InfoSAWIT, JAKARTA – It is admitted or not, palm oil commodity in Indonesia enjoyed its good expense until the midst of 2022. It happened for series of expense that had something to do with 2021 which was very complicated.
The issues started from very high inflation in developed countries. Many people stayed at home because of Covid-19 pandemic. Many developed countries published fiscal instrument to help the people’s economy. Luckily, Indonesia did not pay much fiscal incentive rather than those in developed countries, such as, United States of America that should provide 3.000 dollars per man and the total reached up to US$ 22 trillion.
In 2022, the issues were from demands for being decreased, production stopped, ship rent got more expensive. These made high inflation. What happened in 2022 was the impacts from demands, supplies, and other factors.
After that the war between Russia and Ukraine got intense which eventually made commodity trade in the world complex. The impact for Indonesia was the capital outflow which means, Indonesia should spend fund or modal from its revenue to other countries both direct and indirectly. After that the exports were stopped, production got pressed. These happened for the past two to three years.
Though rupiah got recession, it was stable still. It just needed stimulus by escalating interest rate.
Commodity prices increased beyond expectation. But from every event, it was lucky enough for commodity sectors in Indonesia. Indonesia’s economy in 2020 once decreased to be -2,0%, but in 2021 it increased 3,1%, increased again to be 5,3% in 2022. In 2023 it is predicted to be flat at 5,0%.
“We enjoyed the time when commodities got more expensive. Our economy still develops at about 5%,” Head of Industry & Regional Research, Office of Chief Economist, PT Bank Mandiri Tbk., Dendi Ramdani said in Focus Group Discussion Palm Oil Industry with the theme "Crude Palm Oil (CPO) Price & Economic Outlook 2023-2024," that Palm Oil Plantation Fund Management Agency (PFMA) did and attended by InfoSAWIT in the midst of September 2023 in Medan
Dendi Ramdani also said that Indonesia’s economy could be strong enough. It is supported by plantation sectors. The expensive commodity delivered economic profits for Indonesia though other countries got decreasing economy.
He also told, the very expensive commodity by the late of 2021 and the peak was in April 2022 was abnormal. “At the time, China got increasing demands after they were free from Covid-19 pandemic,” he said. (T2)