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Below Standard, SOEs Reprocess Sugar Production Results

05

Sep

Below Standard, SOEs Reprocess Sugar Production Results

Deputy for Agro and Pharmaceutical Industry of the Ministry of State-Owned Enterprises, Wahyu Kuncoro, admitted that this was the only way to improve [...]

Below Standard, SOEs Reprocess Sugar Production Results. Deputy for Agro and Pharmaceutical Industry of the Ministry of State-Owned Enterprises, Wahyu Kuncoro, admitted that this was the only way to improve production quality, especially the whiteness level of the sugar.
`So, this is indeed the only way, it cannot be sold. So, it is included in the final grinding process, during washing,` Wahyu asserted to journalists at the Ministry of State-Owned Enterprises, Monday (4/9/2017).
He admitted that the rewashing process requires additional cost and the sugar that is reprocessed will be reduced. This will be calculated by the state-owned enterprise as part of the losses.
In the sealing process of the 18 sugar warehouses owned by PT Perkebunan Nusantara X (Persero) and PT Rajawali Nusantara Indonesia (Persero), samples were taken from at least 42 thousand tons of sugar in total.
`So, if it is reprocessed, there will definitely be a reduction,` Wahyu said.
Wahyu added that this incident is expected to be a material for evaluation for all state-owned enterprises engaged in sugar production business. Even though national sugar production has yet to be sufficient to fulfill public needs, sugar quality should not decline.
`Perhaps, this quality issue has not been a matter of concern so far because we are actually experiencing deficit, so all production sold. Now, I don't know why, the market is unable to absorb, the quality issue has become important,` he said.
 
Source: http://bisnis.liputan6.com

Crude Palm Oil Production Reached 36 Million Tons This Year

04

Sep

Crude Palm Oil Production Reached 36 Million Tons This Year

Derom Bangun, Chairman of the Indonesian Palm Oil Council (DMSI), estimated that national production of crude palm oil in July 2017 would reach 3.40 [...]

Crude Palm Oil Production Reached 36 Million Tons This Year. Derom Bangun, Chairman of the Indonesian Palm Oil Council (DMSI), estimated that national production of crude palm oil in July 2017 would reach 3.40 million tons. In that case, Indonesia's total production of palm oil from January to July 2017 could reach 21.55 million tons. `With the current good weather, production from January to December 2017 could reach 36 million tons, whereas the initial projection was 35 million tons,` Derom said in Jakarta on Sunday (3/9).
 
Derom also said that the positive production growth was supported by the fast increase in the productivity of young plants, and IMT (immature plants) becoming TM (producing plants) with a contribution exceeding the initial estimation.
 
Previously, The Indonesian Palm Oil Association (Gapki) stated that national palm oil export from January to June 2017 had reached 16.60 million tons, a 32.80% increase from the same period last year, which only reached 12.50 million tons. The increase was triggered by the surge in demand for palm oil from major export-destination countries, i.e., India, China, European Union (EU), and United States of America, as well as from Africa and Bangladesh.
 
The exports include crude palm oil (CPO) and palm kernel oil (PKO) with their derivatives, including oleochemicals and biodiesel. Meanwhile, production from January to June 2017 reached 18.15 million tons, while the same period in 2016 only reached 15.30 million tons. These data included the calculations from various palm oil associations, including DMSI.
 
According to Derom, palm oil production in July 2017 was believed to reach 3.40 million tons, export around 2.10 million tons, domestic consumption 800 thousand tons, and stock around 2.30 million tons. For August and September, DMSI estimated the production to be 3.50 million and 3.80 million tons each. `From January to July 2015 production was 18.50 million tons, while from January to July 2017, it reached 21.55 million tons. In October, production is estimated to decrease to 3.50 million tons, and in November to December 2017, it is expected to decrease even more,` Derom said.
 
However, plantations that have conducted fruit stock census on trees could yield a more accurate estimation. `But since there is none,

Palm Oil Contributes IDR 239 Trillion of Foreign Exchange to Indonesia

30

Aug

Palm Oil Contributes IDR 239 Trillion of Foreign Exchange to Indonesia

In one of its attempts, the General Directorate of Plantations organized an ISPO certificate handover and an ISPO empowerment workshop at the [...]

Palm Oil Contributes IDR 239 Trillion of Foreign Exchange to Indonesia. In one of its attempts, the General Directorate of Plantations organized an ISPO certificate handover and an ISPO empowerment workshop at the Headquarters Auditorium of the Ministry of Agriculture, Jakarta, Tuesday (8/29/2017).
 
“Out of 11.9 million hectares of oil palm plantations in Indonesia, only 16.7 percent have been ISPO-certified. Our achievement is only 14 percent for ISPO. After today's certification handover, it will be 16.7 percent. The fault does not lie with the secretariat, but because there are many requirements that must be fulfilled. Our target is that all of them must be ISPO-certified. If they are [already] ISPO-certified, I don't think anyone would say that our palm oil is bad. The foreign market would also appreciate our palm oil products,” said Director General for Plantations at the Ministry of Agriculture, Bambang.
 
