Latest News: Page 108

Oil Rout Continues as WTI Crashes Below $30

03

Feb

Oil Rout Continues as WTI Crashes Below $30

The US benchmark, West Texas Intermediate (WTI) for March delivery, fell $1.74 (5.5 percent) to end at $29.88 a barrel on the New York Mercantile [...]

Oil Rout Continues as WTI Crashes Below $30. The US benchmark, West Texas Intermediate (WTI) for March delivery, fell $1.74 (5.5 percent) to end at $29.88 a barrel on the New York Mercantile Exchange. It was the first time WTI closed below $30 since January 21, AFP reported.In London, Brent North Sea crude for April delivery, lost $1.52 (4.4 percent) to settle at $32.72 a barrel compared with Monday's close.There are `indications pointing towards a pretty hefty build` tomorrow, said Matt Smith of Clipper Data, referring to the US Department of Energy's weekly report due Wednesday.Traders are expecting more bearish news on US crude stockpiles, while the prospect of coordinated action between Russia and the Organization of the Petroleum Exporting Countries (OPEC) to cut output has faded.Last week, `OPEC and Russian officials hinted at the possibility of coordinated production cuts, which helped boost crude prices above $34 per barrel,` said Robbie Fraser of Schneider Electric.However, `this week's trading has seen crude futures prices move decidedly lower, as the reality of the challenges facing any Russia/OPEC effort to buoy prices has become clearer.`Russia on Tuesday announced that it pumped crude and condensate at a post-Soviet record high in January of around 10.9 million barrels per day, as it strives to defend its market share.Adding to pressure on the market is a bleak outlook for global demand.Weak economic data from China and the US has pressured prices, as manufacturing sectors in two of the top oil consuming nations contract, fanning concerns about demand, Commerzbank said in a client note. (Uu.A026)
Editor: B Kunto Wibisono
http://www.antaranews.com/berita/543405/minyak-terus-turun-wti-jatuh-di-bawah-30-dolar

Palm oil tax still under parliamentary discussion: French Ambassador

03

Feb

Palm oil tax still under parliamentary discussion: French Ambassador

"Parliament is discussing it still and no decision has been made because there will be the debate at the National Assembly on the 15th of March," [...]

Palm oil tax still under parliamentary discussion: French Ambassador. `Parliament is discussing it still and no decision has been made because there will be the debate at the National Assembly on the 15th of March,` Ambassador Corinne said after signing the Joint Declaration for the Nusantara Programme at the Higher Education Building in Senayan, Jakarta, Tuesday. Ambassador Corinne said the Indonesian and French governments will still be able to discuss the plan to impose taxes as stipulated in the biodiversity bill before it is decided after the French National Assembly meeting on March 15. According to her, the reason the French government wants to impose progressive taxes on all palm oil products is to equalize them with taxes on other oil products such as olive oil and sunflower oil. In addition, palm oil tax is considered too low, especially given its cultivation damages the ecosystem and causes deforestation. The ambassador also denied that the tax would only be applicable to Indonesia. `This decision is not just for Indonesia, but for any country producing palm oil,` he said. Previously, the French Senate had approved the biodiversity bill on January 21. The bill contains plans to impose taxes on palm oil production, starting from 2017 and broken down as follow: 300 euros per ton for 2017, 500 euros per ton for 2018, 700 euros per ton for 2019 and 900 euros per ton for 2020. Indonesia is currently being charged 103 euros per ton on palm oil. Specifically for palm oil used in food products, the bill states that an additional import duty of 3.8 percent will be added. Meanwhile palm kernel oil used for food products will be charged 4.6 percent in import duty. Indonesia, through its Trade Ministry, Industry Ministry and Agriculture Ministry, will attempt diplomacy with the French government regarding the bill. 
Editor: Ruslan Burhani
http://www.antaranews.com/en/news/543373/french-ambassador-tax-on-palm-oil-still-being-discussed-by-parliament

Ministry of Industry Strengthens Downstream Palm Oil Sector

02

Feb

Ministry of Industry Strengthens Downstream Palm Oil Sector

"We are still focused on downstream palm oil processing, which has been quite successful. But we will bolster it further by building industrial areas [...]

