The government ensures that the program of blending Biofuels into Diesel Fuel Oil will push up the increase in the price of crude palm oil (CPO). For now Indonesia has increased the mixing percentage from 30% (B30) to 35% (B35).
Deputy for Coordinating Food and Agribusiness at the Coordinating Ministry for Economic Affairs, Musdhalifah Machmud, said that previously many people underestimated that this program would drive down the price of CPO. But according to him, the reality is that CPO prices are starting to recover from before.
"There are many Biodiesel or B35 who want Indonesia's (CPO) prices to drop, saying 'I think Indonesia's price is falling'. We remain united in our efforts to maintain biodiesel prices for palm oil, stability can be realized, this can be shown by the presence of B35. B35 is a tool. , the policy maintains the stability of palm oil prices," he said in a discussion entitled Indonesia's Strategy to Become a Barometer of World Palm Prices, at the Aryaduta Hotel, Gambir, Central Jakarta, Thursday (2/3/2023).
Musdalifah said that the current CPO price has reached US$ 889/Metric Ton (MT). According to him, this figure has increased from the previous US$ 779/MT, where the increase was claimed to be due to the presence of 35% biodiesel.
"That's now US$ 889 after we implemented B35," he said.
Although according to him besides the existence of biodiesel there are other factors that affect the price of CPO. Other factors are harvest season, weather and others.
"The point is that we are sure that biodiesel will keep CPO prices from falling too low, prices are still at a reasonable level," he concluded.
Previously, oil palm farmers also responded positively to the B35 program. The general chairman of the Indonesian Palm Oil Farmers Association (Apkasindo) Gulat ME Manurung also said that the B35 program had saved the farmers' economy because the price of palm oil had risen progressively since early February.
In fact, continued Gulat, since November 2022 the export quantity of CPO (crude palm oil) and its derivatives has declined. This can be seen from the CPO price which has been decreasing since November 2022 to January 2023.
"Indicators of declining exports can also be seen from the reduced supply of DMO (domestic market obligation) in the Simirah application," said Gulat in a written statement, Tuesday (14/2/2023).
Furthermore, Wrestling revealed that DMO and exports are related. This is because through exports a DMO will emerge with a ratio of 1:6, that is, exports are six times the obligation to supply domestically.
For information, the government has officially implemented B35 biodiesel starting February 1, 2023. ESDM Minister Arifin Tasrif targets the realization of biodiesel to increase from 2022.
"In 2022, our biodiesel realization will reach 10.45 million KL. We target that in 2023 it will reach 13 million KL," he said in a press conference at the Ministry of Energy and Mineral Resources, Jakarta, Monday (30/1/2023).
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