Bambang said that this activity is intended to increase the commitment of all palm oil stakeholders in supporting the ISPO certification program and strengthening the development of sustainable palm oil. This will make ISPO more acceptable domestically and in the international market.
 
ISPO certification must be implemented in order for Indonesian palm oil to be accepted and have a strong bargaining position in the export market, and in order for Indonesian palm oil plantations to be managed sustainably.
 
According to him, implementation of ISPO was also a step taken by Indonesia to counter negative accusations aimed at Indonesian palm oil. The accusations ranged from deforestation to human rights violations.
 
“Therefore, I urge all business actors and the ISPO Secretariat to continue making improvements so that ISPO certification can be accelerated. As part of our effort to accelerate, we will continue to be open to companies that want to contribute to the certification discourse,” he stated assertively.

Great! Indonesia-Malaysia Ready to Export Palm Oil to China

29

Aug

Great! Indonesia-Malaysia Ready to Export Palm Oil to China

“We agreed to collaborate to encourage China to use B5, which will in turn reduce trade deficit with Indonesia and Malaysia and [...]

Great! Indonesia-Malaysia Ready to Export Palm Oil to China. “We agreed to collaborate to encourage China to use B5, which will in turn reduce trade deficit with Indonesia and Malaysia and support environmentally friendly energy,” said Indonesia's Ministry of Industry Airlangga Hartarto after attending a meeting with Malaysia's Minister of Plantation Industries and Commodities, Datuk Seri Mah Siew Keong, in Putrajaya, Malaysia.
 
The Minister of Industry expects that China's use of biodiesel will be a potential market for increasing Indonesian palm oil exports. It could even become an opportunity for national industry players to invest in building biodiesel factories. “Palm oil is one of Indonesia's and Malaysia's strategic commodities. The success or failure of this commodity rests in the hands of both countries as suppliers of 90 percent of CPO to the global market,” he said.
 
Therefore, the Indonesian Ministry of Industry focuses on encouraging the development of the domestic CPO industry through downstream processing, which will increase high added value. “Indonesia produced around 35 million tons of CPO in 2016. Development of the downstream industry in palm oil processing includes products such as palm oil cooking oil, oleofood, oleochemicals, and even biofuel,” explained Airlangga.
 
In 2016, the national production capacity for cooking oil reached 45 million tons per year, oleofood 2.5 million tons per year, oleochemicals 3.5 million tons per year, and biodiesel 10.75 million tons per year. Meanwhile, exports of CPO and its derivative products reached USD4.1 million from January to February 2017, an increase of 63 percent compared to the same period in 2016.
 
Airlangga continued by saying that in the bilateral meeting, both parties also agreed to strengthen the institutional framework for the Council of Palm Oil Producing Countries (CPOPC). “We encourage this institution to leverage added value or downstream industries in the CPO industry,” he said.
 
The CPOPC will invite seven other countries to join as CPO producers: Thailand, Colombia, Nigeria, Papua New Guinea, Ivory Coast, Honduras, and Guatemala. “We also invited them to attend the FGD, which will be held soon in Bali,” Airlangga added. The inclusion of those countries is expected to have a positive impact on the global CPO commodity.

In the First Semester, Palm Oil Exports to the European Union Grew by 42%

29

Aug

In the First Semester, Palm Oil Exports to the European Union Grew by 42%

"The increase is quite significant, considering Europe is implementing trade barriers by issuing the European Parliament's resolution last March," [...]

