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Section 1: Oils & Fats Supply, Demand and Outlook:
Indonesia's Palm Oil 2021 - Impact of Export Tax and Levy Revision
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By: Mr. Togar Sitanggang
Mr Togar Sitanggang is the Vice Chairman of Indonesian Palm Oil Association/ GAPKI Since April 2018, Previously He served as Secretary General from April 2015 to April 2018.
Currently, Mr Sitanggang works for PT Musim Mas as General Manager base in Jakarta. He has been in palm oil industries for almost 30 years with national and multinational companies including PT SMART Tbk, Cargill, Bunge, ED & F Man, Darmex in many positions ranging from research, logistics, trading and now corporate affairs.
Mr Sitanggang is also active in palm oil related associations in Indonesia such as APROBI (Association of Biofuels Producers Indonesia), APOLIN (Association of Oleochemicals Manufacturer) and DMSI (Dewan Minyak Sawit Indonesia – Indonesia Palm Oil Board).
Mr. Togar Sitanggang, was born in North Sumatera in 1966, graduated from University of Southern California, Los Angeles, USA, in Computer Science degree and obtained his Master Degree from North Sumatra University in Medan.
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We are still experiencing COVID-19 pandemic all over the world but demand for vegetable oil, especially palm oil from Indonesia is slowly returning. People are finding ways to "be friend" with the situation.
In the midst of returning demand, Indonesia palm oil industries realized that levy collected has resulted with high enough cash balance for the CPO Fund due to narrowing POGO spread during first semester this year. This situation created talks and discussions among stakeholders and finally requested Government to lower the levy tariff. The result was lowered levy which started July 2nd this year.
Since the new tariff implemented, POGO spread has slowly widened again with a strong increase of vegetable oil complex including palm oil. Depending where the crude oil price will go, the spread is possibly still widen for the rest of 2021 because vegetable oil complex is yet to see the bear.
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Section 1: Oils & Fats Supply, Demand and Outlook |
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Archives |
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MITIGATING THE NEXT WAVE OF MARKET UNCERTAINTIES Nov 14, '22 ~ Nov 18, '22 |
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ASSESSING 2022: MANAGING OPPORTUNITIES AND RISKS Mar 28, '22 ~ Apr 01, '22 |
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Section 2: Opportunities for Palm Oil in Asian Market Oct 18, '21 ~ Oct 24, '21 |
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Section 1: Oils & Fats Supply, Demand and Outlook Oct 18, '21 ~ Oct 24, '21 |
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Section 1: Price Direction Apr 05, '21 ~ Apr 11, '21 |
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Section 2 : Special Focus on the US Apr 05, '21 ~ Apr 11, '21 |
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POINTERS ON THE PRICE TRENDS Jun 22, '20 ~ Jun 28, '20 |
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Section 1 : CPO Price Trend Feb 24, '20 ~ Mar 01, '20 |
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Section 2: Global Palm Oil Market Opportunities Feb 24, '20 ~ Mar 01, '20 |
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Section 2: Special Focus Aug 19, '19 ~ Aug 25, '19 |
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Section 1 : CPO Price Trend Aug 19, '19 ~ Aug 25, '19 |
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Special Focus - India Feb 25, '19 ~ Feb 24, '19 |
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Section 1: CPO Price Trend Feb 18, '19 ~ Feb 24, '19 |
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Section 2: Global Palm Oil Market Focus Aug 06, '18 ~ Aug 12, '18 |
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Section 1: CPO Price Trend Aug 06, '18 ~ Aug 12, '18 |
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Section 2 : Global Palm Oil Market Focus Jan 29, '18 ~ Feb 04, '18 |
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Section 1: CPO Price Trend Jan 29, '18 ~ Feb 04, '18 |
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Section 2: Regional Focus : CIS Countries Aug 21, '17 ~ Aug 27, '17 |
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Section 1: Palm Oil Price Fundamentals Aug 21, '17 ~ Aug 27, '17 |
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Section 2: Market Challenges and Opportunities Feb 20, '17 ~ Feb 26, '17 |
