Below is a list with tagged columns and company profiles.

Today's Headlines Palm Oil

  • Indonesian Research Firm: 2016 Palm Oil Output Curbed by Drought & Haze

    Indonesian Research Firm: 2016 Palm Oil Output Curbed by Drought & Haze

    Riset Perkebunan Nusantara, a state-owned research firm, expects Indonesia's crude palm oil (CPO) production to drop 4.2 percent (y/y) to 32 million tons in 2016. The firm further adds that in 2015 Indonesia had a total of 11.3 million hectares of palm oil plantation, consisting of plantations owned by the state (750,000 hectares), plantations owned by the private sector (5.97 million hectares) and plantations owned by smallholders (4.58 million hectares). The palm oil sector is one of Indonesia's key foreign exchange earners. Indonesia is the world's largest producer and exporter of palm oil, followed by Malaysia.

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  • Downstream Palm Oil Industry of Indonesia in Development

    Downstream Palm Oil Industry of Indonesia in Development

    Bayu Krisnamurthi, President Director of the Indonesian Oil Palm Estate Fund (BPDP-KS), said total exports of palm oil and its derivatives in the first quarter of 2016 reached 7.42 million tons. It is interesting to note that 87.2 percent of this total figure (or 6.47 million tons) comprises processed palm oil products, while the remainder consists of crude palm oil (CPO), implying that the downstreaming of the palm oil sector is developing smoothly. Krisnamurthi says the imposition of export levies on CPO has managed to encourage the development of downstream industries in the nation's palm oil sector.

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  • Indonesia Investments' Newsletter of 17 April 2016 Released

    Indonesia Investments' Newsletter of 17 April 2016 Released

    On 17 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 hot topics and economic matters such as an update on GDP growth, Bank Indonesia's new benchmark monetary tool, the palm oil sector, the coal price, the trade balance, an excise tax on plastic items, and more.

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  • Indonesia & Malaysia Set Criteria for the Council of Palm Oil Producer Countries

    Indonesia & Malaysia Set Criteria for the Council of Palm Oil Producer Countries

    Nine or ten crude palm oil (CPO) producers want to join the Council of Palm Oil Producer Countries (CPOPC), the intergovernmental palm oil council set up by the world's two largest CPO producers and exporters: Indonesia and Malaysia. These two initiators signed an agreement in November 2015 for the establishment of the CPOPC - headquartered in Jakarta - that aims to control the global CPO supply, stabilize palm oil prices, promote sustainable practices in the palm oil industry, and enhance the welfare of oil palm smallholders; more or less the role that OPEC has in the crude oil industry.

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  • Indonesia Investments' Newsletter of 3 April 2016 Released

    On 3 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 economic matters such as Indonesia´s 11th economic policy package, the latest inflation and manufacturing figures, an update on palm oil export, tenders for geothermal power development, fruit export, the fuel price policy, and much more.

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  • Fitch Ratings Indonesia Cuts Outlook Sinar Mas Group's Palm Oil Firms

    Fitch Ratings Indonesia Cuts Outlook Sinar Mas Group's Palm Oil Firms

    Global ratings agency Fitch Ratings cut its outlook on three Indonesian palm oil companies - Sinar Mas Agro Resources and Technology (SMART), Ivo Mas Tungkal, and Sawit Mas Sejahtera - from stable to negative. The rating of the three companies was cut to AA (idn) by Fitch Ratings Indonesia. However, an AA (idn) rating still denotes a low probability of default for the company and its bonds. The rating of bonds of SMAR, due in 2017 and 2019, were also cut to AA (idn). The three palm oil companies are owned by Golden Agri Resources, part of the Sinar Mas Group that is controlled by Eka Tjipta Widjaja, one of the richest Indonesians.

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  • France Step Closer to Higher Palm Oil Import Tax, Indonesia Objects

    France Step Closer to Higher Palm Oil Import Tax, Indonesia Objects

    The National Assembly of France agreed to impose an additional tax on imports of crude palm oil (CPO) and its derivatives used for the production of food products. An additional tax of 90 euro per ton (on top of the existing 104 euro per ton import tariff) is expected to be implemented in 2017. This tax increase is part of France's wider biodiversity bill that aims to reduce deforestation and protects French citizens from the negative health effects from consuming palm oil. Indonesia and Malaysia, the world's largest CPO producers have objected strongly to this higher tax.

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  • Indonesia Asks France to Scrap Additional Tax on Palm Oil Imports

    Indonesia Asks France to Scrap Additional Tax on Palm Oil Imports

    Efforts made by the Indonesian government to convince France not to impose a progressive tax on imports of crude palm oil (CPO) and its derivatives have had some success. According to the latest stories, French authorities agree to cut the proposed additional import tax from 300 euro to 90 euro per ton. Earlier, on 21 January 2016, France approved a bill that gives birth to a progressive import tax on CPO and derivatives starting at an additional 300 euro per ton in 2017 and then increasing to 700 euro per ton in 2019, and to 900 euro per ton in 2020. Currently, France's import tax on CPO is just above 100 euro per ton.

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  • Indonesia Investments' Newsletter of 13 March 2016 Released

    Indonesia Investments' Newsletter of 13 March 2016 Released

    On 13 March 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 economic matters such as the performance of Indonesian blue chip stocks, the impact of negative interest rates in the Eurozone, logistics costs, coal mining, crude palm oil, Japanese investment, and more.

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  • Crude Palm Oil Industry Indonesia: CPO Production Down, Price Up?

    Crude Palm Oil Industry Indonesia: CPO Production Down, Price Up?

    Fadhil Hasan, Executive Director of the Indonesian Palm Oil Association (Gapki), expects Indonesia's crude palm oil (CPO) production to decline to around 32.1 million tons in 2016 from 32.5 million tons in the preceding year. This decline, which would be the first (full calendar year) drop in Indonesia's palm oil output since 1998, is caused by the El Nino weather phenomenon. El Nino causes dry weather in Southeast Asia hence curtailing palm oil fruit yields. CPO production in Malaysia, the world's second-largest CPO producer and exporter (after Indonesia), has also been affected.

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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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