CPO exports to increase to 6.2m tons<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The country's crude palm oil (CPO) export will increase to 6.2
\nmillion tons next year, from an estimated 5.6 million tons this
\nyear, spurred by strong prices and rising national output,
\naccording to the Indonesian Palm Oil Producers Association
\n(Gapki).<\/p>\n
Gapki chairman Derom Bangun said the CPO output was predicted
\nto increase to 9.6 million tons, from an estimated 9 million tons
\nthis year.<\/p>\n
\"The price could rise to an average US$420 per ton next year,
\nfrom an average of $400 this year \" Derom told The Jakarta Post
\nat the closing of a two-day GAPKI congress on Saturday.<\/p>\n
The congress reelected Derom as chairman for the next three
\nyears.<\/p>\n
The congress, which was officially opened by President
\nMegawati Soekarnoputri on Friday, also elected agriculture
\nminister Bungaran Saragih and trade and industry minister Rini M.
\nSoewandi as members of the board of trustees.<\/p>\n
The biannual congress discussed pressing problems faced by the
\nCPO industry across the country.<\/p>\n
During the congress, many participants voiced concerns over
\nthe poor implementation of the Autonomy Law.<\/p>\n
They said that the provincial and district governments had
\nbeen aggressive in imposing various levies on the industry to
\ncollect more revenue, which had placed a heavy burden on CPO
\nproducers.<\/p>\n
\"We are used to various kinds of levies imposed by the
\nregional governments and bribery practices. But, now, the number
\nof levies have increased due to the Autonomy Law,\" Ibrahim Pidie,
\npresident director of Fajar Baizury Group, which operates a
\n8,000-hectare palm oil plantation in Aceh, told The Post.<\/p>\n
The Autonomy Law of 1999, which took effect in 2001, gives
\nregional governments greater power to manage their own political
\nand economic affairs.<\/p>\n
CPO producers in Aceh also have to pay bribes to various
\ngroups to avoid trouble while transporting their goods to Belawan
\nPort in North Sumatra, Ibrahim said.<\/p>\n
Mahyudin Nawawi, president director of PT Tri Sangga Guna,
\nwhich operates a 7,000-hectare plantation in West Sumatra, also
\nvoiced concerns about the numerous levies imposed by the regional
\ngovernment, saying it increased the price of fresh fruit bunches.<\/p>\n
He urged the central government to coordinate with local
\nadministrations to create a conducive climate for CPO investors
\nto do business.<\/p>\n
Other participants of the congress also cited security
\nproblems, weak legal enforcement, poor infrastructure, and banks'
\nreluctance to extend credit as problems confronting the industry.<\/p>\n
Indonesia is the world's second largest CPO producer after
\nMalaysia.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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