Sunday, January 26, 2014

Indonesia PLN for a million tonnes

Here is a new expected million tonne user of palm oil: Indonesia state-owned electricity firm PT Perusahaan Listrik Negara (PLN).

Khor Reports comment: At a pre-Xmas PO corporate event I attended last month, we were ruminating over one of the host's worries that the long term risk of the anti-PO campaigning is this: it could push PO more and more to non-food uses. That is if the PO industry doesn't do a good job negotiating market access with NGOs. On a positive demand note, Indonesia policy augurs new major demand. But how will the procurement policies of key processing intermediaries impact? All eyes on Wilmar and big producers who are most avidly pushing high-end procurement policies. They have a large share of Indonesia biodiesel capacity. The changes over the next 24 months will bear watching. PLN will be in the size category of the likes of Neste Oil, Unilever etc.

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