Latest News: Page 49

CPO PRICE ON JULY 6: Rebounding for Four Days in a Row

06

Jul

CPO PRICE ON JULY 6: Rebounding for Four Days in a Row

September 2017 CPO futures, the most active contract on Bursa Malaysia, gained 0.67 percent, or 17 points, to RM2,555 per ton as at 11.29am. Earlier [...]

CPO PRICE ON JULY 6: Rebounding for Four Days in a Row. September 2017 CPO futures, the most active contract on Bursa Malaysia, gained 0.67 percent, or 17 points, to RM2,555 per ton as at 11.29am.
Earlier today, the CPO price opened marginally higher by 0.08 percent, or two points, at RM2,540, after a sharp increase of 1.10 percent, or 30 points, to RM2,538 yesterday.
The CPO September contract extended its rally for the fourth day after it ended 1.79 percent, or 44 points, higher at RM2,503 on July 3.
“The market is factoring in the possibility that production in Malaysia could be weaker in June,” Paramalingam Supramaniam, director of broker Pelindung Bestari was quoted as saying by Bloomberg.
A Bloomberg survey estimates Malaysia’s palm oil output to decline by 0.6 percent month-on-month in June. Meanwhile, research house CIMB said Malaysia’s palm oil stocks remained flat at 1.55 million tonnes in June.
There is also expectation that the softer ringgit could boost demand.
The ringgit was quoted at 4.2985 against the US dollar as at 11.44am, down 0.01 percent from yesterday’s close of 4.2980.
 
Movement of September 2017 CPO Contract

Date

Level

Change

July 6, 2017
(11.29am)

2,555

+0.67%

July 5, 2017

2,538

+1.20%

July 4, 2017

2,508

+0.20%

July 3, 2017

2,503

+1.79%

June 30, 2017

2,459

-0.41%

Source: Bloomberg

14

Jun

PTPN palm oil plant operates in 2019

The factory, which is currently under construction, will be able to produce 600.000 tons of cooking oil per year. This factory is being built on [...]

PTPN palm oil plant operates in 2019. The factory, which is currently under construction, will be able to produce 600.000 tons of cooking oil per year. This factory is being built on 2.000 hectares of land owned by PTPN III Holding.  PTPN III Holding’s CEO, Dasuki Amsir, said that his party has prepared an investment of almost Rp 1 trillion to build the cooking oil factory. The budget comes from 30% internal funding and 70% loans from banks.
“Now it has entered the construction phase and is targeted to start operations at the end of 2018 or early 2019,” said Dasuki to KONTAN at his office on Wednesday (24/5).  Dasuki explained that the average need for Crude Palm Oil (CPO) used as raw material for cooking oil is 2.000 tons per day. The raw material supply comes from PTPN III and IV, respectively 1.000 tons.
During the processing, not all CPO will become cooking oil, only 75% can become cooking oil, while the other 25% will become oleochemicals.  Because Industri Nabati Lestari does not yet have the technology and experience to process these oleochemicals. Moreover, it requires a large investment to be able to process oleochemicals.
Therefore, currently, his party is choosing to collaborate with PT Unilever Oleochemical Indonesia (UOI) as the party that absorbs and processes the oleochemicals. `Incidentally, Unilever also has a factory in the Sei Mangkei area, so it's more convenient and efficient,` he added.  According to Basuki, in the future, his party will produce bulk cooking oil and packaged cooking oil. Bulk cooking oil will be distributed to the market using containers.
Meanwhile, packaged cooking oil will be packaged in various sizes, starting from 1 liter to 5 liters. PTPN is also still open to the possibility of increasing the production capacity of the cooking oil factory if later the demand in the market continues to increase. In 2017, the projected need for packaged cooking oil in Indonesia reached 1.1 million tons and bulk cooking oil was 3.5 million tons.
http://industri.kontan.co.id/news/pabrik-minyak-goreng-ptpn-beroperasi-tahun-2019

14

Jun

CPO price is driven by soybean price

Citing Bloomberg, Friday (2/6) at 11.29 AM WIB, the August-2017 CPO contract at the Malaysian Derivative Exchange rose 0.75% to RM 2,532 per metric [...]

