Latest News: Page 52

CPO & rubber predicted to be drivers of exports in 2017

18

Feb

CPO & rubber predicted to be drivers of exports in 2017

The Deputy for Distribution and Service Statistics, Central Statistics Agency (BPS), Sasmito Hadi Wibowo, said the export potential in 2017 is in [...]

CPO & rubber predicted to be drivers of exports in 2017. The Deputy for Distribution and Service Statistics, Central Statistics Agency (BPS), Sasmito Hadi Wibowo, said the export potential in 2017 is in commodities, specifically crude palm oil (CPO) and its derivatives. `I think the potential lies in commodities, CPO, and if possible, its derivatives. About a third of our exports are in the form of cooking oil, actually made from palm oil. Palm oil, however, has hundreds of derivatives,` Sasmito said at the BPS building, Thursday (16/2). According to Sasmito, if Indonesia can develop exports of other derivatives, the export prospect this year will be even better. `For example, cosmetics, chemical products, if that can be done, it would increase the added value,` he said. Furthermore, a commodity that can boost export potential this year is rubber. According to Sasmito, rubber and its derivatives have already been quite developed. Therefore, the growth in the number of vehicles in various countries can become a good export market share for Indonesia. `Although there is synthetic rubber, which depends on BBM prices. If BBM goes up, the price of synthetic rubber will become more expensive. BBM is likely to increase in the future, so the opportunity for rubber is also good,` he said. Later, Sasmito said that manufactured products can also boost exports in 2017. `Including tires as a derivative of rubber. Also printer products. There is a popular printer brand that is manufactured here, so we also export a lot,` he explained. Meanwhile, he said that Indonesia cannot expect much from the oil and gas sector because oil exports are still negative. `(Oil and gas) is rather difficult, but we must maintain our gas exports,` he said. He also said that coal commodities are less likely to support exports this year because they cannot be reprocessed in Indonesia. `We cannot do anything with coal, just keep digging and shipping it,` he said. Sasmito added that, with current commodity prices in recovery, Indonesia need not worry about US president number 45 Donald Trump's policy. However, he said that commodity price trends will still fluctuate. `If the supply in the destination country is high, demand will be lower and prices will fall. But if they are lacking, prices will go up,` he said. http://nasional.kontan.co.id/news/cpo-karet-diprediksi-jadi-mesin-ekspor-2017

North Sumatra Prepares an Oil Palm-Corn Cropping System Pattern

18

Feb

North Sumatra Prepares an Oil Palm-Corn Cropping System Pattern

North Sumatra notes the potential of 48 thousand hectares of plantation land to be planted with corn in alternating planting pattern. The potential [...]

