Below is a list with tagged columns and company profiles.

Today's Headlines Palm Oil

  • Crude Palm Oil Industry Indonesia: Prices May Extend Rally into 2016

    Crude Palm Oil Industry Indonesia: Prices May Extend Rally into 2016

    The El Nino-inflicted dry weather in Indonesia and Malaysia, possibly the worst in nearly two decades, is expected to curtail crude palm oil (CPO) output in both countries, implying that palm oil prices can extend their rally into next year. Moreover, Indonesia will consume more CPO as the government will raise the mandatory amount of palm oil blended with diesel from 15 to 20 percent (part of its B20 biofuel program) in early 2016. Since August - when prices were at a six-year low - palm oil futures have surged 26 percent.

    Read more ›

  • Indonesia Carries on with Biodiesel Program despite Limited Success

    Indonesia Carries on with Biodiesel Program despite Limited Success

    Although Indonesia's B15 biodiesel program, which refers to the government's program to blend 85 percent of diesel with a mandatory 15 percent of fatty acid methyl ester (derived from palm oil), is no success yet, the government is expected to introduce the B20 biodiesel program (raising the mandatory content of fatty methyl ester in biofuel to 20 percent) in early 2016. To support the B20 program, eleven companies are ready to supply biodiesel to state-owned energy company Pertamina and publicly-listed petroleum and basic chemicals distributor AKR Corporindo between November 2015 and April 2016.

    Read more ›

  • Weak Earnings Astra International Omen Indonesia's Q3 GDP Growth?

    Weak Earnings Astra International Omen for Indonesia's Q3 GDP Growth?

    Third-quarter corporate earnings of Astra International, one of Indonesia's largest diversified conglomerates, cause concern that economic growth of Indonesia has continued to slow in Q3-2015. Corporate earnings of Astra International are a solid indicator of the country's total growth as the company is engaged in basically all key sectors of the economy. Astra reported a 17.2 percent decline (year-on-year) in net profit to IDR 12 trillion (approx. USD $888 million). Sales fell 8 percent (y/y) to IDR 138 trillion.

    Read more ›

  • Crude Palm Oil Update: El Nino Impacts on Indonesia's 2016 CPO Production

    Crude Palm Oil Update: El Nino Impacts on Indonesia's 2016 CPO Production

    Production of crude palm oil (CPO) in Indonesia is estimated to rise to 33 million tons in 2016, roughly 500,000 tons lower than the initial forecast as the El Nino weather phenomenon is expected to impact on agricultural output by causing an extended dry season in Southeast Asia (that will perhaps last beyond December). This year, Indonesia, the global leading CPO producer and exporter, is expected to produce 31.5 million tons. Reduced output in Indonesia may support palm oil prices.

    Read more ›

  • Indonesia to Stop Complying with European Union's Palm Oil Standards

    Indonesia to Stop Complying with European Union's Palm Oil Standards

    The Indonesian government will (temporarily) stop using sustainability standards designed by the European Union regarding crude palm oil (CPO). Indonesian Minister of Maritime Affairs Rizal Ramli said the current strict standards of the European Union hurt the domestic palm oil industry, especially smallholders. Moreover, Indonesia and Malaysia, the world's two largest CPO producers and exporters, are to set up a new intergovernmental palm oil council that will design new rules and standards regarding sustainable palm oil production.

    Read more ›

  • Haze Update: Malaysia Closes Schools, Urges Indonesia to Act

    Haze Update: Malaysia Closes Schools, Urges Indonesia to Act

    Again schools were ordered to shut (for at least two days) in Malaysia in order to protect children from inhaling smog as the air quality remains at very unhealthy levels (nearly hazardous in some regions). The air pollutant index still shows readings of between 201 to 300 in six districts around Malaysia's capital city of Kuala Lumpur. The haze, which - reportedly - may become the worst haze ever, is caused by companies' and people's illegal slash-and-burn practices to clear land for planting on parts of the Indonesian islands of Sumatra and Kalimantan. The situation is exacerbated by the (El Nino-related) prolonged dry season.

    Read more ›

  • El Nino Causing Lower Coffee and Crude Palm Oil Production in Indonesia

    El Nino Causing Lower Coffee and Crude Palm Oil Production in Indonesia

    Apart from the Indonesian rupiah which has hit its weakest level since the Asian Financial Crisis 17 years ago, the ongoing El Nino (the weather phenomenon that brings drought to Southeast Asia) may be the strongest since 1997-1998. This means that output of agricultural commodities is to decline (but which should have a positive impact on prices). Coffee production in Indonesia is estimated to fall by seven percent to 581,000 metric tons in 2016 from an estimated 625,000 tons this year.

    Read more ›

  • Palm Oil News Update: Indonesia's CPO Export Tax Remains at 0%

    Palm Oil News Update: Indonesia's CPO Export Tax Remains at 0%

    Indonesia's export tax on crude palm oil (CPO) shipments will remain at zero percent in October 2015 as the government's reference CPO price fell 13 percent (month-on-month) to USD $529.51 per metric ton for October. When this reference CPO price is below the USD $750 per ton threshold, then the government scraps the export tax in an attempt to make shipments more attractive. However, exporters are still subject to the recently introduced palm oil exports levy. When the export tax is cut to zero percent, exporters are required to pay a USD $50 per ton levy for CPO and USD $30 for processed palm oil products shipments (part of these funds are channeled to Indonesia's biodiesel subsidy program).

    Read more ›

  • Palm Oil Indonesia: Output & Reserves up, Export down on Higher Tax India

    Palm Oil Indonesia: Output & Reserves up, Export down on Higher Tax India

    There is limited to no room for palm oil prices to rise in the remainder of 2015 as crude palm oil (CPO) reserves have climbed while exports are down. CPO production in Indonesia, the world’s largest producer and exporter of this commodity, may have hit the one-year high of 3.20 million tons in August (from 2.86 million tons one month earlier) as trees reached their peak production period. Meanwhile, India introduced higher taxes for overseas purchases of palm oil in order to protect domestic growers.

    Read more ›

  • Indonesia’s Forest Fires & Haze Plague Singapore and Malaysia

    Indonesia’s Forest Fires & Haze Plague Singapore and Malaysia

    The haze, caused by dozens of forest fires on Sumatra and Kalimantan, and which have spread to Singapore and Malaysia, is expected to plague the three countries in the next couple of days. Indonesian authorities, which are currently investigating forest fires in Central Kalimantan, South Sumatra, Riau, West Kalimantan and Jambi, mentioned that there are 107 people who have been named suspects, involved in 68 acts of slash-and-burn practices (according to Indonesian media).

    Read more ›

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.

    Read more ›

  • 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.

    Read more ›

  • 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.

    Read more ›

  • 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).

    Read more ›

  • 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.

    Read more ›

  • 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.

    Read more ›

  • 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.

    Read more ›

  • 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.

    Read more ›