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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

22

May

RI to Boost Palm Oil Exports to China

The Minister of National Planning and Development (PPN/Bappenas), Bambang Brodjonegoro, said that China is currently implementing the Bio Diesel 5 or [...]

RI to Boost Palm Oil Exports to China. The Minister of National Planning and Development (PPN/Bappenas), Bambang Brodjonegoro, said that China is currently implementing the Bio Diesel 5 or B5.`During a bilateral meeting with the President of China, he (the President of China) stressed that China should increase its imports of CPO, because if I'm not mistaken China has already implemented Bio Diesel 5%, while we're still at 20%. They have just started with 5%, but 5% in China is very significant, and we hope that we can become one of the most significant exporters,` Bambang said to reporters in his office in Jakarta on Wednesday (17/5/2017).In the past, producer countries of CPO have preferred European countries as their export destination. However, the emergence of black campaign issues can be used by Indonesia to divert its CPO exports to China.`That's why we're hoping that now that China has implemented the 5%, it can become a new market for us,` he added.Bambang stated that the black campaign issues concerning CPO from Indonesia by European countries were also due to concerns that CPO would threaten their production of vegetable oil and olives.`I see this as a trade war, as Europe wants to protect its vegetable oil, as they have sunflowers, for example, and olive oil, which probably feel threatened by the presence of palm oil, so the environmental reasons are there, but so to speak that is their justification so that they can disrupt the circulation of palm oil there,` he explained.To date, Indonesia's CPO products already possess the ISPO certification, but the ISPO certification is still in the negotiation stage, since several European countries also have proposed their own certifications.`Yes, as far as I know ISPO was proposed by Indonesia, but there has also been a proposal from Europe which seems to need to be discussed first, so in my opinion the most important thing in this palm oil issue is that producer countries have to be united, so that their voices are united, because the motive is clearly a trade war, with the environmental issues used as a reason, but the main thing is to protect their own productions,` he concluded.

Palm Oil Negotiation with Europe, Italy Supports Indonesia

22

May

Palm Oil Negotiation with Europe, Italy Supports Indonesia

"We are ready to support Indonesia, of course in consideration of our position in the European Union," he said at the Vice President's Office on [...]

Palm Oil Negotiation with Europe, Italy Supports Indonesia. `We are ready to support Indonesia, of course in consideration of our position in the European Union,` he said at the Vice President's Office on Monday (15/5/2017). As is known, the European Parliament passed a resolution summarized in the Report on Palm Oil and Deforestation of Rainforests in early April. The resolution recommends the gradual cessation of imports of palm oil because it is accused of triggering deforestation and other negative impacts on the environment, social affairs and human rights. Calenda understands that the issue of CPO trade is sensitive to Indonesia, which relies on exports of this commodity. `Also for the workers. So we must take this into consideration and we believe this subject should be resolved in the context of the free trade agreement [FTA],` he said. Minister of Trade Enggartiasto Lukita said that the Italian government is ready to communicate Indonesia's position to the European Parliament with one of the considerations of facilitating the negotiation of the Comprehensive Economic Partnership Agreement (CEPA) between Indonesia and the European Union. `They will help to convey this [to the European Union], because it will disrupt the CEPA negotiation between Indonesia and Europe that is in process,` he said. In the meeting, Vice President JK hoped that trade competition would not be continue to be exploited. The Vice President assured the Italian government that Indonesia's commitment to environmental sustainability is very strong. `The Vice President explained that we have a very strong commitment to the environment. There is ISPO (Indonesia Sustainable Palm Oil). And the Italian Minister took note of that,` he said. Despite the disruption by trade issues, Enggar claimed that the number of CPO exports to the European Union actually tends to increase month to month by around 15-20%. `Our exports to Europe and America have increased because they need it. The ones that declined were India and China because they have reserves for other types of oil, but I believe it will not be for long,` he explained. Previously, Indonesia Palm Oil Producers Association (GAPKI) recorded that Indonesia's palm oil exports to Europe increased by 27% or from 352,020 tons in February 2017 to 446,920 thousand tons in March 2017. http://industri.bisnis.com/read/20170515/99/653638/negosiasi-sawit-dengan-eropa-italia-dukung-indonesia

RUBBER PRICES MAY 19: Rubber Turns Higher on US Economic Data, Oil Prices

22

May

RUBBER PRICES MAY 19: Rubber Turns Higher on US Economic Data, Oil Prices

Rubber prices opened down by 0.13% or 0.30 points at 223 yen per kg this morning. At yesterday’s trading (Thursday, 18/5), rubber prices closed [...]

