Downstream oil palm industry players are optimistic about their ability to survive amid a pandemic

Report by Tribunnews.com reporter Sanusi

medialnews, JAKARTA – Downstream palm oil industry players remain optimistic about the onslaught of Covid-19 impacting the economy.

In the biodiesel sector, the mandatory B30 supports the domestic consumption of palm oil.

For oleochemicals, which are raw materials for personal hygiene products, such as disinfectants and soaps. Meanwhile, cooking oil needs remain stable as the tourism and catering sectors have not fully recovered.

“APROBI is fully committed to supporting and implementing the mandatory biodiesel program. The B30 program is expected to encourage the achievement of Indonesia’s energy mix target and increase national energy independence, “Irma Rachmania, head of marketing and promotion at the Indonesian Association of Biofuels Producers, said on Sunday ( APROBI) during the distribution of aid to Wisma Tuna Ganda. (9/5) / 2021).

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He said that currently Indonesia is a leading country which has been able to implement B30, which is renewable and environmentally friendly energy. The trend of consumption of biodiesel from year to year continues to increase.

The social assistance distribution activity is a collaboration between the Forum of Agricultural Journalists (Forwatan) with three downstream oil palm associations, namely the Indonesian Association of Biofuel Producers (APROBI), the Indonesian Association of the vegetable oil industry (GIMNI) and the Indonesian Association of Oleochemical Producers (APOLIN).
Aid is being given to orphans, the elderly and the disabled as a form of concern amid the pandemic and before Eid al-Fitr.

The distribution was given to 4 foundations including Wisma Tuna Ganda (Pekayon), Cahaya Hati Gemilang Foundation (Meruyung, Depok), Charity Fisabilillah Foundation (Pondok Ranggon), Tresna Werdha Budi Mulia 3 Social Institution (Cipayung). The assistance provided took the form of 250 basic cash food packages to the foundation.

In the cooking oil industry, producers remain optimistic about domestic consumption. Bernard Riedo, president of the Indonesian Vegetable Oil Industry Association (GIMNI), said players in the frying oil industry have followed the government’s direction to keep the products available in the market.

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People will have no trouble finding cooking oil even if the price of palm oil is high in the world market.

“Public consumption during Ramadan remains stable. This is because the government is tightening micro-restrictions to prevent the transmission of Covid-19. Industry players support this public health policy. From a logistical point of view, the distribution of cooking oil will continue without significant obstacles, ”said Bernard.

On another occasion, Rapolo Hutabarat, president of APOLIN, explained that the general president of APOLIN, Rapolo Hutabarat, explained that the demand for oleochemicals in the country will increase between 165,000 and 168,000 tonnes every month this year. Domestic growth averages 10 to 12 percent, so in a year it can reach 1.98 to 2 million tons.

For oleochemicals, the pandemic has not disrupted the volume and value of exports over the past year. In 2019, the export volume was 3.18 million tons worth US $ 2.03 billion. However, in 2020, according to Rapolo, the impact of the pandemic will increase the need for oleochemicals from the pharmaceutical and healthcare industries. Exports could reach 3.87 million tonnes for a value of US $ 2.57 billion.