13 October 2021

The increase in the export value of palm oil products throughout August 2021 reached US$4.42 billion, up US$1.6 billion compared to July exports, especially in several major export destination countries, indicating that the global demand for palm oil products continues to increase.

“I am optimistic that the export value of palm oil products will continue to increase. This is because palm oil products are needed,” said President Director of PT Mahkota Group Tbk, Usli Sarsi when confirmed by cellular telephone, Monday (11/10).

Palm oil products, Usli said, are needed in three sectors, namely the energy, food and consumer goods sectors. These three sectors, he continued, are needed to fulfill human needs.

To facilitate activities, humans need tools such as vehicles, machines for lighting and production tools, electronic equipment and so on. In order for these tools to function there needs to be energy. From the results of studies conducted, palm oil products can be processed into energy sources.

In order to survive, Usli said, humans need food. Palm oil products can be processed into food, one of which is cooking oil. From the results of the study, it turns out that palm oil products produce the cheapest cooking oil.

​Similarly, many consumer goods require palm oil products such as soap, cosmetics and others. From the results of the study conducted, there are at least 200 products that can be made from palm oil products.

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Bargain Value

The large demand for palm oil products makes Indonesian palm oil products have a high bargaining value in global trade.

“Just imagine if Indonesia does not export palm oil products such as CPO. How many factories abroad would be disrupted,” Usli said.

In order for palm oil products to meet the needs of the industry, recipient countries are implementing policies by lowering import taxes. India, one of the recipients of palm oil raw materials in the form of CPO from June 30 to September 30, 2021, discounted the original import tax of 15% to 10%. The goal is that industries that need CPO in India can produce.

“I'm sure there will be many countries that reduce CPO import taxes,” he said.

With the increasing demand for palm oil products, Usli added, the selling price also rose. Currently, the government continues to take steps and study the use of palm oil products in the country. The trial of aircraft fuel by mixing palm oil is proof that the government is serious in utilizing palm oil products.

“The more use of palm oil products in the country, the better for Indonesia,” he explained.

Palm oil products in Indonesia need to be protected by utilizing them domestically. So far, Indonesian palm oil products are highly dependent on foreign countries, so prices are easily manipulated.

Source : Analisa