Jakarta Globe

22 May, 2011

Although it continues to fluctuate, the average price of palm oil this year will remain higher than last year as it moves toward $900 per metric ton, an industry association says.

Derom Bangun, vice chairman of the Indonesian Palm Oil Board (DMSI), said here on Saturday that “the price is calculated on market demand, which remains high.”

The average price of CPO last year was $480 per metric ton.

Derom said Indonesia was expected to produce between 22.5 million and 22.8 million metric tons of palm oil this year, up slightly from last year’s production of 21.3 million metric tons. Read the rest of this entry »

Bookmark to

The Jakarta Globe

8 May, 2011

Indonesian palm oil producers hope the Asean-European Union Business Summit leads to a breakthrough in exports of crude palm oil to Europe, which fell sharply after more stringent environmental regulations were put in place last year.

Derom Bangun, vice chairman of the Indonesian Palm Oil Board (DMSI), told the Jakarta Globe on Sunday that exports to EU countries fell after it instituted carbon footprint and conservation requirements for companies exporting palm oil to its member nations.

Indonesia’s exports to Europe in 2010 were just 15 percent of its 15.6 million tons of overall CPO shipments, down from 20 percent in 2008. Read the rest of this entry »

Bookmark to

Reuters

4 May, 2011

Astra Agro Lestari produced 275,100 tonnes of crude palm oil (CPO) during the first quarter, up 25.7 percent versus the same period last year, Indonesia’s largest listed plantation firm said on Wednesday.

The firm had a total of 263,608 hectares of palm oil plantations by the end of the first quarter, it said in a statement to Indonesia’s Stock Exchange

The company, which is controlled by the country’s biggest automotive distributor Astra International , produced 1.02 million tonnes of fresh fruit bunches or a 20.6 percent increased from the first quarter in 2010, the statement added. Read the rest of this entry »

Bookmark to

The Jakarta Post

8 April, 2011

The World Bank’s (WB) recent decision to lift an 18-month moratorium on lending for new palm oil investments indicated a change in the poverty-fighting institution’s perception of palm oil plantations, often accused of causing environmental problems, local palm oil producers said.

Fadhil Hasan, of the association of the Indonesian Palm Oil Producers (Gapki), said in Jakarta that the bank’s new lending policy should help change people’s misconception of the activities of palm oil producers.

“The new lending policy represents a correction in the World Bank’s view about the palm oil industry. This is an important signal for other financial institutions,” Fadhil told The Jakarta Post.

Fadhil added, however, that the Indonesian palm oil industry might not see a significant benefit from the new lending policy because the industry had already received financial aid from the government as part of the revitalization program of the sector. Read the rest of this entry »

Bookmark to

Bernama,

31 March, 2011

Indonesia is seeking to reduce exports of palm oil in crude form now still reaching 65 percent of total exports, Antara news agency reported.

“We are targeting to reduce in stages crude palm oil exports now at 60 to 65 percent to 40 percent,” Coordinating Minister for Economic Affairs Hatta Rajasa said at the opening of a palm oil downstream industry in Bekasi, West Java, on Wednesday.

He said he hoped later around 60 percent of palm oil exports would be in the form of processed products or derivatives.

He said unlike China, Indonesia has competitive superiority in the field of agriculture, such as in the oil palm plantation which is only fit to be done in tropical countries like Indonesia.

“China cannot develop oil palm plantations,” he said.

Industry Minister MS Hidayat meanwhile said Indonesia’s downstream palm oil production in 2010 was recorded at around 22 million tonnes and was expected to reach 43 million tonnes within ten years.

He admitted 65 percent of exports was still in crude form and therefore in ten years it was hoped the figure would change so that the country’s palm oil industries could enjoy more added value.

“A lot or tens of derivatives may be produced from palm oil,” he said.

He said he had already discussed the issue with various parties and businessmen had also agreed to shift towards the direction in stages.

He said among the challenges being faced was time to be needed to make a palm oil derivative product to be well known at home as well as abroad.

Bookmark to

Reuters

29 March, 2011

Palm oil giant Sinar Mas Agro Resources and Technology (SMART) and affiliated companies plan to invest up to 9 trillion rupiah ($1 billion) until 2015 in downstream business, the firm said in a statement on Wednesday. This includes a 2.3 trillion rupiah to build a palm-based refinery plant in Marunda, West Java, with total annual processing capacity of 300,000 tonnes of crude palm oil.

Bookmark to

Adianto P. Simamora

The Jakarta Post

26 March, 2011

While preparing to enforce a moratorium on forest-clearing, President Susilo Bambang Yudhoyono said palm oil plantation firms could venture into deforested lands to expand their businesses.

The President made the statement during a meeting on Thursday with business leaders from the Indonesian Palm Oil Producers Association (Gapki) to discuss issues surrounding the forest-clearing moratorium.

Gapki secretary-general Joko Supriono told The Jakarta Post after the meeting that Yudhyono said he did not abide by foreign countries asking palm oil companies not to touch Indonesian forests.

President Yudhoyono pledged to accommodate the interests of palm oil companies in order to allow them to expand their businesses during the moratorium period, Joko said.
Read the rest of this entry »

Bookmark to

by Michael Taylor

Reuters

10 February, 2011

Palm oil giant PT Sinar Mas Agro Resources & Technology, or SMART plans to invest $500 million in two crude palm oil plants (CPO), Indonesia’s industry minister said on Friday.

The plants will process CPO for other derived products, MS Hidayat said. “The location is still to be discussed, but I expect them to build the factories outside Java,” he added.

On Wednesday, SMART president director Daud Dharsono told Reuters that it would work with Indonesian government and non-profit organisation The Forest Trust in a bid to boost its green credentials.

Bookmark to