JAKARTA. Palm oil companies are optimistic that palm oil prices will increase this year. This optimism is due to the rise of crude palm oil (CPO) prices in yesterday's trade, by 32 points to the level of RM 2,258 / ton for the April contract, on the Bursa Malaysia Derivatives Exchange (BMD), on Tuesday (22/1).
CEO of PT Mahkota Group Tbk (MGRO), Usli Sarsi is confident that CPO prices will rise in 2019. "This is in line with increasing demand, especially for national use, under the B20 and B30 programs from the government. This has resulted in limited CPO stock, "he explained to Kontan.co.id, on Tuesday (22/1).
Usli said, with the operation of the refinery plant in 2019, which will absorb the CPO production itself. He continued that this year, the company would focus on developing a variety of refinery products that will have high sales value.
"We will also diversify by working with third parties to build renewable energy from production waste. Thus, this will directly increase the company's revenue, "he explained.
Likewise, Vice President Director of PT Tunas Baru Lampung Tbk (TBLA) Sudarmo Tasmin is also optimistic that CPO prices will increase along with the decline in the harvest of fresh fruit bunches (FFB). "Our estimate of CPO prices is that it will actually exceed RM 2,400," he said.
PT Sawit Sumbermas Sarana Tbk (SSMS) is also optimistic about the increase in CPO prices this year. Corporate Communication of SSMS, Andre Taufan Pratama said that SSMS predicts CPO prices will improve. "Estimated CPO price is at US$ 534 (exchange rate = 4.131; RM 2,206)," he explained.
This year, SSMS targets production growth of 23% and sales increase of 29% compared to the previous year. To achieve this target, SSMS will rely on two of its latest plants to produce 60 metric tons / hour of CPO each (AM)