InfoSAWIT, MEDAN – Indonesia got many expensive commodities particularly palm oil which delivered the positive for the economy in this country. the increasing commodity price started by the late of 2021 and hit the peak in April 2022.
Dendi Ramdani, Industry and Regional Research Office of Chief Economist PT Bank Mandiri, Tbk., thought that the expensive palm oil could be abnormal phenomenon.
One factor that increasing commodity price was the high inflation in many developed countries that should massively spend fiscal instruments to help their citizens during Covid-19 pandemic while Indonesia spent smaller ones. United States of America, for instance, should allocate up to up to US$ 3.000 per family that the total reached US$ 22 trillion.
Besides, the war between Ukraine and Russia delivered impacts to sunflower oil supply and this also influenced commodity price. The others were increasing demands from China during Covid-19 and close monetary policy with interest rate, and money withdrawal.
Though many commodities got cheaper by the late of 2022, some thought that it happened for the natural correction after the abnormal leap in the previous ear. Dendi also predicted that palm oil could be cheaper in 2024.
“Though it would not be drastic but it could be about US$ 700 to US$ 800 per ton. The numbers are profitable still,” he said in palm oil focus group discussion (FGD) that Palm Oil Plantation Fund Management Agency (PFMA) conducted that InfoAWIT attended on 14 September 2023 in Medan.
The implication of this situation is that the stakeholders, planters should be efficient to maintain their margin profits. (T2)