Govt Takes Action to Deal With CPO Price Decrease

Economic Coordinating Minister Darmin Nasution asserted that the government has implemented policies to deal with crude palm oil (CPO) price decrease. As of October 2018, CPO price has decreased 24% from US$636 per tons to US$485 per tons. Darmin’s statement came as he delivered special address at the 14th Indonesian Palm Oil Conference and 2019 Price Outlook in Bali International Convention Center (BICC), Nusa Dua, Bali, Thursday (1/11/2018), as published on a press statement. Darmin said the policies are mainly implemented in both demand side and supply side. Policies in demand side are moratorium on oil palm plantations expansion, resolving occupation over forest lands, implementing one map policy, strengthening Indonesian Sustainable Palm Oil (ISPO), and export levy adjustment. Policies on supply side are optimization of the expanded B20 mandatory program and developing palm oil downstream products. Beside, the government also creates opportunities to improve the livelihoods of smallholders by replanting smallholders oil palm plantations. Those programs needs to be optimized given the fact that smallholders are important elements in sustainable palm oil. ***