B20 Program Brings Good Things to CPO Producers
Crude palm oil producers believe that good things will happen in the future to them as government implement expanded B20 program.
Crude palm oil producers believe that good things will happen in the future to them as government implement expanded B20 program. This program will automatically increase biodiesel production that means more absorption of Crude Palm Oil (CPO).
This optimistic projection came from Indonesian Palm Oil Board (DMSI). Initially, DMSI projected biodiesel domestic consumption will be conservative, around 300 thousand tons by the second semester of this year. However, the government enacted policy to expand the use of B20 so that biodiesel consumption will increase.
DMSI projected CPO consumption could grow 800 thousand tons in the second semester of 2018 compared to the first semester of the year. “If biodiesel more aggressive, the consumption will reach that level,” Vice Chairman of DMSI Sahat Sinaga said in Jakarta, (30/8/2018) as quoted by Katadata.
According to DMSI, domestic CPO consumption will reach 7 million tons this year. The expanded B20 program will also absorb more palm oil for biodiesel which could result in an increase in CPO prices. ***
