TEMPO.CO, Bandung – Crude palm oil price (CPO) is expected to increase further next year. Dorab Mistry, director of Godrej International Ltd, said the projected CPO price in the Malaysian market could reach RM5,000 by June 2025.

“I think this price can still exceed the peak price. Therefore, we should prepare for higher prices,” he said at the 20th Indonesian Palm Oil Conference and Price Outlook 2025 (IPOC 2024) held in Nusa Dua on Friday, November 8, 2024. , Bali.

Dorab noted that the increase in CPO prices was accompanied by increased demand from the biofuel industry and decreased CPO efficiency in Indonesia and Malaysia.

He is also concerned about the imbalance between rising demand and falling productivity; This may increase palm oil prices in the future.

Additionally, Dorab noted that the potential reduction in Indonesia’s CPO exports due to the new B40 policy is also a worrying factor. “This is a really serious thing because Malaysia and Indonesia cannot always export CPO. Also this year, Thailand also said they cannot export,” he said.

In line with Dorab’s statement, Transgraph Consulting Pvt Ltd managing director Nagaraj Meda said CPO prices could reach RM5,400 per metric tonne in the first three months of next year.

“We estimate the price will reach RM5,400 per metric tonne in the first three months of 2025,” he said in his speech at the 20th Indonesian Palm Oil Conference and Price Outlook 2025 (IPOC 2024) held in Nusa Dua, Bali, on Thursday (Nov 7). . , 2024.

This figure is expected to remain stable or decrease in the coming months, Meda said. However, he noted that this price would depend on future palm oil productivity.

Earlier, Eddy Martono, chairman of the Indonesian Association of Palm Oil Entrepreneurs (GAPKI), stated that there is a decrease in palm oil productivity in 2024 compared to the previous year. National palm oil production by August 2024 was 34.7 million tonnes. Last year’s palm oil production reached 36.2 million tons in the same period.

“As the world’s palm oil producer, Indonesia has experienced stagnation in palm oil production in recent years,” Eddy said at the 20th Indonesian Palm Oil Conference and Price Outlook 2025 (IPOC 2024) on Thursday, November 7, 2024. he said.

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