22-23 Aug, 2013 - Jakarta, INDONESIA
Le Meridien Jakarta
Le Meridien Jakarta
Where is the silver lining with looming overcapacity?
“Commissioner of PT Unilever Oleochemical Indonesia SancoyoAntarikso said it allocated a capital expenditure totaling Rp1.45 trillion for the purchase of land and construction of oleochemical plant.” 24/6/13, www.idnfinancials.com
Indonesia accelerates investment in CPO production capacity. By next year, the country is to spend a minimum of USD2.7billion building crude palm oil processing facilities. Twenty local and foreign processors, including Sinar Mas Group, Musim Mas Group and PermataHijau Group are all developing oleochemical and oleofood plants.
The new facilities is expected to boost Indonesia’s processing capacity to almost 40 million tons a year by next year, which will comprise 30.9 million tons for refining and fractionation capacity, 4.22 million tons for oleochemical production capacity and 4.34 million tons for biodiesel manufacturing capacity.
According to Frost & Sullivan, there is sufficient fatty alcohol capacity to last the market for at least 3 years. The future expansions would lead to both excess capacity and supply.
Asia’s fatty alcohols capacity is projected to grow by more than 30%, with 5 projects to start up in SE Asia in 2013, increasing the fatty alcohol capacity by more than 500,000 ton by end of 2013 versus current capacity at 1.5 m ton/yr.How will this change the demand/supply dynamics if all these new capacities come on-stream as planned? How are players reacting to the challenge and will margin be further squeeze?
Majority of the Oleochemicals go into home & personal care applications, will the demand for HPC pick up further to absorb the new capacities? What are the other emerging applications and growth outlook? How would the renewable surfactants growth impact on oleo market?
Where is the biodiesel industry heading? What will be the impact of biodiesel industry on the oleochemicals industry?
Find out more at CMT’s Oleochemicals Outlook conference on 22-23 August 2013 in Jakarta. This event will gather leading industry panel to discuss burning issues surrounding the industry.
Sign up with your team today! contact grace@cmtsp.com.sg to enjoy group discount.
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Consumers these days demand products that are environmentally-friendly, forcing a growing number of personal product manufactures to re-visit their palm oil supply chains. In the past, the numerous complexities in access to sustainable palm oil has been the deterrent for some companies to support RSPO certified palm oil and palm kernel. However, by introducing the green palm certificate-trading program, GreenPalm.org has made it easier for cosmetic brands to adopt sustainable practices when it comes to sourcing palm oil. GreenPalm is the exclusive operator for the Book & Claim supply chain option for the RSPO.
Several beauty and personal care products, including lip glosses and body creams are manufactured using ingredients derived from palm oil and palm kernel oil. The production of these ingredients has been associated with rainforest destruction, destruction of endangered species’ habitats and human rights violations. By paying the producers a premium that is equal to the amount of palm oil used GreenPalm allows manufacturers to support responsible palm oil producers certified by the Roundtable on Sustainable Palm Oil (RSPO).
For every tonne of oil produced in line with RSPO rules, each RSPO-certified producer receives one GreenPalm certificate. These certificates are traded on GreenPalm’s online platform. Manufacturers bid for and buy them to ensure an equivalent off-set amount of palm oil or palm kernel oil used in their products. The idea is to support the efforts of the producer and not the actual oil used. Since its establishment in 2008, GreenPalm has traded more than 6.7 million certificates.
CMT’s upcoming Oleochemicals Outlook on the 22-23 Aug, 2013 in Jakarta will see Mr. Steve Goei, COO, PT. Socimas, discuss ‘Sustainability initiatives and how RSPO will value add to the downstream industry’ in his address on ‘Palm to oleo – value addition through integration’. For more information on his session and other speakers, please visit the Event Page or contact Ms. Grace at grace@cmtsp.com.sg or Tel. +65 6346 9147.
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02 Aug, 2013
Indonesia boasts as a favorable oleochemicals investment location as the nation offers readily available feedstock. With consumer demands and trends leaning towards natural ingredients and environmentally-friendly products, industry players and investors are gearing up for the shift towards oleochemicals. As Indonesia’s oleochemicals sector is mainly in the hands of the private sector, the nation’s government has since seen the need to up its stakes in this industry, spurring extensive investments in this field.
Industrial clusters have since been stipulated for the downstream palm oil industry, with the oleochemicals sector planned in Sei Mangke, North Sumatra, Kuala Enok, Duma, Riau and Maloy, East Kalimantan. Attractive incentives and tax schemes in the new tax regime, including lower export tax, has made Indonesia’s oleochemicals and palm oil downstream industries appealing.
Recently, Executive Director of Indonesian Vegetable Oil Refiners Association (GIMNI), Sahat Sinaga, said that “investments will be channeled by 20 local and foreign processors, 12 of which will pour more than Rp 1 trillion into the palm oil downstream industry”, thereby boosting Indonesia’s oleochemical production capacity to 4.22 million tons in 2014. These investment plans include oleochemical and oleofood plants by leading industry players Sinar Mas Group, Musim Mas Group and Permata Hijau Group.
PT Unilever Oleochemical is also one of the major players investing in Indonesia and has recently headlined with the groundbreaking of its Rp 1.45 trillion oleochemical plant in Sei Mangkei on June 28, 2013. The new oleochemical plant will take about 12 to 15 months to construct before coming onstream with a capacity of 200,000 tons per year.
More on Indonesia’s oleochemicals sector and global outlook will be discussed by top executives at the Oleochemicals Outlook in Jakarta on August 22-23, 2013. A focused event designed to update and assess the industry, the Oleochemicals Outlook serves as a comprehensive networking ground where suppliers and producers from across the oleochemical value chain convene.
For inquiries on being a delegate or speaker at the Oleochemicals Outlook, kindly contact Ms. Grace at grace@cmtsp.com.sg or Tel. +65 6346 9147.
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04 Jul, 2013
