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PTPN XI Focus on Efficiency & Diversification

24

Mar

PTPN XI Focus on Efficiency & Diversification

PTPN XI President Director Moh Cholidi said that for increasing revenue, there are many things that can be done, especially amidst of declining sugar [...]

PTPN XI Focus on Efficiency & Diversification. PTPN XI President Director Moh Cholidi said that for increasing revenue, there are many things that can be done, especially amidst of declining sugar price. One of them is via operational cost cutting. `There are still costs we paid last year, such as external power, alternative fuel, and electricity cost. We can lower these, there is still a slot although the sugar price has a tendency to decrease,` he said in Surabaya, Monday (3/13). Last year, PTPN XI booked Rp 132 billion profit and this year it is projected to be Rp 86 billion. He explained that this year the company did not set a too high profit target because there are some costs that must be allocated to investment this year. One of them is to increase the capacity of PG Djatiroto and PG Assembagoes sugar factories with a total value of around Rp 1.6 trillion. Other than that, there are still depreciation and bank interest, thus this year's profit projection cannot be set too high. `However, we are striving to surpass that target,` he said. PTPN XI Operational Director Daniyanto said this year the company is targeting sugarcane product diversification other than sugar. This is done as an alternative source of income for the company because the government controls the price of sugar and on the other hand the cost of production increases alongside labor wages and sugarcane raw material. Some of the sugarcane derivatives that will be produced are fermented pellet bagasse or fermented sugarcane pulp, and bio fertilizer. `We are also increasing the variant of sugar production, such as brown sugar, as well as utilizing our assets, which is constructing housing or apartment in our area,` he said. In order to increase production yield, PTPN XI is planning to expand the right to manage (HGU) area by 1,000 hectares every year. The targeted area includes Jember, Bondowoso, and Situbondo with potential HGU area of 3,000 hectares to 4,000 hectares. On the other hand, former PTPN XI President Director, Dolly Parlagutan Pulungan, who recently has just been replaced, hopes that the new management team has a right strategy in facing various challenges, such as economic condition, weather, and limited sugar price. He thinks that PTPN XI has good potential this year, especially since the old management has prepared a strong funding and equity. `I prepared Rp 500 billion for land acquisition and around Rp 2.4 trillion for company development of production capacity, in which Rp 650 billion comes from state capital participation and the rest from us,` he said. The financing source for this year's expansion also comes from banking, which is from BRI and BNI with a loan value of Rp 1.8 trillion. Throughout last year, PTPN XI's total sugar production reached 142,000 tons, with the highest yield from PG Assembagoes, which is 7.08%. This year, the total sugar production target is 187,000 tons with a sugarcane yield that can reach 8.04%. http://industri.bisnis.com/read/20170314/99/636978/ptpn-xi-fokus-efisiensi-diversifikasi

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

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