Expanded B20 Mandatory Program Absorbs 919 Thousand Tons CPO
THE expanded B20 mandatory program has made a positive impact to Crude Palm Oil (CPO) absorption in domestic market.
THE expanded B20 mandatory program has made a positive impact to Crude Palm Oil (CPO) absorption in domestic market. Since the program launched on September 2018, CPO absorption has reached 919 thousand tons by October 2018, or only in a month. The number was resulted from B20 absorption in both Public Service Obligation (PSO) and non-PSO sectors. According to Executive Director of the Indonesian Palm Oil Association (Gapki) Mukti Sardjono, before the program launched, CPO absorption for biodiesel reached around 215 thousand tons to 290 thousand tons from January to August 2018. However, after the expanded B20 mandatory program launched, use of CPO for biodiesel has doubled to 400 thousand tons on September and 519 thousand tons in October 2018. `The positive performance on CPO absorption for biodiesel has affected CPO stocks in the country,” Mukti said on his written statement, Friday (30/11/2018), as reported by Kontan. Mukti added, the higher the absorption, the better for the country because it will reduce global support and the price will recover. “Global CPO price was low due to high palm oil oil supply in Indonesia and Malaysia.” ***