Latest News: Page 115

ITRC agrees to cut natural rubber exports

04

Feb

ITRC agrees to cut natural rubber exports

The Acting Director General of Foreign Trade at the Trade Ministry, Karyanto Suprih, explained in Jakarta on Thursday that member countries of the [...]

ITRC agrees to cut natural rubber exports. The Acting Director General of Foreign Trade at the Trade Ministry, Karyanto Suprih, explained in Jakarta on Thursday that member countries of the ITRC consisting of Indonesia, Thailand, and Malaysia have agreed to reduce their exports of natural rubber entering the Agreed Export Tonnage Scheme (AETS) with allocations of 324,005 tons for Thailand, 238,736 tons for Indonesia, and 52,259 tons for Malaysia.According to Karyanto, the price of natural rubber, which is currently at US$1.09 per kilogram, will impact rubber farmers, and the implementation of the AETS is expected to support prices at a level that is fair for farmers.He said, `Export reduction will cause the global stock of natural rubber to be absorbed by the market. The supply of natural rubber on the global market will decline further due to the decline in production of natural rubber in producing countries because of the low price of the commodity.`Karyanto explained to other natural rubber producing countries such as Vietnam that ITRC members will continue to communicate in order to build a strategic partnership.He said, `We have made calculations regarding whether or not Vietnam will participate in the export reduction. If it does, it will be approximately 85 thousand tons.`He said that along with the export reduction, absorption of natural rubber domestically is expected to increase.The government is striving to increase domestic absorption of natural rubber, among other things by implementing road construction projects and dock fenders at ports.The Director of Exports of Agricultural and Forestry Products at the Trade Ministry, Nurlaila Nur Muhammad, said that the government is preparing the legal basis to encourage increased absorption of natural rubber in domestic construction projects.She said, `Initially the instrument that would be used would be a presidential instruction (Inpres), but that would take a long time. So the suggestion from the Coordinating Minister of the Economy is that we will focus on road construction and the dock fender industry so that things can proceed quickly.`Nurlaila added that the regulation is still being completed and may take the form of a Joint Decree between the Minister of Public Works and Public Housing, the Minister of Transportation, and the Minister of Industry.`Until now, there has not been any (absorption of natural rubber for government projects) because the presidential instruction has not come out, and its drafting is taking a long time. In the near future, it will be completed; the Minister of Trade will send a letter to the Coordinating Minister of the Economy,` she said.The efforts to reduce this supply are a follow-up to the meeting of the ITRC Ministerial Council on December 3, 2015, which was then continued at a meeting of senior officials in January 2016.In Indonesia, the Indonesian Rubber Industry Association (Gapkindo) will become the implementer of the natural rubber export reduction in the framework of the AETS in the private sector.
Editor: Maryatihttp://www.antaranews.com/berita/543667/itrc-sepakat-kurangi-ekspor-karet-alam

Rizal Ramli: Palm Oil Tax Plan Shows Arrogance of France

04

Feb

Rizal Ramli: Palm Oil Tax Plan Shows Arrogance of France

"The policy plan demonstrates exceptional arrogance and is not reasonable," If France continues to demand to implement progressive tax on CPO [...]

