DPR demands action on tainted CPO<\/p>\n
JAKARTA (JP): The House of Representatives criticized the
\ngovernment on Tuesday for its handling of the contamination of
\ncrude palm oil exports from North Sumatra.<\/p>\n
Angered by the government's inaction, House Commission V for
\nindustry and trade established a fact-finding team to investigate
\nthe contamination, which has prompted Europe to virtually halt
\nall crude palm oil (CPO) imports from Indonesia.<\/p>\n
The commission took the decision after meeting with executives
\nof state and private CPO producers and storage companies,
\nincluding the Salim Oil, Musim Mas, Smart and Prima Palm
\nplantation groups.<\/p>\n
The executives confirmed that European buyers had virtually
\nstopped importing CPO from Indonesia after 19,000 metric tons of
\nCPO shipped from North Sumatra's port of Belawan was found to be
\ncontaminated with diesel oil upon arrival in Rotterdam in
\nOctober.<\/p>\n
Several other shipments totaling 66,000 tons of CPO which
\narrived in Rotterdam in November were also found to be tainted
\nwith diesel oil.<\/p>\n
The director of the joint marketing agency of state-owned
\nplantation companies, Asep T. Tojib, told legislators that
\nIndonesia must address the problem more seriously or risk losing
\nthe European market, which accounts for more than 25 percent of
\nIndonesia's annual total CPO exports of around three million
\ntons.<\/p>\n
\"If Europe shifts to other suppliers, it would be very
\ndifficult to regain that market,\" he said.<\/p>\n
Asep said Europe had not officially imposed a ban on
\nIndonesian CPO, but European buyers were placing very few new
\norders.<\/p>\n
He also said Europe was awaiting concrete measures by the
\nIndonesian government to prevent further contamination of CPO
\nshipments, as well as demanding that those responsible for the
\ntainted shipments be dealt with firmly.<\/p>\n
The Ministry of Industry and Trade confirmed that the
\ncontaminated CPO originated from the Deli Tama Indonesia storage
\ntanks at Belawan Port.<\/p>\n
However, no action has been taken against those responsible
\nfor the contamination.<\/p>\n
The Deli Tama Indonesia storage tanks, owned and managed by
\nstate plantation company PTPN III, are used by all state
\nplantation companies in the province.<\/p>\n
Members of the commission for industry and trade lambasted
\nPTPN III for its mishandling of CPO in its storage tanks at the
\nport.<\/p>\n
\"The government should deal firmly with the management of PTPN
\nIII and president Djoharuddin for the fiasco which has destroyed
\nIndonesia's reputation in the European market,\" Ade Komarudin of
\nGolkar Party said.<\/p>\n
Indonesian Democratic Party of Struggle (PDI Perjuangan)
\nlegislator Suparlan agreed, demanding that PTPPN III president
\nDjoharuddin, who has led the company for more than 11 years, be
\nheld responsible for the debacle.<\/p>\n
Another legislator, Mindo Sianipar, said the government should
\nmake it clear to buyers in Europe that only CPO from the Deli
\nTama Indonesia tanks had been tainted with diesel oil.<\/p>\n
\"CPO from other suppliers who do not use the Deli Tama
\nIndonesia storage tanks is all right,\" Sianipar said after the
\nhearing.<\/p>\n
Deli Tama director Megananda Daryono confirmed all of the
\ncontaminated CPO came from his company's storage tanks.<\/p>\n
\"We have tightened the tests on the CPO both before it is put
\ninto the tanks and before the CPO is pumped into ships,\"
\nMegananda said.<\/p>\n
He said most of Deli Tama's tanks had been cleaned and a
\nlaboratory would be set up within several weeks to enable the
\ncompany to test for diesel oil contamination, a process which
\npresently is performed by state-owned surveyor company PT
\nSucofindo Indonesia.<\/p>\n
\"The laboratory is part of the conditions imposed by buyers in
\nthe Netherlands to ensure that shipments from Belawan are not
\ntainted,\" he said.<\/p>\n
Separately, Tengku Azwar Aziz of the trade office in Medan,
\nNorth Sumatra, said on Tuesday CPO exports from the province fell
\nto 25,809 tons worth US$8.3 million in November. This was down
\nfrom the 69,425 tons valued at $20.01 million exported in
\nOctober.<\/p>\n
Aziz said in addition to Europe, CPO exports from North
\nSumatra went to the Middle East, Africa, India and several other
\ncountries. (03)<\/p>",
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