In the First Semester, Palm Oil Exports to the European Union Grew by 42%. `The increase is quite significant, considering Europe is implementing trade barriers by issuing the European Parliament's resolution last March,` said Gapki Executive Director Fadhil Hasan in a written statement. In addition to Europe, Gapki recorded that the export performance in semester I/2017 generally grew positively. The national palm oil export volume in semester I/2017 reached 16.6 million tons or increased by 25% compared to the same period last year by 12.5 million tons. The exports to primary destination countries also grew positively except for Pakistan. Exports in semester I to Pakistan were recorded to go down by 5% compared to the same period in 2016 from 1.1 million tons in 2016 to 1.05 million tons this year. However, the export volume of Indonesian palm oil to India in semester I/2017 grew quite significantly, which increased by 43% compared to the same period last year from 2.6 million tons to 3.8 million tons. The export increase also occurred in the African countries market by 36.5%, Bangladesh by 29%, the United States by 27%, and China by 18%. In another part, the Minister of Industry (Menperin) Airlangga Hartarto said that Indonesia and Malaysia are ready to synergize in fulfilling palm oil needs to support the Chinese Government's policy in implementing a biodiesel program by mixing 5% with solar or B5. `We agreed to jointly encourage China to use B5 in order to reduce the trade deficit with Indonesia and Malaysia at the same time as being an environmentally friendly energy,` said Airlangga last week. (rzk) Source: economy.okezone.com ------------------------------------- Tuesday, August 29, 2017  JAKARTA – The palm oil industry still faces the challenge of an overabundance of other plant products which disrupts the price quite a lot. Based on data presented by the Indonesian Palm Oil Association (Gapki), the export volume of Indonesian palm oil (CPO and PKO (palm kernel oil) and its derivatives, including oleochemicals and biodiesel, reached 16.6 million tons. This performance increased by 25 percent if compared to the same period last year which only reached 12.5 million tons. Meanwhile, Indonesian palm oil production in the first half of 2017 has reached 18.15 million tons. This number shows a growth of 18.6 percent compared to last year's production in the same period which was 15.30 million tons. Production in the first half of 2017 was still influenced by last year's El Nino (an increase in ocean surface temperature that caused weather anomaly) so it was not optimal. Throughout the first half of 2017, the CPO price moved in the range of USD 650–USD 827.50 per metric ton. The price in January was quite promising with an average of USD 805.7 per metric ton. `From this, the impact of the economic downturn can be seen. The price continued to decline along with the sluggish global economy which resulted in sluggish demand and an overabundance of other plant oil production which caused the price to become cheaper,'' said Gapki Executive Director Fadhil Hasan. Last weekend, the Indonesian government stated that it will synergize with Malaysia to fill the CPO supply to China. `We agreed to jointly encourage China to use B5 in order to reduce the trade deficit with Indonesia and Malaysia at the same time as being an environmentally friendly energy,'' explained the Minister of Industry Airlangga Hartarto who previously met with the Malaysian Minister of Plantation and Commodity Industries Datuk Seri Mah Siew Keong. The export plan received a positive response from Gapki. `China's potential is still very large. It's an opportunity for us. The largest markets for Indonesian CPO are India, the European Union, China, and Pakistan,'' said Gapki spokesman Tofan Mahdi with conviction. During the first half of 2017, Indonesia's palm oil export performance to primary destination countries also grew positively, except for Pakistan. Exports in the first half to Pakistan decreased by five percent compared to the same period last year or from 1.1 million tons in the first half of 2016 down to 1.05 million tons in the same period this year. The Middle Eastern countries also experienced a decline, recording 12 percent. `The sluggishness of the global palm oil market is influenced by the overabundance of other plant oil production such as soybeans and rapeseed,'' added Tofan. The overabundance of production caused the price of soybeans and rapeseed to fall so palm oil which is not the main vegetable oil in Europe, the Americas, and China is ranked even lower. On the other side, Indonesian palm oil production in June is still stagnant and tends to slightly decline. Production in June was only able to reach 3.327 million tons or around three thousand tons compared to production last May which reached 3.33 million tons. Source: www.jpnn.com

Demo held in Jakarta, Sugarcane Farmers Ask for Sugar Price of IDR 11,000/kg

28

Aug

Demo held in Jakarta, Sugarcane Farmers Ask for Sugar Price of IDR 11,000/kg

The CEO of the Indonesian People's Sugarcane Farmers Association (APTRI), Soemitro Samadikoen, revealed that the price of sugar in the auction is [...]

Demo held in Jakarta, Sugarcane Farmers Ask for Sugar Price of IDR 11,000/kg. The CEO of the Indonesian People's Sugarcane Farmers Association (APTRI), Soemitro Samadikoen, revealed that the price of sugar in the auction is currently set at Rp 9,700/kg. According to him, that price is far from the basic production cost for farmers, which is around Rp 10,600/kg.   `We want the purchase price of sugar from farmers to not be Rp 9,700/kg, because we'll lose money at that price, it's below the production cost of Rp 10,600/kg. Ideally, farmers won't lose money at prices of Rp 11,000/kg. The government can sell according to the maximum retail price (HET) of Rp 12,500, which would give us a margin of Rp 1,500/kg,` Soemitro said when met at Monas on Monday (8/28/2017).   He went on to say that even if the price of sugar increased to Rp 14,000/kg, consumers would not be too affected. Since the consumption of sugar is not as high as other basic food products, the per capita consumption is relatively low. But according to him, improved sugar prices would greatly help the farmers.    `Let's say a family of 5, which would use up around 4 kg of sugar in a month. If the price of sugar increased by Rp 2,000/kg, a family would only have to pay an extra Rp 8,000 per month. That's an insignificant expense over the course of a month compared to the cost of parking. And it would really help the farmers. Two years ago, the price of sugar was Rp 18,000/kg and no one complained, because it was still reasonable. But everyone complains when the price of chili peppers increases,` he said.   According to him, the farmers' sugar is not selling because of the low price. On the other hand, imported refined sugar continues to trickle into the market, which is further depressing sugar prices.   `Our sugar still isn't selling. That's sugar that came out of sugar factories in June, and it still hasn't sold two months later because the highest bid we've gotten is only Rp 9,700/kg. There's a ton of refined sugar in the market, and if that's allowed to continue, sugarcane farmers will be reluctant to plant anymore, and in the long run we'll become even more dependent on imports,` Soemitro said.   He said that the demonstration was carried out by thousands of farmers who had grown tired of the current conditions. Coming in by bus, the sugarcane farmers were from various regions in East Java, West Java, and Central Java.   Source: Finance.detik.com

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