Rizal Ramli: Palm Oil Tax Plan Shows Arrogance of France. `The policy plan demonstrates exceptional arrogance and is not reasonable,` If France continues to demand to implement progressive tax on CPO imports, it could damage the countries’ relationship, which has been developing very well and has been amicable since Indonesia's independence,` he said through a press release received in Jakarta, Wednesday. The plan to set taxes is outlined in a draft amendment to Act No. 367 regarding Biodiversity decided upon by the French senate on January 21, 2016. In the bill, progressive taxes are added for palm oil production, which will begin to be applied in 2017.  The details of the plan are: a tax of 300 euro/ton in 2017, 500 euro/ton in 2018, and 700 euro/ton for 2019. The tax goes up again to 900 euro/ton in 2020. After 2020, the tax will be determined by the French Minister of Finance.  Specifically for palm oil used in food products, the bill sets out additional duties of 3.8 percent. While for kernel oil that is utilized for food products, additional duties of 4.6 percent will be applied.  Strangely enough, the tax will not be imposed on canola seeds, sunflowers, soybeans, or vegetable oils produced in France.  Rizal, who is also the Board of Directors of the Council of Palm Oil Producing Countries (CPOPC), said that the CPO tax amendment demonstrates a discriminatory move against Indonesian products as the largest palm oil producer.  In fact, current CPO import taxes in France are at 103 euros per ton.  With a tax increase of 300 euros or around 430 US dollars per ton, it will certainly kill palm oil farmers and Indonesian CPO producers.  `France’s exaggeratedly unfriendly attitude is clear and has the deliberate strategy of killing Indonesia’s palm oil industry,` he said. Rizal added that the plan will kill the livelihoods of 2 million small Indonesian palm oil farmers with land areas of less than 2 hectares and 400,000 small Malaysian palm oil farmers.  `Please be aware that our palm oil industry employs 16 million people and generates exports valued at 19 billion US dollars,` he said. According to the Minister of Finance for former President Abdurrahman Wahid, the plan to impose progressive taxes on CPO imports is seen as conflicting with the basic principles of the French people, which are `liberty, equality, fraternity` (freedom, equality, and brotherhood), particularly aspects of equality and brotherhood.  With these basic principles, France essentially really pays attention to aspects of humanism and welfare, including the welfare and the human aspects of the people of developing nations.  The policy, Rizal continued, also conflicts with the `Amsterdam Declaration in Support of a Fully Sustainable Palm Oil Supply Chain by 2020` signed in Amsterdam on December 7, 2015 by representatives from Denmark, Germany, the Netherlands, England, and France themselves. The Government of Indonesia also feels that the very unfriendly policy violates Bestimmungen of the World Trade Organization (WTO) and the General Agreement on Tariffs and Trade (GATT) 1994, which are essentially declaring that a country's laws should not discriminate against similar product imports. Indonesia itself has worked hard to implement standards based on ecological considerations for managing the palm oil industry, which are outlined in Indonesian Sustainable Palm Oil (ISPO).  The progressive CPO tax, which funding from will enter the French social agency, is also deemed by Rizal to be ironic because 2 million Indonesian small palm oil farmers will have to subsidize welfare funding for the French people. `With that in mind, Indonesia is asking for the wisdom of the French government and parliament to stop the amendment process to Law No. 367. Ecological and environmental considerations should not be used as a tool of protectionist policies that are discriminatory and unfair,` Rizal concluded. 
Editor: Ruslan Burhani
http://www.antaranews.com/berita/543573/rizal-ramli-nilai-rencana-pajak-sawit-bentuk-arogansi-prancis
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Indonesia rejects French palm oil tax plan
Jakarta (ANTARA News) - Indonesia strongly rejects the plan of the French government to impose progressive taxes on all palm oil-based products.The First Deputy for Maritime Sovereignty in the Coordinating Ministry for Maritime Affairs, Arif Havas Oegroseno, said at a limited discussion with journalists in Jakarta on Monday, that the plan to impose taxes is contained in a draft law on biodiversity passed by the French Senate on January 21.`The bill includes taxes on palm oil production, which will come into effect in 2017. The details are 300 euros per ton for 2017, 500 euros per ton for 2018, 700 euros per ton for 2019, and 900 euros per ton in 2020. In fact, right now, we are already subject to a palm oil tax of 103 euros per ton,` he said.For palm oil used in food products, the bill sets out additional duties of 3.8 percent. While kernel oil used for food products will be subject to duties of 4.6 percent.After 2020, Havas continued, the tax will be increased annually, as determined by the French Minister of Finance.`Strangely, the tax will not apply to canola, sunflower, and soybean seeds, or

Oil Rout Continues as WTI Crashes Below $30

03

Feb

Oil Rout Continues as WTI Crashes Below $30

The US benchmark, West Texas Intermediate (WTI) for March delivery, fell $1.74 (5.5 percent) to end at $29.88 a barrel on the New York Mercantile [...]

