Musim Mas wins 5th Primaniyarta award

JAKARTA (JP): The Medan-based PT Musim Mas palm oil industry has set a new record for government recognition of national level export performance by winning the Primaniyarta award five consecutive times.

"This year marks the fifth consecutive time my company has been recognized with the best exporter at the national level award," Anwar Karim, President of Musim Mas, said.

Musim Mas was one of the 25 companies presented with the national level Primaniyarta award by President Soeharto last Thursday in recognition of their outstanding performance in bolstering Indonesia's exports.

Karim said his company won the award in all categories -- steady, significant increase in exports in absolute and relative terms, and product and market diversification.

"We have steadily diversified our palm oil-based products to higher value added commodities and steadily expanded our export markets to exceed 100 countries," Karim said.

He cited cooking oil, soap, glycerine, fatty acids, margarine, softening agents, vegetable ghee, and refined, bleached and deodorized olein as several of the product lines his mills produce and export.

He said his exports had expanded by an annual average of more than 50 percent between 1991 and 1995, the period reviewed by the Primaniyarta award jury.

However, he declined to give further details on the volume and value of his exports.

Musim Mas, according to the industry and trade ministry which oversees the selection of the companies for the Primaniyarta award, has fully integrated its palm oil industry from the upstream -- oilpalm plantations -- to the downstream products.

There is no short-cut to success in the export market, Karim said; companies have to win and maintain the trust of customers by honoring deals fully according to the contractual terms.

"We started our palm oil business in 1972 and what we have achieved now is not extraordinary in the business scheme of things," he said.

But he considered the palm oil business as very promising although also very competitive, given the suitable climate and steadily increasing demand for palm oil-based products.

"Indonesia now ranks as the second largest producer of palm oil in the world with a national output of 4.8 million tons, still far below Malaysia's 7.8 million tons," he said.

But Malaysia usually exports more than 80 percent of its output due to the small volume of its domestic consumption.

Karim is confident that Indonesia will be able to catch up in the next few years as a result of the massive oil palm estate developments by state and private companies. (vin)