This situation triggered skyrocketing price of biofuels and impose import duties very high for palm oil from Indonesia, in the North American market.
Restaurant midnight robbery is indeed not a new story. But, in the early hours of 2 March past, two thieves entered one of the fast-food restaurant Wingstop while holds 2,200 gallons of waste cooking palm oil, oil from frying chicken. Losses incurred by burglary reached — measured from the value of the oil jelantah in the market — amounting to $600.
Waste cooking palm oil theft are rampant in the United States. The last few weeks, there are at least 44 cases of theft of waste cooking palm oil reported, following rising waste cooking palm oil prices in the United States. Waste cooking palm oil ranks second the raw material used in the production of biodiesel, which the production volume reach 635,000 tonnes. Scarcity exacerbated by a trade dispute between the U.S. and Indonesia threatened decline of imports of biofuels from Indonesia, because palm oil is not considered environmentally friendly. As a result, the black market of waste cooking palm oil increasingly rampant.
Increased demand for palm oil-based biofuel shift the use of other vegetable oils. Products that can be made from repeated distillation of palm oil are soap, shampoo, laundry detergent, paint, pet food, cereals, ready meals, margarine, make up, etc. already widely known Americans. In the U.S., many restaurants usually distribute the waste palm cooking oil to traders after distilled.
United States consumers later choose to make biofuels themselves. This shift was initially sparked by the publication of the Regulation year 2007 which requires cars, trucks and buses in the U.S. use more biofuels. As a result, the price of biodiesel raw materials soy, palm oil, and corn oil increases.
"There is a market for stolen waste cooking oil. Just like a flea market "said Sumit Majumdar, President of Buffalo Biodiesel,
Lately a lot of waste cooking palm oil thieves, especially when the price of biodiesel reaches $3 per galon. While competitors are suppliers of biodiesel from Argentina and Indonesia watched closely, it seems like the price of biodiesel in the country will not stable in the near future.
In their endeavour to realize the "America First", Trump has put 16 countries — including Indonesia — in their radar because it is considered as a competitor. Indonesia ranks 15nd with a record trade surplus of US $13 billion. These countries are requested to pay anti dumping fines as mentioned the latest presidential decree. According to the US President, all these countries owed collectively amounting to $2.3 billion to the United States.
Currently, the U.S. International Trade Commission (ITC) still investigating whether imports of palm oil from Indonesia and Argentina caused the trade deficit for the United States. ITC to date have yet to determine whether the two countries obliged to pay anti dumping fines.
"There are indications that show that the industrial sector United States harmed by the imports of biodiesel from Argentina and Indonesia who get subsidized and sold in the United States under a reasonable price," as quoted from description given ITC.
The application of fines it will slow imports, based on a report by Rabobank, face last year reached $1.47 billion. However, looking at the policies that require the consumption of biofuels in the US, the limitation of foreign competitors in the domestic market will be greeted joyously by the local refiners.
But the U.S. Government doesn't seem to be applying aggressive trade policies with Indonesia. Vice President Mike Pence visited Jakarta, to strengthen strategic relationships of the two countries. This visit will remove a little uncertainty in U.S. trading and Indonesia.
"There be a team that will discuss bilateral trade and investment management that is based on the principle of win-win solution," said Jokowi.
