The Government To Prepare CPO Down Streaming Roadmap

Senin, 24 Maret 2014 | 10:03

The government promised to immediately resolve the roadmap arrangement to accelerate crude palm oil (CPO) down streaming after all related stakeholders in the sector agrees to sit down and discuss.The roadmap will contain down streaming strategy that accommodate most stakeholders. It was also related to the limited national private engaged between the product and the end of this commodity.

“There only few that engaged in down streaming and it’s insufficient to absorb all CPO production. We want to make roadmap first.” said Director General of Plantation at Agriculture Ministry Gamal Nasir, Sunday (3/23).

He explained, CPO production is still highly prospective and they are targeting this year there will be growth, both in planting and its area as well, at least by 5%.  Agriculture Ministry recorded, until the end of last year there were approximately 9.2 million ha of plantations which were planted.

He also said it also makes ministry often requires all companies and plantations to immediately obtain Indonesian Sustainable Palm Oil (ISPO) which is targeted to complete this year.

He explained before stepping into the downstream, preferably entrepreneurs engaged in this sector resolve the legality of the plantation business license (IUP) and the right to cultivate (HGU).

On the other hand, employers said that downstream is a step that must be taken so that the price of this product is not solely determined by the international market.

"If we want to win, we have to make a lot of options. If anyone does not want to make your own cooking oil, make buttery. Otherwise if we couldn’t make butter, then make biofuel. Because if they do not want to take, we can chose one of the options, "said Tony Liwang, Chief Division of Crop Production and Biotechnology Sinar Mas Agro Resources Ana Technology Tbk.

He explained until now Indonesia cannot determine result in sales of CPO buyers can apply arbitrarily.

He described during this time a lot of fuss international consumers indicated conducting black campaign against palm oil in the country, because they know Indonesia does not have alternative sales despite raw form. This, he said, which is a weak point in the export of CPO.

He describes, for example, consumers do not buy palm oil from Indonesia threatened, then this can be circumvented by allocating two thirds of production or the equivalent of about 20 million tons of palm oil for biodiesel, while the rest, or 10 million tons, is exported.

If this could be done, he added, the CPO price in the market will skyrocket and buyers will inevitably follow the prices set by Indonesia.

Palm oil was 60% of world vegetable oil. Production in the country remains. Unlike oil and natural gas production can be upside down with one button. That's why we play the price. Indonesia hold cards, other countries do not. So should we own city. If do not want the price by now, we shouldn’t sell it,” he said.

by Arys Aditya, Elok Ani Riani