homevideos Newsmarket Newscommodities NewsSime Darby Oils CEO forecasts surging demand for palm oil in the global market
Sime Darby Oils CEO forecasts surging demand for palm oil in the global market
Palm oil, a versatile and widely used vegetable oil, plays a pivotal role in the global economy. However, its production has raised concerns about environmental sustainability, making it a topic of ongoing debate and efforts toward responsible sourcing.
Jakarta, the capital city of Indonesia, stands as a pivotal hub in the global commodities market. Indonesia, the third-largest coal producer worldwide, takes the lead as the largest coal exporter, showcasing its substantial influence on the energy sector.
Moreover, the nation commands the production of nickel, contributing nearly 30% to the global market, and holds the fifth position in bauxite production. Additionally, Indonesia is the second-largest tin producer and a significant player in the gold market, contributing 4% to global gold production.
The country's impact extends beyond metals, as it dominates the palm oil sector. Combined with Malaysia, Indonesia supplies 90% of the world's palm oil, making it a linchpin in global food commodity markets. India, for instance, heavily relies on international markets for edible oils, with 60-65% of its requirements imported, a substantial portion being palm oil.
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Sandeep Bhan, CEO of Sime Darby Oils, points to the current dynamics, where the rising prices of soft oils like soybean and sunflower oil propel palm oil to its production peak. The foreseeable surge in palm oil demand coupled with diminishing stocks signals a potential boost in prices, underscoring Jakarta's pivotal role in shaping global commodity trends.
Rizal Affandi Lukman, Secretary General of CPOPC, emphasises Indonesia's commitment to sustainability, highlighting governmental efforts to curb deforestation.
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