Below is a list with tagged columns and company profiles.

Today's Headlines Palm Oil

  • Palm Oil Update Indonesia: Export Tax Scrapped Again in July 2016

    Palm Oil Update Indonesia: Export Tax Scrapped Again in July 2016

    An official at Indonesia's Trade Ministry said Southeast Asia's largest economy is to scrap the export tax on crude palm oil (CPO) again. In July 2016 the export tax will be lowered to zero, from USD $3 per ton in the preceding month, due to sliding palm oil prices. The Indonesian government expects palm oil prices to fall in July because after the Ramadan month and subsequent Idul Fitri celebrations are finished demand for the edible is set to decline.

    Read more ›

  • Forest Fires & Haze: Singapore Eager to Prosecute Indonesians

    Forest Fires & Haze: Singapore Eager to Prosecute Indonesians

    Indonesian Vice President Jusuf Kalla stated that he does not agree with Singapore's attempts to take legal action against those Indonesian individuals and companies that are responsible for the forest fires on the islands of Sumatra and Kalimantan that resulted in the severe haze that spread to Singapore (and other parts of Southeast Asia) in 2015. The toxic smog caused economic costs in Indonesia's neighboring countries. Kalla said Indonesia will not support Singapore in this case as the offense occurred in Indonesia, not in Singapore. As such, it would be an attack on Indonesia's sovereignty.

    Read more ›

  • Rainforest Action Network: Workers Exploited at Indonesia's Palm Oil Estates

    Rainforest Action Network: Workers Exploited at Indonesia's Palm Oil Estates

    San Francisco-based environmental organization Rainforest Action Network (RAN) released a report last week that claims Indonesian workers - including children - at North Sumatran palm oil plantations are being exploited. On two palm oil plantations owned by PP London Sumatra Indonesia, a unit of the Indonesian Indofood Group, researchers of RAN found evidence of child labor, unethically low wages, as well as other forms of worker exploitation. The report also links American multinational food and beverage firm PepsiCo Inc's products to the exploitation.

    Read more ›

  • Crude Palm Oil Industry Update Indonesia: CPO Export & Production

    Crude Palm Oil Industry Update Indonesia: CPO Export & Production

    Palm oil shipments from Indonesia surged 20 percent month-on-month to 2.09 million tons in April 2016 (from 1.74 million tons in the preceding month) according to the latest data from the Indonesian Palm Oil Producers Association (Gapki). Fadhil Hasan, Executive Director of Gapki, said Indonesia's palm oil exports are supported by declining edible oil output in several countries. High rainfall in Argentina and Brazil disturbed local soy bean harvests, while the US soybean harvest is weak as well. Furthermore, rapeseed harvests in China, India and the European Union are weak too, hence boosting demand for CPO.

    Read more ›

  • Palm Oil Update Indonesia: CPO Price, Rejuvenation & Moratorium

    Palm Oil Update Indonesia: CPO Price, Rejuvenation & Moratorium

    The Indonesian Oil Palm Smallholders Association (Apkasindo) requests the government to support the replanting of 2.5 million hectares of oil palm plantations owned by smallholder farmers. Through Minister of Agriculture Regulation No.18/2016 on Guidelines for the Rejuvenation of Oil Palm Plantations, the government is lawfully forced to support smallholder farmers regarding the rejuvenation of oil palm trees. To finance this program, the government takes funds from the Indonesian Oil Palm Estate Fund (BPDP-KS). The BPDP-KS collects funds from the export levies for palm oil products.

    Read more ›

  • Sampoerna Agro Best Indonesian Plantation Company in Terms of Revenue

    Sampoerna Agro Best Indonesian Plantation Company in Terms of Revenue

    Only five plantation companies listed on the Indonesia Stock Exchange (IDX) managed to post higher revenue in the first quarter of 2016 (compared to the same quarter one year earlier). Of the 14 plantation companies listed on the IDX, four still need to publish their Q1-2016 corporate earnings (Golden Plantation, Sawit Sumbermas Sarana, Multi Agro Gemilang Plantation, and Tunas Baru Lampung). Sampoerna Agro was the company with the highest revenue growth among Indonesia's listed plantation companies in Q1-2016.

    Read more ›

  • Indonesia Investments' Newsletter of 1 May 2016 Released

    Indonesia Investments' Newsletter of 1 May 2016 Released

    On 1 May 2016, 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 over the last seven days. Most of the topics involve political and economic matters such as the 12th economic policy package, problems related to the land reclamation project off the coast of Jakarta, an update on inflation, the palm oil industry, smartphone usage, the most profitable companies, and much more.

