Private producers slow to supply CPO<\/p>\n
JAKARTA (JP): The chief of the National Logistics Agency
\n(Bulog) expressed concern that private sector producers have not
\nbeen earnest in fulfilling their commitments to allocate crude
\npalm oil (CPO) to a buffer stock.<\/p>\n
\"We are still waiting for the supply of 10,000 tons of CPO
\ncommitted by private producers this month,\" Beddu Amang told a
\nfour-day national workshop of the Ministry of Agriculture on
\nMonday night.<\/p>\n
Beddu explained that Bulog's buffer stock of CPO, the main raw
\nmaterial for cooking oil production, is currently only 10,000
\ntons, or half the targeted procurement for this month. It all
\ncame from state-owned plantation companies.<\/p>\n
Beddu indicated that private CPO firms may be unable to
\ncontribute their share of oil due to the present decline in CPO
\nproduction.<\/p>\n
Last month the government announced that all producers, both
\nstate-owned and private firms, are required to allocate part of
\ntheir production to Bulog's buffer stock.<\/p>\n
The buffer is expected to shorten the commodity's distribution
\nand marketing line and gradually cut back local cooking oil
\nprices by about Rp 25 (1.12 U.S. cents) per kilo every month
\nuntil September. They aim to obtain a reasonable price of Rp
\n1,400 per kilo.<\/p>\n
Beddu said the market operation will require 75,000 tons of
\nCPO for Bulog's buffer stock, with equal portions coming from the
\ngovernment and private sectors.<\/p>\n
The collection of the stock, he said, will be adjusted with
\nthe production cycle of CPO. Bulog has targeted 20,000 tons of
\nCPO this month, 25,000 tons in August and 30,000 tons in
\nSeptember.<\/p>\n
He said that future supplies would depend on the amount of the
\nbuffer stock used to stabilize prices.<\/p>\n
Beddu admitted that there was no legal basis to force private
\nCPO producers to participate in the market operation. Bulog,
\ntherefore, can't count on their involvement.<\/p>\n
He said that only private CPO producers owning more than
\n10,000 hectares of palm oil plantation are required to
\nparticipate.<\/p>\n
If market operations fail to stabilize prices, he said, Bulog
\nmay opt to import cooking oil, which is currently exempted from
\nduties.<\/p>\n
The current price of imported cooking oil can reach Rp 1,700 a
\nkilo. Locally produced oil costs Rp 1,550 a kilo.<\/p>\n
Cooking oil is a main foodstuff in Indonesia. About two
\nmillion tons, or 80 percent, of Indonesian cooking oil is made
\nfrom palm oil. The remaining 450,000 tons is made from coconuts.<\/p>\n
The government presently taxes CPO exports in a bid to avoid
\nprice fluctuations.<\/p>\n
Beddu admitted, however, that in certain situations the tax
\ncouldn't prevent fluctuations. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/private-producers-slow-to-supply-cpo-1447893297",
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