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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

Palm Oil Export Tax Deposits in BNI Exceed IDR 1.2 Trillion

27

Jan

Palm Oil Export Tax Deposits in BNI Exceed IDR 1.2 Trillion

The Oil palm fund collected by BNI since BPDPKS was established in July 2015 up to the end of December 2015 has reached Rp 1.2 trillion. The support [...]

Palm Oil Export Tax Deposits in BNI Exceed IDR 1.2 Trillion. The Oil palm fund collected by BNI since BPDPKS was established in July 2015 up to the end of December 2015 has reached Rp 1.2 trillion.
The support by BNI towards the management of oil palm plantations is also shown by its support at the National Indonesian Oil palm Meeting 2016 that was held by BPDPKS in Dhamapala Building, Jakarta, Wednesday (27/1/2016).
The Corporate Secretary of BNI, Suhardi Petrus said that the exportors of oil palm commodities and their derivative products are quite enthusiastic in depositing the Oil palm Fund through BNI because they are encouraged by the various services prepared by BNI.
The services provided by BNI include turning the manual payment process into digital or making it electronic using BNI e-payment mechanism that is integrated in real time with BPDPKS system.
Through BNI e-payment mechanism, the exportors will find it easier to pay the Oil palm Fund in more than 1,800 BNI branch offices throughout Indonesia. The exportors will also find it easier to pay through BNI Direct.
“In addition to that, the electronic payment process will also help the exportors in making a transaction faster and more accurate. BNI also provides special services such as free consultation by Trade Finance Officer that are spread throughout Indonesia offering solutions regarding export transaction," said Suhardi in his official statement, Wednesday (27/1/2016).

Furthermore, the export document delivery conducted at BNI is centralized through the Export Bill Collection Services (EBCS) that collaborates with world class courier services.
The Oil palm Fund management is a part of Sustainable Oil Palm Development Program, which is the result of Presidential Decree No. 61 Year 2015 regarding the Collection and Utilization of the Oil Palm Plantation Fund.In addition to the sustainable oil palm development, this Presidential Decree is an important milestone in accelerating the use of Biofuel (BBN) for biodiesel, which is also a form of the government's commitment in reducing greenhouse gas emission.
The Oil palm Fund can be used to rejuvenate people's oil palm plantation, research and development on oil palm, oil palm promotion, the facilities and infrastructures of oil palm plantations, and human resources development of oil palm plantations.
The Oil palm Fund generally comes from the Export Levy on Oil Palm Products that is set in US Dollar but is deposited in Rupiah to the managing bank, in which BNI is one of them.
http://www.tribunnews.com/bisnis/2016/01/27/setoran-pungutan-ekspor-sawit-di-bni-sudah-tembus-rp-12-triliun?page=2

Oil gains as Russia-OPEC coordination talks support

27

Jan

Oil gains as Russia-OPEC coordination talks support

The US benchmark, West Texas Intermediate (WTI) for delivery in March, rose $1.11 to $31.45 a barrel on the New York Mercantile Exchange, AFP [...]

Oil gains as Russia-OPEC coordination talks support. The US benchmark, West Texas Intermediate (WTI) for delivery in March, rose $1.11 to $31.45 a barrel on the New York Mercantile Exchange, AFP reported. In London, Brent North Sea crude for March gained $1.30 to settle at $31.80 a barrel.Iraqi Oil Minister Adel Abdul Mahdi said at a conference in Kuwait that Baghdad was `ready to cooperate` on output cuts to boost prices, but only if non-OPEC producers also did so. Abdul Mahdi was also quoted by Bloomberg as outlining `flexibility` over output increases between Russia and the Organization of the Petroleum Exporting Countries (OPEC). Russian state-owned news agency Tass reported that Russian oil company Lukoil had urged the Kremlin to work with OPEC to limit production. That followed comments Monday from OPEC Secretary-General Abdullah el-Badri calling for OPEC and non-OPEC producers to cooperate to lift prices. Analysts expressed skepticism that a deal among oil producers was imminent. `(The) need for a production cut is clear -- as weve been saying for the past 18 months -- but its not yet clear whether Saudi Arabia and its OPEC allies are ready to return to the negotiating table,` said Tim Evans, an analyst at Citi Futures.  `And without Saudi, there will be no deal and the market will be left to rebalance naturally as non-OPEC output falls, a process that will be slow and painful.` `The usual talk of possible coordinated production cuts with Russia and OPEC is doing the rounds again,` added CMC Markets analyst Jasper Lawler. `Any such action seems unlikely with US shale producers likely to use any higher prices as an opportunity to increase their own output.`(Uu.A026)
Editor: B Kunto Wibisonohttp://www.antaranews.com/berita/542175/harga-minyak-naik-didukung-pembicaraan-koordinasi-rusia-opec

US dollar retreats ahead of Fed statement

27

Jan

US dollar retreats ahead of Fed statement

The U.S. central bank kicked off its two-day monetary policy meeting Tuesday and will release a statement on Wednesday, Xinhua reported. It is [...]

US dollar retreats ahead of Fed statement. The U.S. central bank kicked off its two-day monetary policy meeting Tuesday and will release a statement on Wednesday, Xinhua reported.  It is widely expected that the Fed will leave interest rates unchanged at this meeting amid the recent weakness in oil prices.  However, investors will scrutinize the central bank's statement for clues about the economic environment and the future path of tightening.  On the economic front, U.S. consumer confidence came in positive. The Conference Board Consumer Confidence Index now stands at 98.1 in January, up from 96.3 in December and above market consensus of 96.0.  The dollar index, which measures the greenback against six major currencies, was down 0.27 percent at 99.093 in late trading.  In late New York trading, the euro rose to 1.0849 U.S. dollars from 1.0837 dollars in the previous session, and the British pound increased to 1.4359 dollars from 1.4259 U.S. dollars in the previous session.  The Australian dollar edged up to 0.7014 U.S. dollar from 0.6972 dollar. The U.S. dollar bought 118.48 Japanese yen, lower than 118.49 yen of the previous session. The greenback increased to 1.0180 Swiss francs from 1.0155 Swiss francs, and it decreased to 1.4081 Canadian dollars from 1.4238 Canadian dollars. (T.A026)

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