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From Sugarcane to Sugar, Indonesia's Inefficient Route

03

Mar

From Sugarcane to Sugar, Indonesia's Inefficient Route

They finance the supporters in Entikong in West Kalimantan, which borders directly with Malaysia, to shop for sugar in the neighboring country. [...]

From Sugarcane to Sugar, Indonesia's Inefficient Route. They finance the supporters in Entikong in West Kalimantan, which borders directly with Malaysia, to shop for sugar in the neighboring country. Malaysia is not an exporting country. The neighboring country procures sugar from Thailand. Although Entikong residents get sugar officially from Malaysia which is sourced from Thailand, the price is still cheaper than the sugar produced by hundreds of sugar factories in Indonesia. “This can happen due to the efficiency of sugarcane farming and sugar production in Thailand, which is much better than that in Indonesia. This will become a threat to the sugarcane and sugar production in Indonesia if the AEC takes effect,” said Sahat M. Pasaribu, Agricultural Economist from Bogor Institute of Agriculture (IPB). According to Sahat, one key to the success of the sugar industry in Thailand is its high productivity. It makes the yield to reach more than 10%. With the high productivity of sugarcane land, the sugar industry in Thailand has strong competitiveness in the world sugar market. The result of cost analysis shows that the sugar production cost in Thailand is the lowest worldwide. In 2011, there were 47 sugar factories in Thailand which produced more than 100 million tons of sugar cane and 10 million tons of sugar/year. 
In 2013, its sugarcane production has increased again to more than 105 million tons and its export reaches 9.3 million tons. In 2014, Thailand's sugar production reached 11 million tons with a local consumption of 2.5 million tons/year. “Now Thailand is recorded as one of the largest sugar exporter in the world,” says Sahat. Thailand is now far leaving behind Indonesia which used to be the world's second largest sugar producer in the 80s. Now Indonesia has become a sugar importer. One of the causes of the low sugar production in Indonesia is the issue of efficiency. Especially in terms of sugarcane, because the average level of sugarcane yield in Indonesia only ranges from 5-6 percent. It is far lower than Thailand's which reaches more than 10 percent. There are many factors that cause this. For example, the sugarcane land which is now much reduced, the irrigation system which is not good yet, uneconomical fertilizer, and the lack of farmer's capital. If this can be overcome, there is also another factor that causes the inefficiency of sugarcane production into sugar. 
The poor cultivation management sometimes results in lower sugarcane yields from the farmers. The longer the sugarcane is dry or delayed in the harvest, the lower the yield result will be or not at its best. “For example, in terms of sugarcane harvest and its transportation to the factory. It often happens that the sugarcane farmers bribe the sugar factory to get their land harvested first so that their sugarcane harvest will not dry out and its yield will be good,” says Sahat. In order to increase the sugarcane yield and efficiency in the production process from sugarcane into sugar, a breakthrough must be made by the government which works in partnership with the private sector. Starting from the credit granting, good cultivation management, to the optimal harvest and production process. In addition to the revitalization of the sugarcane factories so that they can produce a maximum yield and their production capacity can be increased. If this efficiency can be carried out well, then the government purchase price (HPP) for sugar cane can be created. Of course, this HPP for sugarcane is created with a price that is attractive to the farmers and encourages them to grow sugarcane which will produce sugar. Editor: Toni Bramantoro http://www.tribunnews.com/bisnis/2016/03/02/dari-tebu-ke-gula-kurang-efisien-di-indonesia?page=3

President Wants State-Owned Company Holding to be Decided Soon

29

Feb

President Wants State-Owned Company Holding to be Decided Soon

In the opening of the closed meeting, he said the implementation of the holding would be the first step towards creating a state-owned enterprise [...]

President Wants State-Owned Company Holding to be Decided Soon. In the opening of the closed meeting, he said the implementation of the holding would be the first step towards creating a state-owned enterprise (SOE) that was strong, agile, and brave in facing an era of competitive competition.
“Be it in the form of superholding or holding, or starting first with virtual holding. This must be decided immediately so that the SOE's strength and agility may be immediately carried out, especially in facing the AEC,” he said at the Presidential Palace Complex on Monday (29/2/2016).
With that, he said SOEs could become the locomotive of economic growth by giving the maximum multiplier effect for the prosperity of the people.
In addition, Jokowi said this method could make domestic SOEs not only strong within the country, but also able to achieve in international competitions.
“In addition to restructuring and focusing on business, a total change in work culture in SOEs is also needed; I am certain we have competitiveness,” he said.
Previously, in a copy of the document from the Ministry of SOEs obtained by Bisnis, it was preparing around 15 SOE holdings in the period of 2015-2019 as an effort to make SOEs the front line in national development.
The SOE holdings that were prepared include the sectors of tourism, logistics, food, plantations, fertilizer, pharmaceuticals, ports, construction and infrastructure, connectivity, mining, strategic defense, reinsurance, heavy industry, general insurance, banking, and survey services.

