INDONESIA AGRICULTURE: CPO Production Falls After Drought

Jumat, 18 Juli 2014 | 09:44

Secretary General of Indonesian Palm Oil Association (Gapki) Joko Supriyono revealed two major possibilities to the decline of palm production locally and nationally.First, he said, the drought in several planted areas decreases the area productivity.

Second, the business players are still holding their business investment or maneuver due to the uncertain political and economic situation in Indonesia as the effect of 2014 general election.

In addition, the business players are still confused over the next President of Indonesia.

“We practically stop the activities. We are still waiting for the next government. Certainties are the most important thing to the business players,” said Joko to Indonesia Business Daily, Friday (7/11/2014).

Furthermore he explained that the industrialists are also observing the position of new government towards palm industry and the derivatives as it is important to recognize the sentiment of new President to this industry.

In his opinion, palm business both in the upstream such as estate opening or the downstream as in the processing or derivative products are still very attracting.

There are even more foreign investors form Korea and Japan who seek for the opportunity especially in term of the highly prospective food-based production.

On the other side, he declined any assumption to the turbulence in national industry once the eco-labeling is applied in European Union market.

by Arys Aditya