CPO producers see `good' prices The Jakarta Post , Jakarta Producers of crude palm oil (CPO) expect prices to reach as high as US$600 per ton this year, betting on higher domestic sales which would help avoid oversupply in global markets, thus stabilizing the prices. The Indonesian Palm Oil Association (GAPKI) said Tuesday the current prices of around $550 per ton was already far better than in the slump in late last year, which saw CPO prices go as low as $400.

JAKARTA, Jan. 28 (Xinhua) -- Indonesia, the world's largest palm oil producer, is to hold international palm oil conference here on May 27 to 29, the committee of the conference said on Wednesday. Over 1,000 producers, the government officials in charge on palmoil industry and others stakeholders from several countries will share their experiences, opinions and ideas in dealing with the productivity and market shares of the commodity, said a member of the committee Witjaksana Darmosarkoro.

Having already been stung by plunging international prices and decreased demand, Indonesia’s crude palm oil producers are bracing for a possible ban on their products by the European Union, which is expected to issue two environmentally-friendly regulations in a bid to encourage sustainable palm oil production, an industry official said.

Indonesia is likely to have a tough time sustaining foreign investment growth this year due to tight liquidity and fierce international competition amid the economic slump, a report from the country’s investment promotion agency says. Last year, the country recorded total direct investment - both domestic and foreign - of Rp 154 trillion ($17.13 billion), 20 percent higher than in 2007, the Investment Coordinating Board, or BKPM, said in the report, which was released last week.

Businesses Slam Government Flip-Flops Over Stimulus by Muhamad Al Azhari & Dion Bisara The Indonesian Employers Association, or Apindo, is questioning the government’s seriousness about giving a “fiscal stimulus” package to the private sector after it proposed to legislators on Tuesday that all additional state spending would be packaged into a single tranche worth Rp 71.3 trillion ($6.27 billion).

Harry Su, Economist Starting in 2009, the government and the parliament have agreed to lower Indonesia's personal income tax upper-bracket from 35 percent to 30 percent This is being implemented to create a more competitive tax rate compared to regional peers. It is worth pointing out that Indonesia's maximum tax bracket is now lower than both Thailand and the Philippines.

Aditya Suharmoko, The Jakarta Post, Jakarta With investment this year forecast to slump, the investment body will focus on investors prioritizing infrastructure, energy and food. Investment Coordinating Board (BKPM) chairman M. Lutfi said Tuesday that amid economic hard times, investment should be prioritized on medium and long-term projects, in "infrastructure, energy and food" sectors.

Indonesia has delayed the finalisation of new rules to underpin a new carbon-credit market around avoided deforestation, a further sign of the complexities around this much-heralded new market mechanism. Indonesia is among the first of the rainforest nations to tackle the intricate rules needed to govern the establishment of a carbon market around forest preservation.

TEMPO Interactive, Bandung:The government has rejected an offer from a Middle Eastern group to invest in West Java’s food sector because the province’s main agricultural product is the national rice stock. “So, the government has not given its approval,” said West Java governor, Ahmad Heryawan, in Bandung yesterday. According to Heryawan, the government is worried that food stocks would be disrupted, given that West Java is the biggest supplier of rice nationwide.

Aditya Suharmoko , The Jakarta Post , Jakarta | Thu, 01/29/2009 7:26 AM | Headlines Businesses have warned the government against giving firms in labor-intensive sectors a waive in employees’ taxes they normally bear, with details of the plan still sketchy.

Jakarta, (ANTARA News) - Indonesia`s crude palm oil production in 2009 is estimated to total 20 million tons, of which 4.5 million to 5 million tons will be consumed at home and the rest exported, a CPO businessman said. Derom Bangun, chairman of the Indonesian Crude Palm Oil Council (DMSI) and adviser of the Indonesian Crude Palm Oil Businesses Association (Gapki), said demand for CPO at home could increase to 6 million to 6.6 million tons.

Medan, N Sumatra (ANTARA News) - The price of crude palm oil (CPO) is predicted to continue its upward trend in response to increasing demand in the world market due to declining stocks, a CPO businessman said. "Although the price is going up it is believed that it would not reach last year`s level when it was recorded at US$1,000 per ton," Treasurer of the Indonesian Crude Palm Oil Producers Association (Gapki), Laksamana Adiyaksa, said here on Wednesday.