Editor : Fatkhul Maskur

http://finansial.bisnis.com/read/20160229/309/523643/presiden-ingin-holding-bumn-segera-diputuskan

PALM OIL COMPETITIVENESS: 149 Companies Receive ISPO Certification

29

Feb

PALM OIL COMPETITIVENESS: 149 Companies Receive ISPO Certification

Bayu Krisnamurthi, CEO of the Plantation Fund Management Agency (BPDP) of palm oil, said ISPO certification efforts for companies and farmers [...]

PALM OIL COMPETITIVENESS: 149 Companies Receive ISPO Certification. Bayu Krisnamurthi, CEO of the Plantation Fund Management Agency (BPDP) of palm oil, said ISPO certification efforts for companies and farmers will be accelerated. At this time, there are still 540 companies that are still in the process of ISPO audits. Palm oil funds are also expected to assist with the process of financing for the auditing process, in addition to being used for ISPO certification for farmers. “This is important because we want sustainability to become our identity and our advantage. Another important aspect for us to promote in other countries is to show that Indonesia emphasizes this aspect of sustainability,” he explained after holding a meeting with Coordinating Minister for Economic Affairs Darmin Nasution, in Jakarta, Monday (29/2/2016). He said the ISPO Secretariat will also be involved in actualizing the use of palm oil funds to assist farmers in obtaining certification and have their products declared as sustainable products. The additional 540 palm oil companies being audited to obtain ISPO will make total production of sustainable palm oil reach 10 million to 11 million tons of palm oil. “Total Indonesian production is almost 32 million tons or 33 million tons. We still have to work hard to reach 100%,” he said. As is known, ISPO is a policy adopted by the government to increase the competitiveness of Indonesian palm oil in the global market. In addition, ISPO is a form of an effort to reduce greenhouse gases and give attention to environmental problems.  Editor : Linda Teti Silitonga  http://industri.bisnis.com/read/20160229/99/523595/daya-saing-sawit-149-perusahaan-terima-sertifikasi-ispo

Venezuela, Qatar, Saudi Arabia, Russia to meet on oil price-Reuters

26

Feb

Venezuela, Qatar, Saudi Arabia, Russia to meet on oil price-Reuters

"We have reached an agreement...to meet in a yet to be determined city, to decide on the proposals," Del Pino said in an interview with local [...]

Venezuela, Qatar, Saudi Arabia, Russia to meet on oil price-Reuters. `We have reached an agreement...to meet in a yet to be determined city, to decide on the proposals,` Del Pino said in an interview with local television network Telesur. He also called for the participation of all OPEC members and allies in the meeting, so that far-reaching actions could be taken to address the troubled market. `We need to submit this agreement to the world's main oil producers ... and take a decision on how to stabilize the market,` he was quoted as saying by Xinhua. On Feb. 16, oil ministers from Venezuela, Saudi Arabia, Russia and Qatar signed an agreement in Doha on coordinating actions to freeze oil output in an effort to stabilize global oil prices and ensure the sustainability of the industry. Venezuela's state oil firm PDVSA also said that the ministers agreed to establish a monitoring committee `to follow up on the results of these actions.` The Venezuelan government has been actively pushing for a production freeze since mid-2015 because oil prices have plunged by nearly 70 percent since mid-2014 to below 33 U.S. dollars a barrel on Wednesday. (Uu.A026)   
Editor: Maryatihttp://www.antaranews.com/berita/547168/venezuela-qatar-saudi-dan-rusia-akan-bertemu-bahas-harga-minyak

As the World’s Logistics Exhibition Location, Indonesia Has a Chance to Get Investors

22

Feb

As the World’s Logistics Exhibition Location, Indonesia Has a Chance to Get Investors

The intralogistics trade fair (CeMAT) will be held from February 28 to March 3, 2017 at the ICE BSD City, Jakarta. The exhibition will showcase [...]

