Crude Palm Oil

Potential industrial sectors, especially the key determinants of the Indonesian economy, continue to move forward as an effort to boost the national economy. One of the key economies of Indonesia is the industrial sector of Crude Palm Oil (CPO) and its derivative products.

With an area of oil palm plantations of more than 10 million hectares, making Indonesia as the largest producer and supplier of CPO commodities and other products produced through the processing of these raw materials. The export performance of this product has also continued to increase during the last five years.

However, even though Indonesia is the world’s largest CPO raw material owner, it does not automatically make this nation as the determinant of CPO prices in global markets. This condition eventually makes CPO products and their derivatives from Indonesia became less competitive in the international market. Responding to this condition, the Indonesian government implemented a number of strategies to encourage the progress of this national industry.

One of the real implementations that has been realized is by developing Indonesia Crude Palm Oil Index (ICPOI), which was launched in April 2018. The price reference was developed by PT Indeks Kommoditi Indonesia (Indonesian Index Commodity). The future vision of relevant stakeholders, both government and business actors, is to bring Indonesia as the world’s CPO trading centre.

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