RI 'has not provided' money for coffee plan<\/p>\n
SINGAPORE (Dow Jones): Indonesia hasn't provided promised
\nfinancial support for a coffee retention program aimed at
\npropping up world coffee prices, according to Nuril Hakim, vice
\nchairman of the Association of Indonesian Coffee Exporters, or
\nAEKI.<\/p>\n
"So far, the government hasn't contacted AEKI yet, neither has
\nBank Mandiri," Hakim said told Dow Jones Newswires Wednesday.<\/p>\n
The Indonesian government said last week it will support
\nretaining up to 40,000 tons of coffee this year. The Ministry of
\nFinance was expected to provide Rp 55 billion to finance the
\nfirst phase of the retention program.<\/p>\n
At the same time, President Abdurrahman Wahid said state-owned
\nBank Mandiri will handle the financing of the retention plan,
\nestimated to cost Rp 200 billion.<\/p>\n
Hakim said about 10,500 metric tons of coffee are being stored
\nby exporters in eight warehouses in Lampung. The provinces of
\nLampung, Bengkulu and South Sumatra account for 75 percent of
\nIndonesia's coffee output.<\/p>\n
He said, however, that the coffee in those warehouses has been
\nwithheld by sellers because of low prices and not the retention
\nplan.<\/p>\n
Hakim said AEKI will wait until April 1. If the Rp 55 billion
\nisn't received by then, exporters will sell off the coffee if
\nprices improve.<\/p>\n
The retention plan, adopted by the Association of Coffee
\nProducing Countries, is a global plan aimed at lifting sagging
\nworld prices.<\/p>\n
Under the plan, 20 percent t of global exports will be
\nwithheld until prices reach the International Coffee
\nOrganization's reference price of 95 U.S. cents a pound.<\/p>\n
That indicator currently stands at 49.77 cents\/pound.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ri-has-not-provided-money-for-coffee-plan-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }