Government backs investigation of tainted CPO<\/p>\n
JAKARTA (JP): The government said on Tuesday it would support
\ncalls by the House of Representatives for an inquiry by the
\nNational Police into Europe-bound crude palm oil (CPO) which was
\ntainted with diesel oil.<\/p>\n
Minister of Industry and Trade Yusuf Kalla said he had sent a
\nletter to National Police chief Lt. Gen. Rusdihardjo asking
\ngreater attention be focused on the case, because the
\ninvestigation by local police was moving too slow.<\/p>\n
The investigation, which is currently being handled by the
\nMedan Police, was opened following the discovery of 85,000 metric
\ntons of tainted CPO in Rotterdam. The CPO was shipped from
\nBelawan Port, North Sumatra's main gateway for CPO exports.<\/p>\n
\"Involving the National Police is a good idea,\" Yusuf said
\nbefore the opening of a business luncheon sponsored by the
\nIndonesian-Argentinean Chamber of Commerce and Industry.<\/p>\n
Yusuf said he was aware the local police were investigating
\nthe tainted CPO, but would encourage the National Police to open
\nits own investigation.<\/p>\n
The tainted CPO is believed to be the result of thieves mixing
\ndiesel oil with the crude palm oil, thereby preventing
\nauthorities from detecting the theft of the CPO by the reduced
\nvolume.<\/p>\n
Resolving the CPO thefts is instrumental to resuming CPO
\nexports to Europe at their normal levels, Yusuf said.<\/p>\n
Soon after the discovery of the tainted crude palm oil in
\nRotterdam, the Dutch government demanded Indonesia take action
\nagainst the responsible parties and are now pressing for a
\nresolution of the case.<\/p>\n
Yusuf said he was still awaiting a report from the General
\nAttorney's Office on the matter, adding that the attorney general
\nhad to wait for the police to conclude its investigation.<\/p>\n
\"It's all of our responsibility to find a quick resolution,\"
\nhe said.<\/p>\n
The Federation of Palm Oil Producers and the House of
\nRepresentatives called on the government last week to resolve the
\nCPO thefts in order to regain the confidence of importers.<\/p>\n
Federation chairman Derom Bangun called on President
\nAbdurrahman Wahid to address the issue during his planned visit
\nto several European countries early next month.<\/p>\n
Legislator Ade Komaruddin of House Commission V for industry
\nand trade said his commission, which is in recess until Jan. 20,
\nwould recommend the government order the National Police to
\ninvestigate the case.<\/p>\n
The suggestion came after the commission sent a team,
\nincluding Ade, to Medan for four days to investigate the matter.
\nThe team discovered what Ade called a vicious cycle of
\ncooperation among CPO thieves, police and military personnel and
\na number of CPO companies that purchased the stolen crude palm
\noil.<\/p>\n
The team discovered the practice of CPO thieves mixing diesel
\noil with the crude palm oil to cover their crime.<\/p>\n
Yusuf said that of the 85,000 tons of contaminated CPO shipped
\nto Rotterdam, European importers were willing to purchase around
\n60,000 tons at discounted prices.<\/p>\n
\"Of course they will sell the tainted CPO for nonconsumption
\nproducts like soap,\" he said.<\/p>\n
Yusuf declined to quote the prices paid for the contaminated
\nCPO, but according to media reports importers agreed to purchase
\nthe tainted CPO at between US$50 and $120 per ton.<\/p>\n
According to the Dutch Department of Health, the contamination
\nlevel of the CPO was negligible and would be safe for use in food
\nproducts.<\/p>\n
However, 21,000 tons of the tainted CPO have already been
\nshipped back to Belawan, for which Indonesian exporters must pay
\nabout $415 per ton in charges.<\/p>\n
As a result of this case, Indonesia's CPO exports to Europe
\ndropped drastically, causing stocks of the product to pile up in
\nseveral production centers, according to the palm oil federation.<\/p>\n
Indonesia's CPO stocks have reached between 400,000 and
\n500,000 tons, and the stocks will continue to increase because
\nthe market is already oversupplied, the federation said. (03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-backs-investigation-of-tainted-cpo-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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