North Sumatra Prepares an Oil Palm-Corn Cropping System Pattern. North Sumatra notes the potential of 48 thousand hectares of plantation land to be planted with corn in alternating planting pattern. The potential land is spread over 17 regencies. Director of the Perennial and Refreshment Crops of the Plantation Directorate General of the Ministry of Agriculture and also as the Person-in-Charge of the Special Effort of Pajale (Rice, Corn, and Soybean) of North Sumatra, Ali Jamil, said that up until mid-February, 9,000 hectares of plantation land has been integrated with corn plants. The land consists of plantation land owned by the people, the private sector, and the state. From the total of 9,000 hectares of plantation land, 200 hectares are owned by PTPN II as oil palm plantations. The first corn planting using the alternating planting system was done together with the Army Chief of Staff and the Minister of Agriculture in the oil palm area of PTPN II of the province of North Sumatra, Kodam I/BB in the Village of Tanjung Jati, in Langkat Regency. Ali said the potential of the land was included in the category of Plants that have not yet Produced (TBM), so it needs to be integrated with corn plants to give added value. With a three-month planting period, 1 hectare of land can produce 8 tons of corn. Thus, the potential of 48 thousand hectares can produce 384 thousand tons of corn in a single planting period. Technically-speaking, the integration pattern for oil palm - corn can be implemented from the initial phase of the oil plant's growth to the maximum shading limit of 70 percent or when the oil palm is more or less four years old. In addition to oil palm plantations, corn plants can be integrated with alternating planting patterns on rubber, coconut, and cashew plantations. The alternating planting pattern is deemed to be able to help increase the income of farmers since farmers will earn additional income from the alternating planting before the main crop produces. `We are encouraging private and government companies to use TBM land to support the government's program, in addition to making the company profitable. Right now, we are continuing to talk to GAPKI (the Indonesian Palm Oil Business Association),` he added. The Food Crop and Horticulture Service of North Sumatra has outlined a target to pursue the increase of the corn production target to 1.9 tons throughout this year, up from 1.6 million tons last year. The corn planting plan for October 2016 - September 2017 has a target of 292,729 hectares. In addition, the harvest target for January - December this year is at 302,922 hectares. Meanwhile, corn productivity is targeted to increase to be 6.3 tons per hectare. If this production can be achieved, North Sumatra will have a surplus of 888,292 tons of corn. Increasing the land area by utilizing the idle land owned by PTPN. Moreover, the Governor of North Sumatra, Tengku Erry Nuradi, said that there is a lot of empty land in North Sumatra that has not yet been utilized for seasonal crops or seasonal fisheries. With a three-month growing period, this integration can give added value to the farmers. `Thus, we hope the target for North Sumatra to become the country's food barn can be realized,` he said after the first planting in the Village of Tanjung Jati, Langkat Regency.
https://bisnis.tempo.co/read/news/2017/02/14/090846155/sumatera-utara-siapkan-pola-tumpang-sari-sawit-jagung

Rubber Exports Predicted to Increase to 3.2 Million Tons

18

Feb

Rubber Exports Predicted to Increase to 3.2 Million Tons

"Exports could not be boosted because our rubber trees are old," he said, when contacted by Republika, Wednesday (February 8). According to him, the [...]

Rubber Exports Predicted to Increase to 3.2 Million Tons. `Exports could not be boosted because our rubber trees are old,` he said, when contacted by Republika, Wednesday (February 8). According to him, the average age of productive rubber trees in Indonesia is more than 25 years. Therefore, Azis hopes the government may provide assistance in the form of seeds subsidizes so that farmers could start replanting rubber trees. As for the price of rubber, Azis said that currently the commodity is being priced at 2.8-3 USD per kilogram. Meanwhile, the price at the farmer level could reach IDR 12 thousand to IDR 15 thousand per kilogram.
The figure is quite better than the previous years, when the price of rubber had sharply plunged to below one USD per kilogram. He estimated that the increase in price was due to decreased production of rubber in Thailand and Vietnam because of weather factors.Azis is optimistic that the favorable condition would sustain, on the condition that the world economy improves. This is because, if the economy grows, the demand for vehicles will increase. Rubber is the main raw material for tire industry.
He said that 82 percent of the world's rubber production is absorbed by the tire industry. `If the economic growth improves, the natural rubber will find its market.`
http://www.republika.co.id/berita/ekonomi/korporasi/17/02/08/ol25ay415-ekspor-karet-diprediksi-naik-jadi-32-juta-ton

Indonesia's certified palm oil market dominance

31

Jan

Indonesia's certified palm oil market dominance

“Globally, sustainable palm oil production that has been certified by RSPO has reached 12.15 million tons or approximately 17% of the [...]