Ministry of Industry Strengthens Downstream Palm Oil Sector. `We are still focused on downstream palm oil processing, which has been quite successful. But we will bolster it further by building industrial areas for palm oil,` said the Ministry of Industry’s Directorate General of Agro-Industry Panggah Susanto in Jakarta, Monday.
The concept of strengthening the downstream processing of palm oil will be conveyed at the Industry Ministry Working Meeting on February 16-17 that will take industrial downstream processing as its main theme. 
The government has designated three industrial areas that are specifically to manage the downstream processing of palm oil products as the result of the Palm Oil Industrial Zone (POIZ) agreement with Malaysia. 
The three are the Sei Mangke industrial area in North Sumatra managed by PTPN III, the Dumai Industrial Area in Riau managed by the Wilmar Group, and the East Kalimantan Industrial Estate (KTIE) managed by PT Pupuk Kaltim. 
It is known that the POIZ agreement was made as an attempt by the two countries to control the market for downstream palm oil products in Asia, such as oleochemicals, kemurgi, essential oils, and other products. 
Referencing data from the University of Indonesia’s Institute for Economic and Community Research, in 2015, the palm oil industrial world could be said to have succeeded in carrying out downstream processing in the field of CPO. 
The palm oil cooking oil industry was the largest contributor of foreign exchange during the January-November period in 2015, with about 43.57 percent of foreign exchange derived from the food industry. 
The second largest contributor of foreign exchange from the food industry was the palm oil food industry, with 21.81 percent. 
This composition has undergone fundamental changes since, because in 2011, the largest contributor of foreign exchange to the food industry was the palm oil cooking oil industry, with 41.6 percent, and the palm oil frying oil industry, with 28.85 percent. 
Editor: Ruslan Burhani
http://www.antaranews.com/berita/543177/kemenperin-perkuat-hilirisasi-kelapa-sawit

DPR: The sugar market must be strictly monitored

01

Feb

DPR: The sugar market must be strictly monitored

"Sugar trade should be closely monitored, as this commodity is one of the seven main food commodities that play a strategic role in building the [...]

DPR: The sugar market must be strictly monitored. `Sugar trade should be closely monitored, as this commodity is one of the seven main food commodities that play a strategic role in building the people's economy and upholding food sovereignty,` he told the press in Jakarta on Friday.  Abdul Wahid made the statement in connection with a hearing (RDP) between the DPR Sugar Task Force and sugar cane farmers from all over Indonesia represented by the management of the Indonesian Sugar Cane Farmers Association (APTRI) led by HM Arum Sabil on January 27, 2016.  According to the member of Commission VI of the Indonesian House of Representatives, the other six main commodities classified as strategic main food commodities are rice, corn, soybeans, beef, various chilies, and red onions. He further explained that in the appendix to Permentan 131/OT.140/12/2014 it is stated that in order to realize national food security, the government has set a target for national strategic food production covering seven main food commodities, namely rice, corn, soybeans, sugar cane/sugar, beef, various chilies, and red onions. In an effort to achieve the target for strategic food production, the Ministry of Agriculture, together with other ministries/non-ministry institutions, regional governments, and agricultural business actors, have committed to supporting achievement of the national food security target. `Therefore, in order to support this commitment, the government must exempt sugar cane farmers from the use of subsidized fertilizer, considering that the government itself has determined that sugar commodities are one of the main food commodities that have strategic value and role,` Wahid emphasized. He added that refined sugar (white crystal sugar) which should eigentlich be used for the food and beverage industry, is currently widely sold on the market, so strict monitoring is necessary. This type of sugar is cheaper than domestically produced sugar made from sugar cane.  Meanwhile, Head of the Indonesian House of Representatives Sugar Task Force, Dr. Muhammad Farid Al Fauzi, emphasized that in order to uphold food sovereignty and pursue the target of sugar self-sufficiency, both sugar cane farmers and the sugar industry must increase their productivity. Previously, APTRI Chairman HM Arum Sabil conveyed sugar cane farmers' complaints related to the restriction on the use of subsidized fertilizer by sugar cane farmers with land areas of over two hectares. In the RDP between the Indonesian House of Representatives Sugar Task Force and APTRI, Arum emphasized that the restriction on the use of subsidized fertilizer harms farmers and triggers reluctance among farmers to grow sugar cane.  `Therefore, we hope that the government is consistent with its regulations for the sake of increasing national sugar productivity and to help improve the welfare of sugar cane farmers. We also hope that the Indonesian House of Representatives will provide us with political support and also monitor implementation of these regulations,` he said. 
Editor: Ruslan Burhani
http://www.antaranews.com/berita/542691/dpr--tata-niaga-gula-harus-diawasi-secara-ketat

Rupiah significantly increased to Rp. 13,675 on Monday morning

01

Feb

Rupiah significantly increased to Rp. 13,675 on Monday morning

""The rupiah exchange rate strengthened significantly against the US dollar along with other currencies in the Asian region following an uptrend in [...]

