ABUNDANT CPO SUPPLY, MAHKOTA GROUP (MGRO) ACCELERATES THE CONSTRUCTION OF COOKING OIL FACTORIES
28 November 2018
KONTAN.CO.ID - JAKARTA. The government plans to waive export levies on crude palm oil (CPO) and its derivatives. This is welcomed by palm oil-producing issuers.
President Director of PT Mahkota Group Tbk (MGRO) Usli Sarsi said the government's move was right. Because it will help stabilize CPO prices. “It will also be able to increase the price of fresh fruit bunches (FFB) at the farm level,” Usli said on Tuesday (27/11).
Usli said, CPO prices have continued to decline in recent weeks. Many things affect the decline in CPO prices, namely the trade war, the decline in world crude oil prices and the over supply of CPO because in the second semester of 2018 there was a surge in yields.
Well, to anticipate the oversupply of CPO, “We will maximize the acceleration of refinery development so that this large enough CPO stock (facing the peak season next year) can be processed into cooking oil,” he explained.
In 2019 MGRO will still focus on building a refinery plant or cooking oil factory as the company's downstream industry.
According to Kontan.co.id's records for the construction of the factory, MGRO poured funds of IDR 330 billion. “Capex absorption this year is around 25% which is used for the construction of a cooking oil factory (refinery) in Duri, Riau,” he concluded.
Reporter : Willem Kurniawan
Editor : Herlina Kartika