Indonesia's certified palm oil market dominance. “Globally, sustainable palm oil production that has been certified by RSPO has reached 12.15 million tons or approximately 17% of the world’s total palm oil production,” explained Tiur Rumondang, Director of the Roundtable on Sustainable Palm Oil (RSPO) Indonesia.
Up to 2016, there was approximately 1.8 million hectares (ha) of palm oil plantation that was RSPO-certified. Tiur stated that this number is still relatively small, namely around 12% of the total palm oil plantation area in Indonesia.
Based on data from the Ministry of Agriculture, the total palm oil plantation area in Indonesia has reached 10.8 million ha. Meanwhile, the palm oil factories that have acquired RSPO certification number around 174 factories from 37 member company groups of RSPO operating in Indonesia.
Tiur mentioned, the awareness to obtain RSPO certification in Indonesia is showing a positive growth trend. This can be seen from the increasing number of certified and sustainable palm oil plantations, compared to 2015 which only reached 1.46 million ha.
The productivity of certified palm oil plantations is also claimed to have increased. If usually one hectare produces 4 tons per year, it can now reach 5 tons per hectare per year.
“We also do not know for sure whether the increase in productivity is supported by good and proper seeds and management. What is certain is that certified palm oil plantations have economic advantages,” added Tiur.
He said, there are many benefits of implementing sustainable RSPO certification. Some of the benefits include being able to compete at international level, and higher market acceptance, especially for product users in the European Union.
RSPO has a target of achieving 50% market absorption of Certified Sustainable Palm Oil (CSPO) in Indonesia up to 2020. Tiur said that achieving this target would not be easy, they need to work extra hard to convince business actors and plantation owners.
“Our biggest challenge is the operational culture of plantation companies. For decades, they have operated without anyone monitoring them, but as soon as they join RSPO, there is someone monitoring them,” he said.
The challenge to build awareness for certification is most difficult in medium- and small-scale palm oil companies. Their target market is the domestic market which does not require special certification, so they believe that they do not need CSPO.
There are eight main principles that must be fulfilled by a palm oil company in order to obtain RSPO certification. When expanded, there are 143 specific criteria that must be fulfilled. RSPO sustainable certification is valid for five years, and there is a separate audit every year.
http://industri.kontan.co.id/news/indonesia-dominasi-pasar-cpo-bersertifikat

Indonesia to set February crude palm oil export tax at $18 per tonne

31

Jan

Indonesia to set February crude palm oil export tax at $18 per tonne

The government's price reference is set at $815.52 per tonne for next month. An export tax of $18 per tonne is applied whenever the export price is [...]

Indonesia to set February crude palm oil export tax at $18 per tonne. The government's price reference is set at $815.52 per tonne for next month. An export tax of $18 per tonne is applied whenever the export price is between $800 and $850 per tonne.
The rising export tax may encourage planters to sell more of their products to domestic buyers, according to Indonesian Palm Oil Association (GAPKI).
`If the export tax is too high, maybe it won't be attractive for exports. Domestic consumption could be larger for biodiesel,` said Fadhil Hasan, executive director of GAPKI.
Sahat Sinaga, executive director of the Vegetable Oil Industry Association, said imposing an $18 tax on top of a $50 per ton levy, will hurt competitiveness.
`It is like telling (companies) not to export,` Sinaga said.
Any sign that exports from the world's largest palm oil producer are being reduced by the tax increase would support Malaysian benchmark palm oil futures.
On Friday, palm oil contracts for April on the Bursa Malaysia Derivatives Exchange were trading around 3,060 ringgit ($691) a tonne, down less than 1 percent.
The export tax for cocoa beans will be kept unchanged in February at 5 percent.
http://www.reuters.com/article/us-indonesia-palmoil-exports-idUSKBN15B0AR

Elia Massa Manik: Bringing the State-Owned Plantation Holding Company to Become a World Class Company

31

Jan

Elia Massa Manik: Bringing the State-Owned Plantation Holding Company to Become a World Class Company

“Last year, our revenue was approximately Rp37 trillion. But we had a loss reaching Rp615 billion,” said Elia Massa Manik. After reviewing the [...]

