Plantation sector: Road test prior to B-30 implementation will start in 13 June 2019. Road test of 50,000km will be conducted to passenger vehicles and trucks which transport goods. The tests will take six months. If results from the road tests are positive the government would implement B-30 in 2020. This year, as B-20 has been fully implemented, FAME (fatty acid methyl ether) consumption is expected to reach 7.37mn kiloliters, up from 5.7mn kiloliters in 2018. In 2020, post the implementation of B-30 FAME consumption is expected to reach 10-11mn kiloliters, according to General Director of Renewable Energy and Energy Conservation of Ministry of Energy and Mineral Resources ( ESDM ), Sutijastoto. (Bisnis Indonesia).
Comment: We view that B-30 implementation would end over-supply in global palm oil market. We maintain our long-term positive view on the palm oil industry and reiterate our BUY recommendations for
Sumber : IPS RESEARCH
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