Indonesia Must Maintain High CPO Production
INDONESIAN Palm Oil Association (Gapki) suggested that domestic palm oil productivity should be maintained at high level, otherwise Indonesia could lose its share in global CPO market. “If Indonesia cuts down production volume, other country will replace its share in global market,” Gapki’s Chairman Joko Supriyono said in a Focus Group Discussion organized by Investor Daily at Berita Satu Plaza, Jakarta, Wednesday (5/12/2018). He said, increasing productivity is also needed to keep the price from falling.
INDONESIAN Palm Oil Association (Gapki) suggested that domestic palm oil productivity should be maintained at high level, otherwise Indonesia could lose its share in global CPO market.
“If Indonesia cuts down production volume, other country will replace its share in global market,” Gapki’s Chairman Joko Supriyono said in a Focus Group Discussion organized by Investor Daily at Berita Satu Plaza, Jakarta, Wednesday (5/12/2018).
He said, increasing productivity is also needed to keep the price from falling. However, there’s also some other ways to keep price from falling such as controlling cost, controlling suplly and demand, designing regulation to increase competitiveness, strengthening export, and boosting domestic consumption.
In order to maintain export market, Joko said, a part from removing trade barriers it is also important to enlarge market by arranging new free trade agreement, for example with India, Turkey, and Pakistan which are current Indonesian palm oil importers.
Chairman of oil palm farmers association of Sawitku Masa Depanku (Samade) Tolen Ketaren also spoke in the FGD. According to him, the government needs to find solution for smallholders following a drop in price of Fresh Fruit Bunches (FFB).
He said smallholders are experiencing some difficult situations. Such as, a drop in their purchasing power, they can’t afford to buy fertilizer because of high price. “Fertilizer price is increasing while they can’t afford for subsidized fertilizer,” he said.
At the same occasion, researcher from BPPT Agus Kismanto suggested the Indonesian Oil Palm Estate Fund (BPDPKS) to support building new CPO refineries and developing CPO-fueled power plants in order to boost domestic CPO absorption.
He assured that new CPO refineries could increase CPO absorption up to 20 million tons per year or 340 thousand barrel per day. On the other hand, CPO can be used as fuel for power plant so that it is important for BPDPKS to support PLN.
Meanwhile, the House member of Commission XI Jhony G Plate suggested government institutions to lose their sectoral egos in order to strengthen CPO price. He laid stress on the importance of building downstream industry saying that it could increase palm oil domestic consumption. It has to be done as soon as possible due to rising stockpiles. *** (Source: Berita Satu/Nasionalisme).