RUBBER PRICES MAY 19: Rubber Turns Higher on US Economic Data, Oil Prices. Rubber prices opened down by 0.13% or 0.30 points at 223 yen per kg this morning.
At yesterday’s trading (Thursday, 18/5), rubber prices closed down by 2.79% or 6.40 points to 223.30, ending a seven-day rally due to a decline in stock and commodity markets that affected the rubber market.
According to Market Risk Advisory partner in Tokyo, Naohiro Niimura, the latest positive economic data from the United States (US) and a tightening of supply supported the strengthening rubber prices this week.
`The Philadelphia index shows that the US economy is likely expanding more strongly than expected.` Niimura said as quoted from Bloomberg.
The Federal Reserve’s Philadelphia Business Outlook Index showed better than expected numbers, putting the market focus back on the US central bank’s anticipated rate hike despite turmoil within President Donald Trump’s administration.
Niimura added that the continuation of the sentiment concerning tight rubber supply and rising crude oil prices also supported the increase in rubber prices.
However, increases in rubber prices were limited as slowing sales of new homes in China raised concerns about demand.
This morning, WTI oil prices were again observed to increase by 0.85% to US$49.77 per barrel at 10.13 WIB, while Brent oil prices rose by 0.74% to US$52.90 per barrel.
On the other hand, the yen exchange rate this morning strengthened by 0.31% or 0.35 points to 111.14 yen per US dollar at 10.14 WIB, after yesterday’s 0.60% drop to 111.49.
http://market.bisnis.com/read/20170519/94/655245/harga-karet-19-mei-data-ekonomi-as-dan-harga-minyak-dorong-karet-berbalik-menguat

PTPN Ready to Play a Role in Agrarian Reform Program

27

Apr

PTPN Ready to Play a Role in Agrarian Reform Program

The Human Resources and General Director of PT Perkebunan Nusantara III (Persero) Seger Budiarjo revealed that to date the government has not [...]

PTPN Ready to Play a Role in Agrarian Reform Program. The Human Resources and General Director of PT Perkebunan Nusantara III (Persero) Seger Budiarjo revealed that to date the government has not consulted with the company over the FELDA concept. Especially since the presidential decree regarding the land reform is still being drafted by the Ministry of Economic Affairs.
However, he assured that PTPN is ready to take a role in the land reform, which is the main program of the Joko Widodo-Jusuf Kalla administration. If given the assignment in the future, Seger hopes that the role and work equipment for the state-owned enterprise (BUMN) are clear.
“In principle, we must support government programs. We will see what will happen to the policy,” he told Bisnis.com, Wednesday, 19 April 2017.
Seger said that a concept similar to FELDA had actually already been implemented in Indonesia in the form of core plantations for transmigration (PIR-trans). However, he acknowledged that the FELDA model was more successful.
Previously, the Agrarian and Spatial Planning Minister Sofyan Djalil had explained the FELDA-style role in the land reform, which includes strengthening the management of farmer cooperatives, mentoring, and funding. The funding could come from state capital investment, BUMN banks, or the company’s own cash. 
In the beginning stages, the largest portion will come from state capital. Over time, state funds will diminish and be replaced by financial institutions and the company’s own cash.
https://m.tempo.co/read/news/2017/04/19/090867691/ptpn-siap-berperan-dalam-program-reforma-agraria

European Palm Oil Resolution Doesn't Affect PTPN III's Export

27

Apr

European Palm Oil Resolution Doesn't Affect PTPN III's Export

PTPN III Human Resources and General Affairs Director Seger Budiarjo said that so far, the crude palm oil (CPO) produced by all the subsidiaries has [...]

European Palm Oil Resolution Doesn't Affect PTPN III's Export. PTPN III Human Resources and General Affairs Director Seger Budiarjo said that so far, the crude palm oil (CPO) produced by all the subsidiaries has been sold to PT Kharisma Pemasaran Bersama Nusantara (KPBN). This trading company then exports the CPO to a number of countries. “So we have not sold directly to Europe. Thus far, from PTPN as a group, the European Parliament's resolution has not had any impact”, he said to Bisnis.com on Wednesday (19/4/2017). Last year, PTPN III produced 2.8 million tons of CPO as a group, or 9% of the national production, of 31 million tons. According to data from the Central Statistics Agency (BPS), in 2015 the state-owned company cultivated 750,160 hectares (ha) of palm oil plantations, or 6.63% of 11.3 million hectares of palm oil plantations in Indonesia. Separately, the General Chairperson of the Indonesian Palm Oil Association (Gapki), Joko Supriyono, believes that the European Parliament's resolution will not impact Indonesian CPO exports in the short term. However, without a proactive stance from the government, it is not impossible that it will impact acceptance of palm oil globally in the medium and long term. “The resolution could act as a precedent for other countries to implement similar policies”, he said at a Hearing Meeting of Commission IV of the House of Representatives (DPR) on Tuesday (18/4/2017). Nevertheless, Deputy Chairperson of Commission IV of the DPR Herman Khaeron still called on the government and business actors to continue monitoring the impact of the European Parliament's resolution on national CPO exports. Exports must not be allowed to decline and upset the national economy, since palm oil supports the livelihoods of millions of workers. According to data from the Palm Oil Fund Management Agency (BPDP-KS), palm oil and its derivatives exported to the three European Union member states of the Netherlands, Italy, and Spain come to 5.1 million tons, or 20% of total exports in 2016. As known, the European Parliament passed a resolution summarized in the Report on Palm Oil and Deforestation of Rainforests on Tuesday (4/4/2017). The resolution recommended a gradual cessation of palm oil imports, because it is blamed for triggering deforestation and other negative environmental, social, and human rights excesses. http://industri.bisnis.com/read/20170419/99/646439/resolusi-sawit-eropa-tak-pengaruhi-ekspor-ptpn-iii

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