KL better in tapping CHina's CPO market<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
Indonesia has failed to compete with Malaysia in penetrating
\nChina's promising crude palm oil (CPO) market due to poor
\nmarketing efforts, the Indonesian Palm Oil Producers Association
\n(Gapki) said on Wednesday.<\/p>\n
Gapki's chairman Derom Bangun warned that Indonesia would lag
\nfurther behind Malaysia in the Chinese market, if local producers
\ndid not immediately take actions to boost marketing efforts in
\nthe world's most populous nation.<\/p>\n
Derom said that unlike Malaysian producers, who are aware of
\nthe importance of marketing efforts, Indonesian producers are
\n"production-minded" rather than "marketing-minded".<\/p>\n
"Indonesia will face difficulties in increasing its CPO export
\nto China if local producers are unwilling to change their
\nproduction oriented thinking," Derom told The Jakarta Post in
\nJakarta on Wednesday.<\/p>\n
He urged local producers to spend more capital on promotion of
\ntheir CPO products abroad.<\/p>\n
"The CPO market has been saturated, unlike several years ago.
\nSo we have to be more active in promoting our products and taking
\nnew potential markets," he said.<\/p>\n
Describing the aggressive marketing campaign conducted by
\nMalaysia in China, Derom said Malaysia had two marketing
\nrepresentative offices in China, one established by the
\nassociation of Malaysian palm oil producers and the other by the
\nMalaysian government.<\/p>\n
"Indonesia, meanwhile, has nothing there. We are very
\nineffective in marketing," he said.<\/p>\n
Indonesia has only sent one trade delegation to China early
\nthis month, consisting of CPO producers and government officials,
\nas part of marketing efforts in China, Derom said.<\/p>\n
According to Derom, Malaysia expects to export 900,000 tons to
\nChina this year, while Indonesia's exports are projected to reach
\nonly 450,000 tons. Last year, Indonesia exported a total of
\n450,000 tons to China.<\/p>\n
Indonesia is the second largest CPO producer in the world with
\nan annual output of 7.2 million tons, while Malaysia is the
\nlargest with an annual output of 10.8 million tons.<\/p>\n
"I have received information that China will raise its import
\nquota to 1.8 million tons of CPO in 2002, from 1.4 million tons
\nthis year. The quota will be further raised to 2.2 million in
\n2003 and 2.6 million in 2004," he said.<\/p>\n
Derom said during the trade mission to China, the Indonesian
\ndelegation met with about 300 Chinese businessmen.<\/p>\n
"They (Chinese businessmen) are actually very enthusiastic
\nabout Indonesian CPO products but they voiced concerns about the
\nquality. That's why, we need to be more proactive," he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kl-better-in-tapping-chinas-cpo-market-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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