    Read more ›

  • Commodities: Indonesia's Palm Oil Export Tax Back in May 2016

    Commodities: Indonesia's Palm Oil Export Tax Back in May 2016

    For the first time since October 2014, Indonesia's palm oil exporters will have to pay an export tax on crude palm oil (CPO) shipments as the government's reference CPO price was set at USD $754.10 per ton in May (the level of USD $750 per ton separates taxable from non-taxable shipments). The Indonesian government announced that it will impose a USD $3 per ton tax on CPO exports in May 2016. Palm oil is the key foreign exchange earner for Indonesia in terms of non-mining export products. The country is the world's largest producer and exporter of CPO, followed by Malaysia.

    Read more ›

  • Palm Oil Indonesia: After Dry El Nino, Will Wet La Nina Impact CPO Output?

    Palm Oil Indonesia: After Dry El Nino, Will Wet La Nina Impact CPO Output?

    Franky Oesman Widjaja, Chairman of Sinar Mas Agribusiness & Foods, expects Indonesia's crude palm oil production in 2016 to drop by 5-10 percent (y/y) due to the impact of the El Nino weather phenomenon that brought extreme dry weather to Southeast Asia in 2015. However, in several Indonesian regions palm oil plantations are now being plagued by floods giving rise to speculation whether El Nino is to be followed by La Nina. La Nina - the opposite of El Nino - brings cooler than average sea temperatures in the central and eastern tropical Pacific Ocean causing wetter-than-usual weather in Southeast Asia.

    Read more ›

  • Indonesia Investments' Newsletter of 24 April 2016 Released

    Indonesia Investments' Newsletter of 24 April 2016 Released

    On 24 April 2016, 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 over the last seven days. Most of the topics involve political and economic matters such as Joko Widodo's visit to Europe, the monetary policy of Bank Indonesia, Indonesia's Gini ratio, the palm oil and coal sectors, foreign ownership of property in Indonesia, the problems surrounding infrastructure spending in Indonesia, and more.

    Read more ›

Latest Columns Palm Oil

  • Indonesian Crude Palm Oil Firms in Focus: Sampoerna Agro

    Indonesian Crude Palm Oil Firms in Focus: Sampoerna Agro

    The higher crude palm oil (CPO) price will have a positive impact on the corporate earnings of Indonesian CPO producers, including Sampoerna Agro. Benchmark palm oil futures for March 2017 delivery on the Bursa Malaysia Derivatives Exchange were at 3,161 ringgit (approx. USD $706) per ton at the end of last week, near a four and a half year high. However, not all analysts advise investors to purchase shares of Sampoerna Agro, a company that is listed on the Indonesia Stock Exchange.

    Read more ›

  • Palm Oil Industry Indonesia: New Industrial Estate in Berau

    Palm Oil Industry Indonesia: New Industrial Estate in Berau

    Indonesia's Industry Ministry selected the industrial estate in Berau (East Kalimantan) as the center for the downstream palm oil industry in Kalimantan. Furthermore, Panggah Susanto, the Industry Ministry's Director General for Agriculture industry, said the government proposes to select Berau as one of the palm oil centers within the Palm Oil Green Economic Zone (POGEZ) scheme. Berau is chosen to replace Bontang because the former has 3,400 hectares of (clear and clean) industrial land available, while land in Bontang still falls under "protected forest" status.

    Read more ›

  • Greenpeace Takes Action against Palm Oil Trader IOI in Rotterdam

    Greenpeace Takes Action against Palm Oil Trader IOI in Rotterdam

    Non-governmental environmental organization Greenpeace blocked all import and export channels of crude palm oil (CPO) trader IOI on Tuesday morning (27/09) in the harbor of Rotterdam (the Netherlands), the city that acts as palm oil’s gateway into Europe. Greenpeace activists decided to take action after a Greenpeace International report showed that palm oil from companies that are reportedly involved in forest destruction, peatland fires and child labor is still flowing into Europe and the USA through IOI facilities.

    Read more ›

  • Palm Oil Price Touches Highest Position So Far in 2016

    Palm Oil Price Touches Highest Position So Far in 2016

    The crude palm oil (CPO) price touched its highest level so far this year. On Tuesday (20/09) palm oil futures (December delivery) - traded on the Kuala Lumpur exchange - ended the day at 2,690 ringgit (approx. USD $651 per metric ton). Palm oil prices are rising as CPO production in Indonesia and Malaysia will remain subdued this year due to droughts that were brought by the El Nino weather phenomenon earlier in 2016, while there is expectation of a rather wet season later this year due to the La Nina weather phenomenon.

