Indonesia Intensively Approach China
Aprobi will look for new markets that can accommodate large-scale volumes. Countries with emission reduction commitments are also targeted as export destinations. In the country, potential customers are also targeted is PT Kereta Api Indonesia. The company is still testing. In the event of an agreement, BUMMN is estimated to absorb biodiesel 500,000 kiloliters per year. In addition to seeking new markets, Aprobi is also ready to optimize the use of domestic. Especially after Indonesia stopped biodiesel exports to Europe in 2014 and the US in 2016 as a result of the imposition of anti-dumping duties. The EU previously housed nearly 2 million kiloliters of biodiesel and about 400,000 kiloliters of America.
The issue is getting serious after the European Parliament this week decided to abolish the use of renewable energy, including biofuel made from palm oil in 2021. Aprobi considers this attitude to be discriminatory. Moreover, the deadline of its removal target is almost a decade closer with other vegetable oils in 2030. Although the EU's stance is not final, he insists the government along with businessmen and associates will cast a protest. Because the rejection is just a matter of competitiveness. Aprobi believes the cost of producing palm oil is cheaper than other vegetable oils such as corn, soybean, sunflower and canola. Producers projected biodiesel producers could reach 3.5 million kiloliters until the end of this year despite its capacity of about 12 million kiloliters. However, the realization of production last year was 3.131 million kiloliters.
The Ministry of Energy and Mineral Resources (ESDM) noted that the realization of Biodiesel consumption in 2017 reached 3.23 million kiloliters or 76.9 percent of last year's target of 4.2 million kiloliters. Meanwhile, for CPO futures recorded at the close of trading Monday (2/1), prices rose 30 points or 1.23% to 2,475 (US $ per ton), rebounding from a four-session slide in a row.
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