As the World’s Logistics Exhibition Location, Indonesia Has a Chance to Get Investors. The intralogistics trade fair (CeMAT) will be held from February 28 to March 3, 2017 at the ICE BSD City, Jakarta. The exhibition will showcase material handling products such as; industrial trucks, complete logistics systems, racks, cranes, warehousing systems, lifting equipment, access platforms, auto ID systems, robotics, and freight forwarding such as terminal operations, transport infrastructure. Senior Vice President of Deusche Messe, Wolfgang Pech said that the exhibition is targeting to attract more than 200 participants from various backgrounds including investors, businesspeople and the public. `By holding this exhibition we expect many investors to attend. In this seminar there will be many ideas and solutions emerging to increasingly improve Indonesia's competitiveness,` said Pech. He said that Indonesia was chosen as the venue for CeMAT at the same time as the Asean Economic Community (AEC) momentum. `Indonesia offers great business opportunities for logistics companies,` said Pech. Pech said that CeMAT exhibitions had been held in several places such as Hannover in Germany, Shanghai in China, Moscow in Russia, Mumbai in India, and Melbourne in Australia. `We are expanding to Southeast Asia and have chosen Indonesia which occupies a central position in the region,` added Pech. The exhibition's organizer from Germany organized CeMAT with ITE Group Plc from the UK through PT Debindo-ITE. Laurent Noel, Director of Industry, Transport and Logistics at ITE Group Pte, said that his company is very excited to organize this exhibition. `I am happy that we can combine two leading trade exhibition organizations in the world, namely ITE in the sector of transport logistics and Deutsche Messe in the sector of material handling and intralogistics,` he said.According to him, the exhibition can provide benefits for the logistics industry in Southeast Asia. `The best time to hold this exhibition is now, because in 2017 the Indonesian government will have completed the first part of a new infrastructure project in Java, Sumatra and Kalimantan which will stimulate the local economic growth,` concluded Noel.

Author
: Ramanda Jahansyahtono

Editor
: M Fajar Marta

On Palm Oil, Indonesia Still Faces Challenges

22

Feb

On Palm Oil, Indonesia Still Faces Challenges

The concept of sustainable development for palm oil plantations is one of the concerns of the Ministry of Agriculture. Information from the [...]

On Palm Oil, Indonesia Still Faces Challenges. The concept of sustainable development for palm oil plantations is one of the concerns of the Ministry of Agriculture. Information from the ditjenbun.pertanian.go.id website today shows that there is planning and realization of Sustainable Palm Oil Initiative (SPOI) activities covering five strategic components. In sequence, the five components are first, reinforcing the implementation of ISPO certification for farmers, particularly in the implementation of good agricultural practices (GAP) and environmental conservation. Second, reinforcing ISPO for forest conservation, increasing the conservation of biodiversity and mitigation, as well as reducing greenhouse gas emissions. Third, facilitating mediation of issues/disputes and empowerment.Fourth, reinforcing the ISPO system and standards so that it can be recognized and obtain greater support and acceptance in society. Fifth, realizing national and provincial platforms to ensure transparency and promote sustainable palm oil.

Meanwhile, Minister of Agriculture Andi Amran Sulaiman’s notes at the 2015 Indonesia Palm Oil Conference (IPOC) in Bali on November 25 to 27, 2015 demonstrate that palm oil is a strategic commodity. (Read: Two Reasons Palm Oil is Not in the Intensive Care Unit).According to Amran, palm oil and its derivatives record an average of Rp 250 trillion in foreign exchange for Indonesia. “Organizationally, the palm oil industry is already strong,” he said. In the next section, the Indonesian Palm Oil Producers Association (Gapki), which was the organizer of the conference, demonstrated that by the end of 2014, production of palm oil in Indonesia reached 31.5 million tons. Of that amount, 21.7 million tons were exported.However, Ricky Avenzora, an environmental and forestry observer from the Bogor Agricultural Institute (IPB) warned in a press release yesterday that there are still challenges for Indonesia in relation to palm oil. Indonesia’s increased production of palm oil increases Indonesia’s opportunities to become a crucial country for producers of raw materials for food and pharmaceuticals. As a consequence, the large industrial countries like the United States and Europe become dependent on Indonesia. Ricky calculates that a 10 percent increase in palm oil production in Indonesia will make producers of raw materials for food and pharmaceuticals in the United States dependent by as much as 12 percent. Because of this, Ricky suggests that the United States has a tendency to be hostile towards the growth of palm oil in Indonesia. Furthermore, palm oil is a favorite product for renewable biofuel energy. Indonesia’s crucial role in relation to this renewable energy is thus more and more necessary.

Editor
: Josephus Primus

http://bisniskeuangan.kompas.com/read/2016/02/20/123100326/Ihwal.Kelapa.Sawit.Indonesia.Masih.Hadapi.Tantangan

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