Below is a list with tagged columns and company profiles.

Today's Headlines Palm Oil

  • Challenges to the Indonesian Economy: Global Oil Price & US Normalization

    Governor of Indonesia’s central bank (Bank Indonesia) Agus Martowardojo said that there are two main global challenges that are being faced by Southeast Asia’s largest economy and which can impact negatively on the nation’s economy. These challenges are the low global oil prices (which have fallen below USD $50 per barrel) and the monetary policy normalization of the US Federal Reserve amid the structural economic recovery of the USA. This policy involves higher US interest rates (expected in the second half of 2015) and a bullish US dollar.

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  • Crude Palm Oil Indonesia Update: Limited Production Growth in 2015

    Indonesia’s production of crude palm oil (CPO) is estimated to reach 31 million tons this year, up from an expected 29.5 million tons in 2014, according to the Indonesian Palm Oil Board (DMSI). Similar to last year, CPO production growth is limited due to unconducive weather conditions in the world’s largest producer and exporter of palm oil. Moreover, old trees have become less productive, while the younger generation of planted trees have not yet reached an optimal production age.

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  • IPO of Golden Plantation on the Indonesia Stock Exchange

    Immediately after the Indonesia Stock Exchange (IDX) opened on Tuesday (23/12), shares of palm oil producer Golden Plantation, which was listed today with company code GOLL, soared 21 percent to IDR 348 per share (from the initial price of IDR 288). Golden Plantation was the 24th (and last) company to conduct an initial public offering (IPO) on the IDX in 2014. The company owns seven oil palm plantations with a total area of 49,000 hectares. About 35 percent of this total area is planted.

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  • Indonesia Investments' Newsletter of 21 December 2014 Released

    On 21 December 2014, 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 the rupiah exchange rate performance, a palm oil update, Indonesia’s economic growth in 2015, an update on the tender for the Soekarno-Hatta Railway Project, and more.

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  • Indonesia Investments' Newsletter of 14 December 2014 Released

    On 14 December 2014, 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 the central bank’s interest rate policy, an update on palm oil, the middle income trap, November car sales, the performance of the rupiah exchange rate, legal matters regarding mining, and more.

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  • Malaysia & Indonesia Expected to Maintain Duty-Free Palm Oil Exports

    The world’s two largest crude palm oil (CPO) producers and exporters, Indonesia and Malaysia, are expected to maintain their zero percent export tariffs for CPO in January 2015 according to Dorab Mistry, Executive at Godrej Industries Ltd (India's leading manufacturer of oleochemicals), in an interview to international news agency Reuters. Authorities in Malaysia (since September 2014) and Indonesia (since October 2014) have implemented duty-free CPO shipments in an effort to boost global CPO demand and prices.

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  • Palm Oil Industry in Indonesia: Update on CPO Production & Export

    Exports of Indonesian crude palm oil (CPO) and its derivatives may increase to 21.6 million tons (collecting about USD $16.0 - 17.3 billion in foreign exchange) in 2015. Meanwhile, Indonesian CPO production is estimated to reach 32.5 million tons next year while the CPO price is estimated to range between USD $740 - 800 per ton. However, provided that the Indonesian government will extend its current zero export tariff scheme for CPO exports, then the country’s CPO exports are expected to accelerate.

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  • Indonesia Investments' Newsletter of 30 November 2014 Released

    On 30 November 2014, 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 the country’s revised inflation outlook, participation in the Asian Infrastructure Investment Bank, updates on palm oil and coal, car sales, Jokowi’s development targets, and more.

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  • Analysis & Forecast of Indonesia’s Palm Oil Export and CPO Prices

    Exports of Indonesian crude palm oil (CPO) and its derivatives increased 45.8 percent month-on-month (m/m) to 2.47 million metric tons in October 2014 primarily supported by the zero export tariff that was implemented by the Indonesian government per 1 October. Indonesia has a mechanism that when the average CPO price (which is calculated using international and local CPO prices) drop below USD $750 per metric ton, the export tax is scrapped. In early September, Malaysia had already implemented a zero CPO export tax.

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  • Crude Palm Oil Update: Prices & Production in Indonesia & Malaysia

    Forecasts for crude palm oil (CPO) futures in 2015 are positive as prices are expected to rise on declining inventories in Malaysia, growing Indian CPO imports, and falling Indonesian CPO exports as domestic biodiesel demand rises in Southeast Asia’s largest economy. Malaysian palm oil futures rose to a four-month high at the start of the week (touching 2,345 ringgit per metric ton) partly due to sharp ringgit depreciation (which makes CPO relatively cheap for other currency-holders). However, today (06/11) futures fell 1.3 percent to 2,223 ringgit.

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Latest Columns Palm Oil

  • Indonesia Benefits from Near-Record High Palm Oil Price, But India’s Demand May Drop

    Although there is plenty of opposition to – and criticism on – Indonesia for allowing crude palm oil (or CPO) to play a big role in the domestic economy (Indonesia being the world’s largest producer and exporter of CPO), the country is currently feeling the windfall from soaring CPO prices. And, it is contributing to Indonesia’s recovery from the severe – and still ongoing – novel coronavirus (COVID-19) crisis.

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  • Palm Oil Industry Indonesia: CPO Price Under Pressure in Early March

    Several negative sentiments are putting pressure on the crude palm oil (CPO) price in the first week of March 2018. These sentiments are expected to continue pushing downward pressure on the CPO price in the remainder of this week. On Monday (05/03) the CPO price on the Malaysia Derivatives Exchange (May 2018 shipments) fell 0.28 percent to 2,467 ringgit per metric ton. Compared to one week earlier, the price has now declined 2.91 percent.

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  • WTO Rules in Favor of Indonesia on EU's Biodiesel Anti-Dumping Duties

    In the battle between Indonesia and the European Union (EU) regarding the latter's anti-dumping duties on Indonesian biodiesel exports, Indonesia won six out of seven legal challenges. Indonesia had challenged the EU's duties, set in 2013, on biodiesel imports from Indonesia and Argentina. The World Trade Organization (WTO) ruled, largely, in favor of Indonesia.

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  • Palm Oil Update Indonesia: Rising CPO Price in Q1-2018?

    The crude palm oil (CPO) price is expected to strengthen in the first quarter of 2018 due to the impact of the La Nina weather phenomenon and rising CPO demand in the traditional big CPO importing countries. This is good news for stakeholders in the palm oil industry as the price has been sliding around 16 percent so far this year (toward the 2,700 Malaysian ringgit per ton level).

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  • What Are Indonesia's Top Foreign Exchange Earners?

    Foreign exchange earnings are important assets for a national economy. Therefore, many nations have recently been taking a much more protectionist approach vis-à-vis trade in an effort to strengthen their trade positions, generate trade surpluses, hence see the inflow of more foreign exchange earnings. Foreign exchange assets support a stable local currency as well as economy.

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  • Indonesia Launched Palm Oil Rejuvenation Scheme for Smallholders

    The Indonesian government is eager to boost domestic crude palm oil (CPO) production, but not at the expense of tropical forest (by adding new oil palm plantations). Instead, a new government program aims to replant 20,000 hectares of smallholder palm oil plantations in 2017 under the condition that farmers meet the requirements that are stipulated by Indonesian Sustainable Palm Oil (ISPO) certification.

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