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

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

    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

    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

    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?

    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?

    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

    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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  • Indonesian Palm Oil Companies in Focus: Astra Agro Lestari

    Indonesian Palm Oil Companies in Focus: Astra Agro Lestari

    Indonesia's largest supplier of crude palm oil (CPO), Astra Agro Lestari, is expected to see improving corporate earnings in the years ahead on the back of the rising CPO price and expectation of the company's climbing CPO production volume. The year 2016 was a good year for Astra Agro Lestari as it reported a 224.2 percent year-on-year (y/y) jump in net profit and a 7.6 percent (y/y) increase in sales, led by sales of CPO and derivative products. This was a great recovery from the preceding year. CPO and derivative products account for more than 86 percent of the company's total sales.

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  • Indonesian Plantation Firms in Focus: Tunas Baru Lampung

    Indonesian Plantation Firms in Focus: Tunas Baru Lampung

    The completion of its factory and being granted an additional sugar import quota is expected to boost corporate earnings of Tunas Baru Lampung, one of Indonesia’s leading producers of vegetable cooking oil (covering palm and coconut cooking oil). Furthermore, the company will feel the positive impact of rising crude palm oil (CPO) prices. Tunas Baru Lampung is part of the Sungai Budi Group, an Indonesia-based manufacturer and distributor of agricultural consumer products.

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