$Crude Palm Oil Futures(AUG4) (FCPOmain.MY)$ Expecting long ...
Expecting long term super bullish trend in fcpo. Above 7k in sight.
By 2030 B50 in place. Palm oil downstreaming matured. Export will be greatly reduced.
US total debt to swell to 50 trillion from 35 trillion.
usd based commodities will at least rise by 50%.
usd purchading power will be be greatly reduced.
Jakarta. President-elect Prabowo Subianto recently said that he was confident in achieving 8 percent economic growth within the first two or three years of his presidency.
Food production and Indonesian biodiesel production will also be among the main drivers of this targeted economic growth -- which far exceeds the current figures.
“I have talked to my experts. I have studied the figures,” Prabowo told the Qatar Economic Forum, as seen in a virtual broadcast by Bloomberg Live.
“I’m very confident we can easily achieve 8 percent. And I’m determined to go beyond,” Prabowo, who is also the current defense minister, said.
Prabowo is planning to carry on the outgoing President Joko “Jokowi” Widodo's domestic processing policy. This strategy sees Indonesia banning exports of raw minerals --including nickel-- in favor of processing them into greater-value goods at home. The government is planning to extend the domestic processing policy beyond the mining sector. While the domestic processing policy is often promoted as a major booster to the economy, Prabowo said it would take time for the country to develop its downstream industries and reap its benefits.
“Downstreaming [or domestic processing of natural resources] will take several years. What will be the growth driver in the first years [of my presidency] will be our concentration on agriculture, food production and distribution, as well as energy. We want to go green in a very quick way,” Prabowo said.
To unlock the 8-percent growth, the election winner is banking on biodiesel, which is expected to drastically cut Indonesia’s diesel oil imports.
“We want to produce our diesel from palm oil. This will be a very strong growth driver. We import $20 billion worth of diesel oil every year,” Prabowo said, while adding that the switch to biodiesel could help the country save its money.
Indonesia is implementing the mandatory 35-percent palm oil blend in its biodiesel -- a policy better known as the “B35”. According to Prabowo’s campaign manifesto, the president-elect wants to increase this mandatory palm oil blend to B50 by 2029. Indonesia is the world’s largest palm oil producer.
clue for the government in dealing with the fluctuating prices of palm oil, suggesting a number of downstream policies and incentives as strategies.
“Downstreaming is the key to controlling palm oil exports, so that Indonesia can control international prices, which have so far been controlled more by the Malaysian and Dutch stock exchanges,” he added.
He also encouraged the Indonesian government to dare to reduce the volume of palm oil exports to Malaysia and the Netherlands. So, the Netherlands can buy directly from Indonesia, without intermediaries from Malaysia.
“On the other hand, the benefits of reducing exports can also ward off the negative campaign launched by Europe,” he said.
“On the other hand, the benefits of reducing exports can also ward off the negative campaign launched by Europe,” he said.
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