RI to import oil palm seedlings from Malaysia

RI to import oil palm seedlings from Malaysia

JAKARTA (JP): Indonesia will import about 1.8 million oil palm
seedlings from Malaysia this year, head of the North Sumatra-
based Palm Oil Research Center (PPKS) Kabul Pamin has said.

Kabul said the seedling would be distributed to plantations in
eastern Sumatra's Riau province and had been approved by the
government because of a shortage of certified seedlings.

An expansion of oil palm plantations caused the shortage, he
said. Last year's shortage was estimated at 10 million seedlings.

Pamin estimated Indonesia's oil palm plantations would expand
to 2.35 million hectares this year from 2.1 million hectares last
year.

"The rapid expansion of plantations has not been matched by an
increase in the production of certified seedlings, therefore
forcing us to import, " he was quoted by the Kompas daily as
saying.

Last year the domestic supply of certified seedlings was 60
million but there was demand for 70 million. The shortage opened
opportunities for profiteers to sell uncertified seedlings.

Kabul said the three licensed certified seedling suppliers,
PPKS, PTPP London Sumatra and PT Socfindo, would expand
production this year.

PPKS would produce 10 million extra seedlings, he said.

This production expansion will increase PPKS' production to 50
million seedlings, making it the world's largest single producer.

"But the condition may improve soon as three private companies
-- PT Tania Selatan Palembang, the Salim Group, and Astra Group
have expressed interest in producing certified seedlings," he
said.

Another PPKS executive, Darwis, said the sharp increase in
demand for certified seedlings was spurred by a demand rise in
the international palm oil market.

Daswir said annual growth rate in palm oil demand would
increase from 15 percent in 1995 to 20 percent in 2000, while the
annual demand for soybean oil would rise from 19 percent in 1995
to 22 percent in 2000.

"By 2005, the growth of the demand for palm oil is estimated
to reach 27 percent, exceeding the estimated 25 percent growth
for demand for soybean oil," he said.

He said Indonesia was the only country which could
significantly expand its oil palm plantations to meet rising
demand.

PPKS said Indonesia produced about five million tons of crude
palm oil a year.

The government has been urged to slow down oil palm estate
expansion to stop the sale of uncertified seedlings.

M.P. Lumbantobing, a professor of Medan's North Sumatra
University, said the shortage of oil palm seedlings was because
the rapid expansion of oil palm estates had encouraged the sale
of uncertified seedlings at the expense of owners of small
plantations.

Lumbantobing said importing might not be the final solution to
the shortage problem.

"The land and climate of the country which exports the
seedlings may not be suitable to the climate in Indonesia," he
said. (02)