15 November 2021

The high demand for palm oil both domestically and abroad has a positive impact on the revenue of palm oil processing companies.

This year saw an increase in demand for palm oil from both domestic and foreign sources. This is due to the La Nina weather change that caused many sunflower and soybean producing countries to experience crop failure. In addition, the increase in demand for palm oil is also driven by the energy crisis in several countries so that they switch to biodiesel energy.

“Until September 2021, MGRO's revenue was IDR 4.769 trillion, up 88% from the same period the previous year of IDR 2.536 trillion,” said President Director of PT Mahkota Group Tbk, Usli Sarsi at a Public Expose conducted online, Wednesday (10/11).

The increase in revenue, said Usli, was supported by refineries that were fully operational. Likewise, the net profit obtained until September 2021 was IDR 57 billion, up 267% compared to the same period in 2020, which was minus IDR 34 billion. According to him, demand for palm oil will continue until the end of the year. For this reason, he is optimistic that this year's production target of 522 thousand tons can be achieved, as well as the revenue target of IDR 6 trillion and net profit of IDR 120 billion.

In strengthening downstream by increasing the capacity of refinery line-1 and adding line-2, making hard stearin, margarine, oil packing and shortening products. Adding stockpile tanks, increasing the capacity of KCP and solvent extraction plant, investing in biogas business, adding turbines, boilers, bunch press, processing fertilizers and oleochemical products.

According to him, the demand for palm oil both at home and abroad continues to increase for industrial needs. Meanwhile, the demand for other vegetable oils such as sunflower oil, soybean oil and so on will not be able to meet the needs of the industry.

“This year, many countries that produce sunflowers, soybeans and so on have experienced crop failures due to La Nina changes. Meanwhile, palm oil is more resistant to weather changes,” he explained.

He said that the increasing demand for palm oil certainly benefits Indonesia. Indonesia is currently the largest palm oil producer in the world. When viewed from the average production of 4 tons per hectare, it can still be increased. Likewise, the availability of land owned,

Indonesia can still expand oil palm land by utilizing swamp land that has not been fully utilized without clearing forest land.

Source : https://analisadaily.com/e-paper/2021-11-13/files/mobile/index.html#10