    Read more ›

  • Indonesian Plantation Companies in Focus: Astra Agro Lestari

    Indonesian Plantation Companies in Focus: Astra Agro Lestari

    Expectation of rising fresh fruit bunches (FFB) and crude palm oil (CPO) volumes in the second half of the year should boost the corporate earnings of Astra Agro Lestari, one of Indonesia's leading agribusiness companies. Meanwhile, sentiments related to the La Nina weather phenomenon and rising CPO demand on the back of the Indonesian government's biodiesel program should support CPO prices. Astra Agro Lestari is the plantation unit of diversified conglomerate Astra International.

    Read more ›

  • Widodo Wants Moratorium on New Palm Oil Concessions in Indonesia

    Widodo Wants Moratorium on New Palm Oil Concessions in Indonesia

    Indonesian President Joko Widodo has ordered the nation's Minister of Environment and Forestry Siti Nurbaya to issue a moratorium on new palm oil concessions in a number of provinces. Although Widodo wants Indonesia - the world's top producer and exporter of crude palm oil (CPO) - to raise CPO output, he believes this increase can be achieved by increasing productivity of existing palm oil plantations, not by adding new plantations. Indonesia is often criticized by environmentalist groups for its forestry policies and poor law enforcement (which led to the severe haze that spread through Southeast Asia last year).

    Read more ›

  • Indonesia's February Crude Palm Oil Exports Better than Expected

    Indonesia's February Crude Palm Oil Exports Better than Expected

    Indonesia's crude palm oil (CPO) exports rose 9 percent month-on-month (m/m) to 2.29 million tons in February 2016 on the back of growing CPO demand in Africa, Bangladesh, India and the European Union. Indonesia's February CPO export volume was better than estimated previously. Analysts had expected a figure below 2 million tons. Combined, Indonesia's palm oil exports reached 4.39 million tons in the first two months of 2016, up 22 percent (y/y) from the 3.59 million tons of CPO that Indonesia exported in the same period one year earlier.

    Read more ›

  • Palm Oil Update: CPO Output Indonesia & Malaysia Down, Price Up

    Palm Oil Update: CPO Output Indonesia & Malaysia Down, Price Up

    Crude palm oil (CPO) production in Indonesia and Malaysia is expected to decline due to the impact of the El Nino weather phenomenon (that brought a prolonged dry season to Southeast Asia). CPO production in Malaysia could fall between 1.5 and 2 million tons this year according to Dorab Mistry, Director at Godrej International. Declining output in the world's two leading palm oil producers and exporters implies that palm oil prices should be able to rise further. At the start of this week palm oil futures traded in Kuala Lumpur (June delivery) rose to 2,779 ringgit (approx. USD $695) per ton, the highest level since March 2014.

    Read more ›

  • Investing in Indonesia's Crude Palm Oil Industry - Introduction

    Investing in Indonesia's Crude Palm Oil Industry - Introduction

    Although the palm oil industry of Indonesia is resented by many for the negative impact it has on mother nature (for example the seasonal forest fires that occur on parts of Sumatra and Kalimantan), it also constitutes a vital industry: across the globe crude palm oil (CPO) is used for the production of a wide variety of products from food, cooking oil to cosmetics or biodiesel. Indonesia is the world's largest producer and exporter of CPO. This column is the first installment in a series, written by Senior Consultant William Yang, that discusses Indonesia's palm oil industry, particularly the different business models, the risks, and how to invest safely in this industry.

    Read more ›

  • Palm Oil Industry Indonesia Update: Progressive Import Tax France

    Palm Oil Industry Indonesia Update: Progressive Import Tax France

    The crude palm oil business received a blow when France announced it plans to impose progressive tax on imports of crude palm oil and its derivatives. French authorities approved a bill on 21 January 2016 that will raise the import tax on palm oil from around 100 euro per ton currently to 300 euro per ton in 2017. This tariff will then be raised to 700 euro per ton in 2019, and to 900 euro per ton in 2020. Through this tax hike France aims to discourage the palm oil industry, hence curtailing global deforestation as well as to protect its citizens from the negative health effects caused by the consumption of palm oil.

    Read more ›