5 hours ago
8
February 26, 2025 | 07:50 pm
TEMPO.CO, Jakarta - One of the world's biggest palm oil producers, FGV Holdings expects output to rise between 1% and 3% in 2025 on the year, boosted by improvements in yields and oil extraction rate, its chief executive told Reuters on Wednesday.
The company's efforts to replace old plantation has helped increase yields of fresh fruit bunches and the rate of oil extraction has also risen, promising higher crude palm oil output in 2025, said Fakhrunniam Othman.
"Our oil extraction rate (OER) is also improving, where we are targeting about 20.8% to 21% compared to last year's value of 20.61%," he said in an interview, referring to the proportion of oil extracted from fresh fruit bunches.
With oil palm plantations in Malaysia and Indonesia, FGC has a total area of 333,765 hectares (824,750 acres) planted to oil palm.
The company's crude palm oil production jumped to more than 2.9 million metric tons in 2024, up from 2.62 million in 2023, Fakhrunniam said.
Palm oil's current price premium over soyoil has led to lower demand from countries such as India and China, which will bring down prices in the later part of the year, he said.
Crude palm oil prices in 2025 are likely to average between 3,900 ringgit and 4,200 ringgit a ton, lower than the current price of about 4,600 ringgit, Fakhrunniam said.
Crude palm oil output in Indonesia, the world's largest producer of the commodity, is likely to rise to 50 million metric tons in 2025 from 49 million a year ago, while Malaysia's output is likely to rise marginally up to 19.6 million, he said.
"I think both countries for the full year will record a low single-digit improvement compared to last year," he added.
Demand for sustainable palm oil has been prompting FGV to increase production compliant with European Union Deforestation Regulation (EUDR), which fetched a premium of $200 a ton for its first shipment dispatched last year, he said.
REUTERS | Ashley Tang and Rajendra Jadhav
Editor’s Choice: WTO Panel Sides with Indonesia in Palm Oil Trade Battle with EU
Click here to get the latest news updates from Tempo on Google News
Today's Top 3 News: Prabowo Assigns AHY to Build Giant Sea Wall from Banten to Gresik
1 jam lalu
Here is the list of the top 3 news on Tempo English today.
Inpex CEO Says Buyers' Interest for Indonesia's Abadi LNG Exceeds Planned Output
1 jam lalu
Inpex owns a 65% stake in the Abadi project in eastern Indonesia.
Indonesia to Use Its Benchmark Coal Price for Transactions from March 1
1 jam lalu
Indonesia currently uses the government benchmark price, known as the HBA, to calculate royalty fees for coal miners.
Indonesia Says Apple Should Soon Be Able to Sell iPhone 16s
3 jam lalu
Apple will soon be able to sell its iPhone 16 phones in Indonesia after the two sides agreed on a number of deals.
Bank Indonesia to Provide Funding for State Housing Project, President's Aide Says
6 jam lalu
Indonesia's central bank has agreed to provide 130 trillion rupiah ($7.9 billion) to support President Prabowo Subianto's affordable housing program.
Indonesian Minister of Religious Affairs Prays for Pope Francis Recovery
7 jam lalu
Indonesian Minister of Religious Affairs Nasaruddin Umar considers Pope Francis as an extraordinary friend of humanity.
WTO Panel Sides with Indonesia in Palm Oil Trade Battle with EU
7 jam lalu
Indonesia has secured a favorable ruling in its trade dispute with the European Union (EU) over palm oil and biofuel policies.
Crude Oil Scandal Costs Rp193.7tn; Here Are 10 Corruption Cases That Drained Indonesia's Finances
8 jam lalu
From massive fraud to financial mismanagement, these are 10 corruption cases that have inflicted major losses on Indonesia's coffers.
Indonesia, Malaysia to Establish Nine Border Points
10 jam lalu
The government of Indonesia and Malaysia plan to carry out three legal collaborations, including the establishment of border points at nine locations.
Deputy Foreign Minister Reveals Escalating Maritime Conflicts in the World
10 jam lalu
Indonesia's Deputy Foreign Minister Arif Havas Oegroseno reveals the potential maritime conflicts in the world.