CPO price is driven by soybean price. Citing Bloomberg, Friday (2/6) at 11.29 AM WIB, the August-2017 CPO contract at the Malaysian Derivative Exchange rose 0.75% to RM 2,532 per metric ton compared with the day before. However, over the past week the CPO has decreased by 0.9%.
Putu Agus Pransuamitra, Research and Analyst at PT Monex Investindo Futures, explained that higher CPO exports from Malaysia and firmer soybean prices became positive sentiment for the CPO at the end of the week. Intertek Testing Service reported that Malaysian palm oil exports in May climbed 16% to 1.3 million tons compared with the previous month. “This increase became an early indication of potential higher demand during the Ramadan month,” he said.
Meanwhile, soybean prices at the Chicago Board of Trade climbed around 0.48%. “The higher prices for this competitor vegetable oil product tended to raise CPO prices,” added Putu.
However, the stronger Malaysian ringgit dampened the CPO price increase. Putu estimated that the potential trading range for CPO at the Malaysian bourse today will span from RM 2,490 to RM 2,560 per metric ton. Meanwhile at the Indonesian Commodity and Derivative Exchange the potential trading range is Rp 8,740 to Rp 9,230 per kilogram.
http://investasi.kontan.co.id/news/harga-cpo-terkerek-harga-kedelai

PTPN XI Targets Sugar Production of 430 Thousand Tons

14

Jun

PTPN XI Targets Sugar Production of 430 Thousand Tons

According to PTPN XI Director, M Cholidi, the 430 Thousand tons of sugar production resulted from the processing of 5.5 million of canes. Last year, [...]

PTPN XI Targets Sugar Production of 430 Thousand Tons. According to PTPN XI Director, M Cholidi, the 430 Thousand tons of sugar production resulted from the processing of 5.5 million of canes. Last year, PTPN XI was only able to process 5.1 million of canes producing 340 Thousand tons of sugar. “The milling season is still ongoing, we predict that this year, PTPN XI’s sugar production will reach 430 Thousand tons as our productivity increases and our area expands. Last year, our production was only 340 Thousand tons because the season was not optimal,” he said. M Cholidi said this following the signing of the Memorandum of Understanding between PTPN XI and PT Pupuk Kujang in Jakarta, Monday (5/6). The signing of the MoU was carried out by M Cholidi with PT Pupuk Kujang Chief Manager, Nugraha Budi Eka Irianto, witnessed by Nusantara State Plantations Holding Director General, PT Perkebunan Nusantara III (PTPN Holding), Dasuki Amsir. Currently, PTPN XI manages 15 sugar factories (PG). The company, according to Cholidi, has consistently attempted to revitalize and increase its yield through a better extraction process. However, the yield rate is actually more dependent on the plant itself. “There are many factors determining a high yield rate, namely the plant itself. If its cane does not contain much sugar, no matter how good the sugar factory is, the yield will remain the same. We have seen that factories essentially only serve the purpose of extracting its potential. Just because the factory is new doesn’t mean the yield rate will automatically increase,” he explained. Another factor that would increase the yield is the season. The season affects photosynthesis. The ideal condition is a plant that receives long sunlight exposure, at least 10 hours. Then, the day and night temperature should have a significant different. Additional requirements are the appropriate nutrients, choosing the correct harvest time, and right when it reaches its peak ripeness. “Providing the right fertilizer would affect the plant’s homogeneity and homogeneity becomes key in achieving a high yield rate,” said Cholidi. http://www.beritasatu.com/investor/434919-ptpn-xi-bidik-produksi-gula-430-ribu-ton.html

14

Jun

PTPN III Profit Soars 181%

PTPN III Holding Plantation Director, Dasuki Amsir, explained that in the midst of rising commodity prices, up until April 2017, the company had also [...]

