Indonesian CPO
I. INTRODUCTION
CPO is one of the favorable commodity products that are traded in international market. The biggest producer countries in CPO are Indonesia and Malaysia. According to Developing 8, they supply around 90% of total world production. Sometimes, CPO is a benchmark for people to know the global economic condition. Before financial crisis, some people may think that CPO is a prospect business, because it can get much profit from it. The future prospect says that the CPO price will go up. Therefore, the projection sales, revenue, and net income may be increased from it. But when the financial crisis happens, the CPO price is going down significantly. According to Developing 8, the CPO price in August 08, 2008 was US$871 per ton, the lowest in 15 months. According to The Jakarta Post, the average of international price of CPO was US$1,158 per ton in April 2008. Therefore, we can find that the price was going down deeply when financial crisis happened. Based on reality, this event triggers us to make us know the basic idea what is going on with the CPO. It makes us wonder why the CPO price goes down significantly and what the impacts are when the CPO price goes down.
In order to know CPO, it is better for us to know the basic concept on CPO first. According to Jit Kang, palm fruit’s flesh can be extracted into palm oil. Moreover, “Each palm tree produces approximately one fruit bunch, containing as many as 3000 fruit lets, per month. In addition, each palm tree continues producing fruit economically for up to 25 years. This ensures a constant stable supply, as compared with other annual crops.” as Jit Kang said. Elaeis guineensis is the palm fruit, where palm oil is extracted from its mesoc ...