesia Investments

    Last week, president Susilo Bambang Yudhoyono extended the moratorium on new permits to convert natural forests and peat lands for a further two years. In 2011, Indonesia's government signed the two-year primary forest moratorium that came into effect on 20 May 2011 and expired in May 2013. This moratorium implies a temporary stop to the granting of new permits to clear rain forests and peat lands in the country. The moratorium particularly aims to limit Indonesia's quickly expanding palm oil industry.

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  • Import-Export Trade and Investment between USA and Indonesia

    Although the United States continues its traditional focus on direct investments in developed countries, primarily in Western Europe, there has been a significant rise in US investments in Indonesia in recent years. Whereas US investments in the developed economies of Western Europe is mostly found in the financial sector and through holding companies, in developing Asia, the US is more focused on the manufacturing sector due to lower production costs. In the last two years, the US emerged as the second-largest investor in Indonesia after Japan.

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  • Palm Oil Giant Astra Agro Lestari Distributes USD $111 Million in Dividends

    Shareholders of Astra Agro Lestari, Indonesia's largest agribusiness company by value (which is particularly engaged in palm oil and rubber plantations), agreed to distribute IDR 1.08 trillion (USD $111 million) in dividends to its shareholders. The allocated amount is equivalent to about 45 percent of the company's net profit in 2012. Dividend per share is set at IDR 685 (USD $0.071). Last November, the company had already paid interim dividend of IDR 230 per share. Final dividend will be paid on 3 June 2013.

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  • Indonesian Palm Oil Companies Report Declining Net Profit

    Indonesian Palm Oil Companies Report Declining Net Profit

    Indonesian companies engaged in the production of a variety of agricultural products, such as palm oil, experienced a rather poor year in 2012 regarding net profit. Global economic turmoil has reduced the world's consumption of palm oil in both the developed markets and developing markets. In particular decreased demand from China, the world’s biggest buyer after India, made a negative impact on the balance sheets of Indonesian companies.

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