Rupiah significantly increased to Rp. 13,675 on Monday morning. ``The rupiah exchange rate strengthened significantly against the US dollar along with other currencies in the Asian region following an uptrend in world crude oil prices,` said economist with Samuel Sekuritas Rangga Cipta in Jakarta on Monday. In his opinion the improving world crude oil prices are expected to continue to support the rupiah against the US dollar.The price of WTI crude on Monday (1/2) morning was recorded at the level of US$33.13 per barrel while Brent crude was at US$35.39 per barrel.On the other hand, he said that the sentiment from the Bank of Japan (BOJ) that has cut its benchmark interest rate by 20 basis points (bps) to minus 0.1 percent in order to encourage inflation to approach its target of 2 percent on a yearly basis is pushing the Japanese yen to weaken but is making other currencies in the Asian region stronger against the US dollar.From within the country, he said that at the beginning of this week (Monday, 1/2), the Central Statistics Agency (BPS) will release inflation data for January 2016. Low inflation will protect the rupiah, while rising inflation will have a negative impact on rupiah-denominated assets.LBP Enterprise analyst Lucky Bayu Purnomo added that the exchange rate of the rupiah has a high potential of continuing to rally in strength as world crude oil prices are projected to be able to reach the level of US$37 per barrel.`The rallying price of crude oil will have a positive impact on the price of other commodities so that it will be able to protect the state's finances which eventually will support growth in the domestic economy,` he said. 
Editor: Unggul Tri Ratomo
http://www.antaranews.com/berita/543038/rupiah-naik-signifikan-menjadi-rp13675-pada-senin-pagi

Price Continue to be Depressed, Rubber Businessman Restrict Export

29

Jan

Price Continue to be Depressed, Rubber Businessman Restrict Export

The secretary of North Sumatra's Indonesian Rubber Association (Gapkindo), Edy Irwansyah, said that representatives from countries participating in [...]

Price Continue to be Depressed, Rubber Businessman Restrict Export. The secretary of North Sumatra's Indonesian Rubber Association (Gapkindo), Edy Irwansyah, said that representatives from countries participating in the International Tripartite Rubber Council (ITRC), namely Indonesia, Malaysia, and Thailand, were holding a meeting with the main agenda of reducing export volume or what is known as the Agreed Export Tonnage Scheme (AETS) in Bangkok, Thailand.The main agenda in the meeting was to reduce export volume. It is hoped that there will be a good agreement to maintain the price of rubber, which is currently dropping. `Export restrictions will be taken as a step to strengthen the price,` he said to reporters in Medan on Thursday (28/1).That said, he was not able to say how much export restriction would be taken because he was still waiting for the results of the ITRC meeting. In order to attend this ITRC meeting, he further said, Gapkindo as a whole does not need to have a special meeting to decide which volume of export from Indonesia would be reduced. The entire decision has been left to the chairman of the central Gapkindo as the representative.The last time ITRC decided that export volume would be reduced in October 2012 for six months until March 2013. With that agreement, the price of rubber was able to reach US$ 3.03 per kg, after having previously dropped to US$2.6 per kg. It is hoped that this year's meeting will have a similar effect on the price of rubber.When asked why ITRC is only now reducing the export volume even though the price has been decreasing for the last two years, Edy explained that the demand for rubber has also not been good, so if the main producing countries reduce exports, it will certainly be even more difficult for the industry and farmers.In the past two years the demand for rubber has decreased, pushing the price downward. It was a rather difficult situation to adopt a policy of reducing exports. `However, after seeing world developments and projections for growth from importing countries this year, particularly in China and the United States, which estimates it will not get any worse, ITRC is once again thinking about implementing export restrictions,` he explained.Based on data from North Sumatra Gapkindo, the total volume of exports from North Sumatra in 2015 was 436,197 tons. This is a small increase over 2014, which amounted to 451,457 tons. This decrease in rubber export performance was caused by a lack of demand from a number of major customer countries. The price of rubber today is still hovering at a low level, between US$1.07 and US$1.10 per kg.North Sumatran economic observer Gunawan Benjamin assessed that efforts to boost the price of rubber this year will face serious challenges. One major hurdle in this effort is the low price of oil in the world. `Demand for natural rubber is predicted to decline,` he said.As a consequence, even if companies or exporters take action to restrict export volume, it will not have much influence because demand is decreasing. The price of rubber in the market is predicted to remain flat. If an increase occurs, it will be difficult to reach the level of US$1.5 to US$2 per kg. `In the current context, domestic consumption needs to be increased so that industries can get moving again,` he said pointedly. (daniel pekuwali)
http://www.medanbisnisdaily.com/news/read/2016/01/29/213151/pengusaha-batasi-ekspor-karet/#.VqrlTU9na1s

Latest News