PTPN III Profit Soars 181%. PTPN III Holding Plantation Director, Dasuki Amsir, explained that in the midst of rising commodity prices, up until April 2017, the company had also recorded a sales increase of Rp 11.2 trillion or a 35% growth compared to the same period in 2016 at Rp 8.3 trillion. The sales increase was supported by a 19% increase in the plantation's own Crude Palm Oil (CPO) productivity and a 5% increase in dry rubber compared to the same period last year. `So the consolidated net profit of Rp 488 billion was not only a result of the increase in commodity prices, but also from our performance improvement evaluation due to changes in work culture and efficiency in operations both on and off the farm,` Dasuki told the media during the Breaking the Fast event in Jakarta, Monday (6/5). He added that from the operational management improvement side, the company was also able to record a net operating cash flow of Rp 1.5 trillion or an increase of 373% compared to the same period in 2016 at Rp 327 billion. Meanwhile, the company's income margin before tax, interest, depreciation and amortization (EBITDA), which is the fundamental factor of financial performance, has improved and become more stable. This is reflected in the fact that up until April 2017, the Company's EBITDA had increased by 182% or Rp 2.5 trillion compared to the same period in 2016 of Rp 871 billion. Dasuki explained that the improvement in financial performance had also increased, alongside the return of trust from banks. This was also reflected in financial indications which at the beginning of the year had already shown good results. `Programs and the turn around strategy are still being implemented because the impact has been quite visible in the continuously improving financial performance,` he said. Company Focus This year, the Company will focus on increasing productivity and implementing efficiency in order to achieve an efficient and consistent production price so that any decrease in commodity prices will not significantly affect financial performance. Dasuki said that the Plantation Holding must implement efficiency in various lines by paying attention to the company's cost structure. One of the forms of efficiency includes the procurement of fertilizer by the Plantation Holding, which is believed to be able to reduce prices more efficiently and competitively, as well as monitoring fertilizer usage in accordance with requirements. Meanwhile, to increase productivity in running operations, management ensures that management and processes run in accordance with SOPs, starting from planting techniques, maintenance, fertilization, harvesting to transportation to processing plants. `In order to achieve this target, the development of IT support is needed so that data is accurate for monitoring productivity and efficiency and for decision making,` said Dasuki. The Plantation Holding is currently working with PT Telkom Indonesia, Tbk and is pursuing the implementation of Enterprise Resources Planning (ERP) - SAP as part of the implementation of IT in all of the subsidiaries of the Plantation Holding, PT Perkebunan Nusantara III (Persero). Dasuki said that in the near future, his team will create an internal ranking system for subsidiaries. The goal is to have all subsidiaries consisting of PTPN I, II, IV to XIV compete in improving performance and the company's revenue target, and if things run smoothly, a competition with private plantation companies will be held. http://www.neraca.co.id/article/85939/laba-ptpn-iii-melejit-181

Government promotes downstreaming of palm oil

22

May

Government promotes downstreaming of palm oil

Head of the Indonesian Presidential Staff Office, Teten Masduki, said that the government has a strong commitment to the palm oil sector. "We all [...]

Government promotes downstreaming of palm oil. Head of the Indonesian Presidential Staff Office, Teten Masduki, said that the government has a strong commitment to the palm oil sector. `We all know that palm oil has proven to contribute positively to the economy by generating foreign exchange, absorbing employment, and advancing the economy in remote regions,` he said in a press release received by KONTAN during the Celebration of the 2nd Century of the Bogor Botanical Garden in the Bogor Botanical Garden, Thursday (18/5). According to him, during the global economic slowdown, palm oil is a lifesaver for Indonesia. In fact, downstream palm oil processing is not yet optimal because up to now Indonesia still relies on exports in the form of crude palm oil (CPO). Therefore, said Teten, the government asked business actors to immediately carry out downstream palm oil industry. Because with downstream processing, the added value of the palm oil industry will be felt by the Indonesian people. Entrepreneurs will get additional profits, while the government's burden will be reduced because this downstream will absorb a lot of workers. In addition to the commitment to encourage downstreaming of palm oil products, Teten said, the government is also committed to fighting to convince the European Union that oil palm cultivation in Indonesia has been in accordance with the principles required by the laws in force in Indonesia. With this step, it is hoped that the European Parliament, which accuses Indonesian palm oil of being closely related to the issues of human rights violations, corruption, child labor and the elimination of indigenous people's rights, will fade. `I think the resolution of the European parliament is not appropriate. Because the Indonesian government, through the regulations issued, has encouraged oil palm cultivation practices to follow environmental and nature conservation principles,` he said. General Chairman of the Indonesian Palm Oil Association (GAPKI) Joko Supriyono at that event handed over Dura Deli oil palm planting materials to the Head of the Bogor Botanical Garden Plant Conservation Center, Didik Widyatmoko. The seedlings are the result of a selection carried out by the Palm Oil Research Center (PPKS) in a structured manner since the early 1900s. This Dura plant is the parent tree (mother palm) for producing superior oil palm seeds. Currently, the generation of Dura Deli used in the seed production process at PPKS is the sixth generation since 1848. `Genetically, this Dura is a descendant of a Dura tree planted in the Bogor Botanical Garden in 1848,` said Didi Widyatmoko. The history of oil palm in Indonesia began with four seedlings introduced from Bourbon or Mauritius in February 1848 by DT Pryce. While the other two seedlings were introduced from Amsterdam in March 1848. The four oil palm seedlings were then planted in Buitenzorg Botanical Garden (Bogor Botanical Garden) in 1848. Starting from four seedlings planted in the Bogor Botanical Garden, now oil palm has developed into an important industry in Indonesia. The commercial development of oil palm in Indonesia was built in 1911 by M Adrien Hallet, a Belgian citizen in eastern Sumatra, covering Pulu Raja (Asahan) and Sungai Liput (Aceh). http://m.kontan.co.id/news/pemerintah-dorong-hilirisasi-minyak-sawit

Latest News