Elia Massa Manik: Bringing the State-Owned Plantation Holding Company to Become a World Class Company. “Last year, our revenue was approximately Rp37 trillion. But we had a loss reaching Rp615 billion,” said Elia Massa Manik. After reviewing the performances of PTPN I through PTPN XIV, said Elia Massa, it was decided at the Shareholder Meeting to proceed with the restructuring. The main goal was to achieve efficiency and effectiveness in every aspect. Restructuring is not just about finances. The holding company is paying Rp12.5 billion each day in interest alone. “That is why improving PTPN is now our common duty. Ultimately, if PTPN is healthy and our plantations are thriving, we will be more prosperous,” he explained. Under the leadership of Elia Massa Manik, the number of PTPN directors have been reduced to a maximum of three. In the past, a single PTPN could have four to five directors. Elia cited the example of private national plantations where the number of directors is limited to two. “Meanwhile, PTPNs can have up to five directors. I would rather focus on improving productivity, then deal with the number of people. The new directors were selected internally, so we picked the best,” he explained. “We have to change at the top management level. A leader becomes a role model. If we can improve the role model, then the acceleration and improvement process will proceed much more quickly,” he explained. So, what is Elia’s strategy to transform the state-owned plantation holding company into a world-class company? The following is an excerpt from an interview by the editorial team of Majalah SAWIT INDONESIA following the changes in the board of directors at PTPN I through XIV in Jakarta, in mid-July: “In your view, what are the key improvements that you will prioritize to improve the performance of this state-owned plantation company?” Currently, our average production costs are around 35 percent higher than those of private companies. This needs to be addressed. The high production costs are caused by the relatively low productivity. In my opinion, the way to manage costs is pretty much the same everywhere. These are the areas that we are focused on. The improvement process begins by improving the people structure in general. At private national companies, the number of directors normally does not exceed two to manage a plantation. However, we’ve had as many as five directors on the boards of our PTPNs. Consequently, we have rationalized the management structure. I would rather focus on improving productivity than reducing the number of people. That’s why the changes are starting at the top management level. Ultimately, the leader becomes a role model. By improving the role models, I am confident that the acceleration and improvement process will proceed much more quickly. At the same time, we can build a better system. Consequently, we are accelerating the integration of our systems, so that they will eventually be managed with an integrated system. Telkom will be responsible for this process. The contract has already been signed and we are expecting the systems to be fully integrated within a year. That will allow Mr. Wahyu (editor’s note: Deputy Minister of State-Owned Enterprises) to monitor them. Of the 14 PTPNs, only one, PTPN X, currently has an effective SAP system implementation. Later on, we will build the system up from the ground up. That way, each manager will be responsible for the profit and loss of their plantation. We will also be making changes to our system. “What targets did the Minister of State-Owned Enterprises set for you before you took charge as President Director of PTPN 3 Holding?” The target was to make it healthy. “How do you intend to make PTPN healthier?” To improve the agro industry, we need to implement a three-pronged approach, namely upstream, midstream, and downstream. The upstream sector needs to be more efficient. To make downstream operations (downstream) successful, we need an efficient upstream. This is a challenge in managing an agro holding company. If we can’t improve efficiency, then forget about downstream activities. They will fail. Currently, 95 percent of our PTPN operations are upstream, and palm oil is our mainstay. That’s why we need to expand and boost capacity. “Is it possible to improve productivity as quickly as possible?” Productivity can be improved within three years. In the case of oil palm, productivity is determined by the variety and the density of the palm trees. For example, if our plantation has 120 trees per hectare and another company has 130 trees per hectare, productivity will naturally be different. We also need a consistent replanting program for various age groups. I have only been in my position for three months and the government has a program to boost the productivity of sugar cane farmers. Over the last five years, the amount of land planted by farmers with sugar cane has declined by 5%, leading to a drop in production. We need to encourage productivity, and PTPN needs to increase its cane land. If we want to achieve self-sufficiency and price stability, we need to do that. Cocoa is another example. We used to have 20,000 hectares of PTPN cocoa plantations. Today we only have 3,000 hectares. The price may not have been good at the time and there were also pest attacks. That’s why we need to develop better planting strategies. We can’t go around converting crops willy-nilly. Although the price of cacao has been good in the last five years, we have been converting our crops, and this is a lesson that we need to learn. https://sawitindonesia.com/rubrikasi-majalah/sosok/elia-massa-manik-membawa-holding-bumn-perkebunan-menjadi-world-class-company/

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