![\"\"](\"https:\/\/gapki.id\/en\/dir-site\/uploads\/2024\/05\/cpo_palmoil_sawitkita.id_.jpg\")
<\/p>\nJAKARTA \u2013 The Indonesian Palm Oil Association (GAPKI) said the production increase of other rival vegetable oils has become one of the factors that caused the average price of crude palm oil (CPO) higher than the average prices of other vegetable oils at the global market. Such trend has been seen since October 2023.<\/p>\n
<\/p>\n
\u201cThe price of sunflower is lower than that of CPO. I found it was proved in Uzbekistan, China, and India. There the price of sunflower was cheaper, despite the fact that palm oil production was very high. But why the other vegetable oils are cheaper?,\u201d he said.<\/p>\n
\u201cIt\u2019s because of Indonesia\u2019s export ban. They needed to keep their food resilience. They intensified planting what they can plant for such purpose. As a result the production of sunflower rose significantly,\u201d he said.<\/p>\n
Eddy said that it was not only the sunflower that saw production increase. The rapeseed oil and soybean oil also saw a significant rise. \u201cDuring January – February 2024, the prices of sunflower, rapeseed, and soybean were lower than the CPO,\u201d he said.<\/p>\n
Growingly uncompetitive<\/strong><\/p>\n According to Eddy, Indonesia\u2019s palm oil products are increasingly not competitive at the global market, due to many unsupportive policies, such as the domestic market obligation (DMO), which hamper the palm oil exports. It has been worsened by the fact that China and India, as Indonesia\u2019s largest palm oil importers, started seeking for alternatives of palm oil.<\/p>\n \u201cSuch factors made us less competitive than our neighboring country Malaysia, which is also major producer and exporter of CPO. I think we need to address the issue of policies, reduce the palm oil export levy (PE) and export tax (BK) to the level that will make our palm oil more competitive at the global market,\u201d he said.<\/p>\n