15 October 2019

Medan, (Analisa). In the midst of many stocks experiencing a decline, the shares of palm oil companies have increased. “Yes, it's true. Our shares have increased,” said President Director of Mahkota Group (MGRO), Usli Sarsi, recently.

The increase in the value of shares of oil palm companies is driven by government policies that will implement 30% Biodiesel (B30) next year. The implementation of B30 will increase the use of crude palm oil (CPO) in the country. Moreover, the government has been successful in implementing B20 this year.

In addition to implementing B30 next year, the government's move to postpone the palm oil export tax until next year is very helpful in increasing the company's profit income.

“If the export tax is imposed early next year, it will not have a big impact, because B30 has already been implemented so that there will be more domestic absorption of CPO,” he explained.

With more domestic absorption, it is expected that CPO prices will be stronger and not influenced by importing countries. With the implementation of B30, of the total CPO production in Indonesia of 47 million tons, only 65% is for export, while the rest is for domestic needs.

Usli is not too worried that land fires will have an impact on the decline in CPO exports. According to him, land fires are not solely due to the need for palm oil. If it is said that next year oil palm production will decline, it is not because it is caused by land fires, but because of the long drought and farmers do not apply enough fertilizer.

“This condition was the same in 2016 when there was a long drought and land fires. In the following year oil palm production declined,” he said.

Optimistic

Indonesia as the world's CPO producer can be an economic powerhouse. The world needs sustainable energy to power vehicles, factories, electricity and so on. So far, the use of fossil-based energy is not sustainable and contributes to environmental pollution. While energy from the sun, water, air has limitations. “We are very optimistic that CPO is considered sustainable and environmentally friendly energy,” said Usli.

The great potential of CPO as an energy source, Mahkota Group took a step by acquiring an oil palm company located in South Sumatra with a value of IDR 120 billion. The addition of oil palm is expected to further strengthen CPO production not only for export needs, but also domestic needs. (rin)

Source : https://harian.analisadaily.com/ekonomi/news/saham-perusahaan-kelapa-sawit-menguat/808631/2019/10/15