Price of CPO in S. Sumatra up

Selasa, 24 April 2012 | 09:27

The price of crude palm oil (CPO) in South Sumatra on Monday reached Rp8,043 per kg, while two weeks earlier it stood at Rp7,937 per kg.Head of South Sumatra plantation agency`s production processing and marketing Ir Minarsih said in Palembang that the price of CPO is set in meetings twice a month between the relevant government institutions and oil palm plantation companies in the province, with reference to overseas markets as part of South Sumatra`s CPO is exported.

He added that some of South Sumatra`s CPO is also processed into bulk frying oil raw material including those already packed and branded.

Bulk frying oil marketed in traditional markets in Palembang is normally sold at Rp10,500 to Rp10,600 a kg.

It is also sold in packed and branded form at higher prices.

Packed frying oil is normally sold at supermarkets and minimarkets at Rp11,500 to Rp14 thousand a kg.

Minarsih said further that some of the oil palm plantation companies which are regularly attending the meetings include PT Hindoli, Minanga Ogan, Tania Selatan, London Sumatera, and PT Aek Tarum.

The tens of oil palm plantation companies in the province reached a total of 600 thousand hectares in Muaraenim, Lahat, Pagaralam, Banyuasin, Musibanyuasin, Ogan Komering Ilir, Ogan Komering Ulu, and Musirawas regency.

With regard to CPO exports, the South Sumatra statistic agency said that the non-oil/gas export commodities of the province from January to December 2011 produced a total of US$4.556 billion, including US$53.737 million contributed by CPO, while the biggest contribution reached US$3.868 billion, and the second biggest came from coal with a contribution of US$120.195 million.