CPO imports will continue: Beddu<\/p>\n
JAKARTA (JP): The National Logistics Agency (Bulog) has
\npledged to continue importing crude palm oil (CPO) to stabilize
\ndomestic cooking oil prices.<\/p>\n
Beddu Amang, Bulog's head, said the agency would keep
\nimporting olein, which costs Rp 150 a kilogram more overseas than
\non local markets, although this would amount to a significant
\nsubsidy.<\/p>\n
He said the agency lost about Rp 15 billion (US$6.4 million) a
\nyear to stabilize cooking oil prices.<\/p>\n
\"We have successfully stabilized the price of local crude palm
\noil in the past three years,\" Beddu said recently as quoted by
\nBisnis Indonesia daily.<\/p>\n
The agency keeps buffer stocks to control prices of important
\ncommodities such as rice, sugar and cooking oil.<\/p>\n
The agency imports olein, cooking oils or even CPO to
\nstabilize local cooking oil prices.<\/p>\n
Indonesia is a major CPO producer, but most locally produced
\nCPO is exported because overseas prices are higher.<\/p>\n
The agency also buys CPO from state-owned palm oil producers.
\nThe CPO is processed at local refineries under a cooperation
\nscheme before being sold directly to local markets.<\/p>\n
The agency's data shows that it now holds 44,505 tons of olien
\nstock.<\/p>\n
The agency said it would import about 12,000 tons of olien and
\nbuy 11,000 tons locally this month, raising its stock to about
\n68,000 tons.<\/p>\n
On the government's proposal to establish a futures commodity
\nexchange, Beddu said he fully supported the plan to include CPO
\nin futures trading.<\/p>\n
He said that trading CPO futures could raise the commodity's
\nsales value and export volume, which would raise the income of
\nfarmers, producers and exporters.<\/p>\n
\"CPO can be traded on the futures exchange as well, although
\nonly agricultural products are commonly traded on futures
\nexchanges,\" he said.<\/p>\n
The House of Representatives is deliberating the government-
\nsponsored bill on the futures commodities exchange.<\/p>\n
CPO exports rose last year as a government regulation, which
\nimposed an export tax on CPO producers, was temporarily dropped.<\/p>\n
The export tax is automatically dropped if prices on the world
\nmarket fall below $434 a ton for CPO and below $500 a ton for
\nolein and cooking oil. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cpo-imports-will-continue-beddu-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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