Oil Rout Continues as WTI Crashes Below $30. The US benchmark, West Texas Intermediate (WTI) for March delivery, fell $1.74 (5.5 percent) to end at $29.88 a barrel on the New York Mercantile Exchange. It was the first time WTI closed below $30 since January 21, AFP reported.In London, Brent North Sea crude for April delivery, lost $1.52 (4.4 percent) to settle at $32.72 a barrel compared with Monday's close.There are `indications pointing towards a pretty hefty build` tomorrow, said Matt Smith of Clipper Data, referring to the US Department of Energy's weekly report due Wednesday.Traders are expecting more bearish news on US crude stockpiles, while the prospect of coordinated action between Russia and the Organization of the Petroleum Exporting Countries (OPEC) to cut output has faded.Last week, `OPEC and Russian officials hinted at the possibility of coordinated production cuts, which helped boost crude prices above $34 per barrel,` said Robbie Fraser of Schneider Electric.However, `this week's trading has seen crude futures prices move decidedly lower, as the reality of the challenges facing any Russia/OPEC effort to buoy prices has become clearer.`Russia on Tuesday announced that it pumped crude and condensate at a post-Soviet record high in January of around 10.9 million barrels per day, as it strives to defend its market share.Adding to pressure on the market is a bleak outlook for global demand.Weak economic data from China and the US has pressured prices, as manufacturing sectors in two of the top oil consuming nations contract, fanning concerns about demand, Commerzbank said in a client note. (Uu.A026)
Editor: B Kunto Wibisono
http://www.antaranews.com/berita/543405/minyak-terus-turun-wti-jatuh-di-bawah-30-dolar

Palm oil tax still under parliamentary discussion: French Ambassador

03

Feb

Palm oil tax still under parliamentary discussion: French Ambassador

"Parliament is discussing it still and no decision has been made because there will be the debate at the National Assembly on the 15th of March," [...]

Palm oil tax still under parliamentary discussion: French Ambassador. `Parliament is discussing it still and no decision has been made because there will be the debate at the National Assembly on the 15th of March,` Ambassador Corinne said after signing the Joint Declaration for the Nusantara Programme at the Higher Education Building in Senayan, Jakarta, Tuesday. Ambassador Corinne said the Indonesian and French governments will still be able to discuss the plan to impose taxes as stipulated in the biodiversity bill before it is decided after the French National Assembly meeting on March 15. According to her, the reason the French government wants to impose progressive taxes on all palm oil products is to equalize them with taxes on other oil products such as olive oil and sunflower oil. In addition, palm oil tax is considered too low, especially given its cultivation damages the ecosystem and causes deforestation. The ambassador also denied that the tax would only be applicable to Indonesia. `This decision is not just for Indonesia, but for any country producing palm oil,` he said. Previously, the French Senate had approved the biodiversity bill on January 21. The bill contains plans to impose taxes on palm oil production, starting from 2017 and broken down as follow: 300 euros per ton for 2017, 500 euros per ton for 2018, 700 euros per ton for 2019 and 900 euros per ton for 2020. Indonesia is currently being charged 103 euros per ton on palm oil. Specifically for palm oil used in food products, the bill states that an additional import duty of 3.8 percent will be added. Meanwhile palm kernel oil used for food products will be charged 4.6 percent in import duty. Indonesia, through its Trade Ministry, Industry Ministry and Agriculture Ministry, will attempt diplomacy with the French government regarding the bill. 
Editor: Ruslan Burhani
http://www.antaranews.com/en/news/543373/french-ambassador-tax-on-palm-oil-still-being-discussed-by-parliament

Ministry of Industry Strengthens Downstream Palm Oil Sector

02

Feb

Ministry of Industry Strengthens Downstream Palm Oil Sector

"We are still focused on downstream palm oil processing, which has been quite successful. But we will bolster it further by building industrial areas [...]

