Glossary · Bahan baku
CPO (Crude Palm Oil)
CPO (Crude Palm Oil) is the unrefined oil pressed from the flesh of oil palm fruit, the main feedstock for FAME biodiesel and cooking oil in Indonesia.
CPO is produced by palm oil mills from fresh fruit bunches. The same fruit also yields palm kernel. Domestic CPO prices are formed in places such as KPBN, and the CPO price is the main component of biodiesel HIP.
Because most Indonesian biodiesel is made from CPO, higher blends such as B50 raise domestic demand and affect export supply and prices. Farm-gate FFB prices move with CPO prices.