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Section 1: Price Directions Feb 20, '17 ~ Feb 26, '17 |
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Section 1 : Palm Oil Price Fundamentals Aug 22, '16 ~ Aug 28, '16 |
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Section 2 : Trade Issues and Market Prospects Aug 22, '16 ~ Aug 28, '16 |
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2016 Market Direction - Twists and Turns of Palm Oil Prices Feb 22, '16 ~ Feb 29, '16 |
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Second Half 2015 - Anticipating Market Price Direction Aug 17, '15 ~ Aug 23, '15 |
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Special Focus: Indian Sub-Continent Aug 17, '15 ~ Aug 23, '15 |
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Opportunities, Challenges And Trend In 2015 CPO Price Feb 23, '15 ~ Mar 01, '15 |
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2nd Half 2014: Market Challenges, Predictions And Directions Aug 25, '14 ~ Aug 31, '14 |
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Anticipating 2014 Palm Oil Price Direction Feb 17, '14 ~ Feb 24, '14 |
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Prospects For Second Half Of 2013 - Managing Price Fluctuations Jul 22, '13 ~ Jul 29, '13 |
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Mapping The Palm Oil Price - 2013 Market Perspective Feb 18, '13 ~ Feb 27, '13 |
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Palm Oil : Challenges, Opportunities And Latest Market Directions Aug 06, '12 ~ Aug 17, '12 |
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2012 Price Direction, Issues & Challenges Feb 13, '12 ~ Feb 20, '12 |
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Challenges, Opportunities And Latest Price Trend Aug 08, '11 ~ Aug 16, '11 |
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Challenges, Opportunities And Price Direction Feb 07, '11 ~ Feb 17, '11 |
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2010 Year End Prospects - What Lies Ahead? Aug 02, '10 ~ Aug 08, '10 |
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On labor issue, it is not on Indonesia govt decision at this point. If Malaysia open up her border for workers, I am sure Indonesian workers will return to Malaysia,
2 years ago
Indonesia govt does not have any intention to limit export at this time. Palm Oil has been supporting our trade balance for may years and especially in recent months.
2 years ago
Hi Jacquelyn, 1. Biodiesel export was not the only one increased during July-Aug.. most of the palm based commodities increased significantly and this due to delay shipment from June-July anticipating lower levy. Sept onward should be back to "normal". 2. As far as I know, all, or at least most of, biodiesel producers are included in the mandate. If one or two has not included, they would not be able to sell their biodiesel because buyers (Pertamina, Shell, etc) are buying biodiesel at Gasoil price. Hope this answer your questions.
2 years ago
Hi HCLeow, Apologize not to answer this sooner. I have written the answers but did not hit "Post".. :) There is some control of cooking oil price in Indonesia with certain "price ceiling" but not really effective at this moment. The current production situation due to both dry season and lack of fertilizer in 2019. However, the current situation on fertilizer would effect production next years. Smallholders, even high price on fruit bunches, fertilizer is not available. I hope above answer your questions. Thank you
2 years ago
Sorry, I don't have answer for your question.
2 years ago
Hi Ivy.. the President 'plan' is actually is on going progress. our export portion of CPO has been reduced slowly since 2012 and now stand at around 12-15%. in 2021 CPO portion was 60-70%. of course this move is welcomed by refiners which now stand about 55-60mio mt per annum.
2 years ago
Hi Ivy.. my estimate the CPO fund size is at around 30 trillion rupiah which is very sufficient until end of the year and maybe until Q1 or even Q2 2022.
2 years ago
I can not speak on behalf my friends in Malaysia. However, the scheme that we have in Indonesia needs to have strong commitments from all stakeholders both in Government and in industry.
2 years ago
its a good question and this question has been lingering on my head since the system introduced. from past 6 years experiences with the fund management body and up-n-down on levy structures, it seems Government is yet to think about the cut off point at all. Govt is even putting higher blending rate for years to come. should this question be considered? in my opinion: YES.. but again.. I dont see it will be discussed in short term from now.
2 years ago