Bulog to import 6,000 tons of olein from Malaysia<\/p>\n
JAKARTA (JP): The National Logistics Agency (Bulog), the
\ngovernment's semi buffer stock agency for certain food products,
\nwill import 6,000 tons of olein from Malaysia in preparation for
\na possible shortage of the cooking oil raw material.<\/p>\n
Bulog Chairman Beddu Amang said yesterday that the importation
\nwould be carried out because of uncertainty about the olein
\nsupply from local crude palm oil (CPO) producers for his agency.<\/p>\n
\"The importation of the olein will be the last resort in
\nstabilizing the prices of cooking oil on the domestic market,\" he
\ntold journalists after installing the heads of Bulog's offices in
\nEast Timor, West Kalimantan and Maluku.<\/p>\n
The government has recently imposed taxes on CPO exports as
\npart of its strategy to stabilize cooking oil prices on the
\ndomestic market.<\/p>\n
Bulog will procure 75,000 tons of olein within three months,
\nbeginning this month. Approximately 20,000 tons of olein will be
\nprocured this month, 25,000 tons in August and the remaining
\n30,000 tons in September.<\/p>\n
Beddu said Kantor Pemasaran Bersama, the joint marketing
\nagency for state-owned plantation firms, and privately-managed
\nCPO companies were expected to supply the targeted reserves.<\/p>\n
10 producers<\/p>\n
Bulog has assigned to 10 major CPO producers the task of
\ncoordinating the olein procurement: Sinar Mas, Salim Plantation,
\nSucofindo, Raja Garuda Mas, Tolam Tiga Indonesia, Lonsum
\nIndonesia, Astra, Duta Permai, Indecda and the Tarmidzi Rangkuti
\nGroup.<\/p>\n
Beddu said that the olein procurement in July had not run as
\nsmoothly as expected because most of the assigned private CPO
\ncompanies did not deliver the product.<\/p>\n
CPO producers are often reluctant to sell olein, the most
\nimportant CPO product, to local markets because of its higher
\nprice on overseas markets.<\/p>\n
Beddu said that he would meet with the assigned olein
\nsuppliers on Monday to further discuss the participation of
\nprivate CPO companies in strengthening Bulog's olein buffer
\nstock.<\/p>\n
In the planned meeting, he and executives of the assigned
\ncompanies would discuss the pricing of olein for the planned
\nreserves and the allocation of olein to be supplied by each
\nprivate CPO producer, he said.<\/p>\n
Beddu said that the price of olein to be supplied to Bulog
\nwould be adjusted to the prevailing price in Java.<\/p>\n
Sanctions<\/p>\n
He said that the assignment of private CPO producers to supply
\nolein to Bulog was an appeal and that the assignment was given
\nonly to those CPO plantations with at least 10,000 hectares.<\/p>\n
\"That's why we haven't talked about sanctions. It is an appeal
\nand we want them to participate,\" he said when he was asked about
\nthe government's response to the bumpy supply of olein to his
\nagency.<\/p>\n
Beddu ruled out the possibility of launching open market
\nmeasures to halt a further rise in cooking oil prices.<\/p>\n
\"We hope cooking oil prices will decline without market
\nintervention,\" he said.<\/p>\n
Beddu said that cooking oil prices, which are now
\napproximately Rp 1,550 (70.4 U.S. cents) per kilogram, would fall
\nby at least another Rp 25 per kilogram in each of the following
\nmonths, meaning a price level of Rp 1,400 per kilogram before the
\nbeginning of the Moslem fasting month in late January.(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bulog-to-import-6000-tons-of-olein-from-malaysia-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}