Indonesia: Crude palm oil (CPO) capacity will only lasts for 2 months
RBD Palm Oil
Indonesia
Published May 12, 2022
Tridge summary
The Indonesian Palm Oil Association (Gapki) stated that palm oil producers could survive two months to face the ban on exports of crude palm oil (CPO) and its derivative products. However, the durability of the industry is highly dependent on the capacity of the storage tanks on the plantation. Secretary-General of Gapki, Eddy Martono, said that the capacity of the tank from processing fresh fruit bunches (FFB) into CPO in plantations reaches a maximum of 5 million tons. Meanwhile, the level of CPO production reaches 3 – 3.5 million per month. Thus, the storage tank will be full if CPO production is not immediately distributed both domestically and for export. "CPO producers are able to survive for up to two months with the ban on CPO exports, with a note that the current condition of the tanks is mostly empty," said Eddy to Katadata.co.id, Monday (9/5). Eddy said, CPO production also has the potential to increase because the palm FFB harvest takes place from March to June 2022. "The question is, are the factories ready to accommodate all production and the tanks can still accommodate it?" said Eddy.
Original content
The Indonesian Palm Oil Association (Gapki) stated that palm oil producers could survive two months to face the ban on exports of crude palm oil (CPO) and its derivative products. However, the durability of the industry is highly dependent on the capacity of the storage tanks in the plantation. Secretary General of Gapki, Eddy Martono, said that the capacity of the tank from processing fresh fruit bunches (FFB) into CPO in plantations reaches a maximum of 5 million tons. Meanwhile, the level of CPO production reaches 3 – 3.5 million per month. Thus, the storage tank will be full if CPO production is not immediately distributed both domestically and for export. "CPO producers are able to survive for up to two months with the ban on CPO exports, with a note that the current condition of the tanks is mostly empty," said Eddy to Katadata.co.id, Monday (9/5). Eddy said, CPO production also has the potential to increase because the palm FFB harvest takes place from March to June 2022. ...
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes.
To learn more about our cookies, please read our Privacy Policy.