Indonesia may become a CPO Biggest market

Senin, 03 Desember 2012 | 08:55

Indonesia which has been the world biggest producer of crude palm oil, is also expected to become the largest consumer of the commodity next year, shifting the dominance of India.Deputy Trade Minister Bayu Krisnamurthi said domestic consumption of palm oil in the next year rose 13% to 8.5 million tons from 7.5 million tons at present.

The amount exceeded estimation of US which peg India’s request at 7.95 million requests and 7.87 million tons for Indonesia.

US Department of Agriculture said the use of palm oil jumped 51% in the last 4 years. The consumption of wheat has increased by 21% and sugar also increased by 15%.

"We see a very strong growth in demand from Indonesia," said Erin Fitzpatrick, analyst
of Rabobank International quoted by Bloomberg, on Thursday (11/20).

In September, McKinsey & Co. estimates that Indonesia's economic growth will surpass Germany and the UK in 2030 and will go to seven of the world's largest economy.

Sahat Sinaga, Executive Director of the Association of Vegetable Oil Industry of Indonesia, said the CPO consumption will increase because Indonesia increased biofuel use.

Director of PT Gozco Tbk Tjandra Gozali said the projected high consumption of crude palm oil (CPO) in Indonesia in 2013 opens a great opportunity for the company's sales performance.

According to him, the prediction is a medicine downturn during the global economic downturn condition.

Coupled with his existing CPO issues including commodities that are considered environmentally friendly and justified American and European markets did not consume it. (t03/msw)

by Sekti Dewi Mayestika, Ashari Purwo, Lavinda, Hadijah Alaydrus