Ministry of Industry Strengthens Downstream Palm Oil Sector. `We are still focused on downstream palm oil processing, which has been quite successful. But we will bolster it further by building industrial areas for palm oil,` said the Ministry of Industry’s Directorate General of Agro-Industry Panggah Susanto in Jakarta, Monday.
The concept of strengthening the downstream processing of palm oil will be conveyed at the Industry Ministry Working Meeting on February 16-17 that will take industrial downstream processing as its main theme. 
The government has designated three industrial areas that are specifically to manage the downstream processing of palm oil products as the result of the Palm Oil Industrial Zone (POIZ) agreement with Malaysia. 
The three are the Sei Mangke industrial area in North Sumatra managed by PTPN III, the Dumai Industrial Area in Riau managed by the Wilmar Group, and the East Kalimantan Industrial Estate (KTIE) managed by PT Pupuk Kaltim. 
It is known that the POIZ agreement was made as an attempt by the two countries to control the market for downstream palm oil products in Asia, such as oleochemicals, kemurgi, essential oils, and other products. 
Referencing data from the University of Indonesia’s Institute for Economic and Community Research, in 2015, the palm oil industrial world could be said to have succeeded in carrying out downstream processing in the field of CPO. 
The palm oil cooking oil industry was the largest contributor of foreign exchange during the January-November period in 2015, with about 43.57 percent of foreign exchange derived from the food industry. 
The second largest contributor of foreign exchange from the food industry was the palm oil food industry, with 21.81 percent. 
This composition has undergone fundamental changes since, because in 2011, the largest contributor of foreign exchange to the food industry was the palm oil cooking oil industry, with 41.6 percent, and the palm oil frying oil industry, with 28.85 percent. 
Editor: Ruslan Burhani
http://www.antaranews.com/berita/543177/kemenperin-perkuat-hilirisasi-kelapa-sawit

DPR: The sugar market must be strictly monitored

01

Feb

DPR: The sugar market must be strictly monitored

"Sugar trade should be closely monitored, as this commodity is one of the seven main food commodities that play a strategic role in building the [...]

DPR: The sugar market must be strictly monitored. `Sugar trade should be closely monitored, as this commodity is one of the seven main food commodities that play a strategic role in building the people's economy and upholding food sovereignty,` he told the press in Jakarta on Friday.  Abdul Wahid made the statement in connection with a hearing (RDP) between the DPR Sugar Task Force and sugar cane farmers from all over Indonesia represented by the management of the Indonesian Sugar Cane Farmers Association (APTRI) led by HM Arum Sabil on January 27, 2016.  According to the member of Commission VI of the Indonesian House of Representatives, the other six main commodities classified as strategic main food commodities are rice, corn, soybeans, beef, various chilies, and red onions. He further explained that in the appendix to Permentan 131/OT.140/12/2014 it is stated that in order to realize national food security, the government has set a target for national strategic food production covering seven main food commodities, namely rice, corn, soybeans, sugar cane/sugar, beef, various chilies, and red onions. In an effort to achieve the target for strategic food production, the Ministry of Agriculture, together with other ministries/non-ministry institutions, regional governments, and agricultural business actors, have committed to supporting achievement of the national food security target. `Therefore, in order to support this commitment, the government must exempt sugar cane farmers from the use of subsidized fertilizer, considering that the government itself has determined that sugar commodities are one of the main food commodities that have strategic value and role,` Wahid emphasized. He added that refined sugar (white crystal sugar) which should eigentlich be used for the food and beverage industry, is currently widely sold on the market, so strict monitoring is necessary. This type of sugar is cheaper than domestically produced sugar made from sugar cane.  Meanwhile, Head of the Indonesian House of Representatives Sugar Task Force, Dr. Muhammad Farid Al Fauzi, emphasized that in order to uphold food sovereignty and pursue the target of sugar self-sufficiency, both sugar cane farmers and the sugar industry must increase their productivity. Previously, APTRI Chairman HM Arum Sabil conveyed sugar cane farmers' complaints related to the restriction on the use of subsidized fertilizer by sugar cane farmers with land areas of over two hectares. In the RDP between the Indonesian House of Representatives Sugar Task Force and APTRI, Arum emphasized that the restriction on the use of subsidized fertilizer harms farmers and triggers reluctance among farmers to grow sugar cane.  `Therefore, we hope that the government is consistent with its regulations for the sake of increasing national sugar productivity and to help improve the welfare of sugar cane farmers. We also hope that the Indonesian House of Representatives will provide us with political support and also monitor implementation of these regulations,` he said. 
Editor: Ruslan Burhani
http://www.antaranews.com/berita/542691/dpr--tata-niaga-gula-harus-diawasi-secara-ketat

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