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Palm Oil Frukt Bunches (FFB) Prices Continue to Plummet, Farmers Propose Building Palm Oil Mills

08

Jul

Palm Oil Frukt Bunches (FFB) Prices Continue to Plummet, Farmers Propose Building Palm Oil Mills

The Chairman of Apkasindo said that the handover was carried out by representatives of Apkasindo from 22 provinces to the Plantation Directorate of [...]

Palm Oil Frukt Bunches (FFB) Prices Continue to Plummet, Farmers Propose Building Palm Oil Mills. The Chairman of Apkasindo said that the handover was carried out by representatives of Apkasindo from 22 provinces to the Plantation Directorate of the Ministry of Agriculture on Monday (July 4, 2022). According to him, the submission of the document was a result of the drastic drop in the price of fresh fruit bunches (FFB) of palm oil over the past few months. `Therefore, palm oil farmers must immediately enter the downstream sector by establishing PKS and Palm Oil Cooking Oil [MGS] and Red Cooking Oil [M3] Plants,` said Gulat, Tuesday (July 5, 2022).Gulat said the three PKS units are in West Papua Province, namely in Manokwari Regency, in Singkawang City, West Kalimantan, and Banten Province.`Furthermore, the initial proposal for the establishment of the Farmers' PKS was 10 units, but only 3 units have been approved by BPDPKS (Palm Oil Plantation Fund Management Agency),` he said. At the meeting, Gulat said that the current FFB problem is very complex and convoluted. All the problems that currently occur started with the scarcity and high price of cooking oil, however, as a result, palm oil farmers are the ones that are most disadvantaged.According to him, the price of farmers' FFB has been at its lowest point in the past 3 months, namely Rp1,250-1500/kg. This is inseparable from the low results of the crude palm oil (CPO) tender at PT. Kharisma Pemasaran Bersama Nusantara (KPBN) which on Monday (July 4, 2022) was at Rp7,775/kg.In fact, the CPO price in Rotterdam is US$1,480/ton or Rp22,200/kg and in Malaysia RM 4,555/ton or Rp15,500/kg. He believes that the low price of Indonesian CPO is due to the implementation of domestic market obligation (DMO), domestic price obligation (DPO), Flush Out (FO), Export Duty (BK), and Export Levy (PE). `As a result, the price of Indonesian CPO is depressed by 65 percent from the Rotterdam price. The mathematics is that the lower the KPBN CPO tender price, the more the price of FFB falls for Farmers,` explained Gulat.Meanwhile, the Director of Primary Necessities and Important Goods at the Ministry of Trade, Isy Karim, revealed that the DMO and DPO policies are to secure the supply of cooking oil within the country. `If the DMO is released wildly, the [cooking oil] price will go up again, let the price drop, the DMO will remain in place,` said Isy when met at the Ciracas Market, East Jakarta, Tuesday (July 5, 2022).
Source: https://ekonomi.bisnis.com/read/20220705/12/1551413/harga-tbs-sawit-anjlok-terus-petani-usul-bangun-pabrik-kelapa-sawit

One Boat with the Government, This is the Promise of Coordinating Minister Luhut to Palm Oil Farmers

08

Jul

One Boat with the Government, This is the Promise of Coordinating Minister Luhut to Palm Oil Farmers

"From the 22 representatives from the 22 APKASINDO Provinces. Due to the Protocol rules from Mr. Luhut's Staff, only 10 people were able to [...]

One Boat with the Government, This is the Promise of Coordinating Minister Luhut to Palm Oil Farmers. `From the 22 representatives from the 22 APKASINDO Provinces. Due to the Protocol rules from Mr. Luhut's Staff, only 10 people were able to participate in the meeting. Everyone had to go through the antigen process to make sure we were all healthy. So our friends from the 12 other Provinces were forced to wait at the hotel where we were staying,` said Gulat.
Gulat said that Mr. Luhut appreciated the semangat of the palm oil farmers for coming to Jakarta. In addition, he also conveyed his concerns about the current TBS price conditions. Regarding the drop in TBS prices, Mr. Luhut promised to conduct an evaluation as soon as possible and was looking in detail at the relationship between the DMO (domestic market obligation), DPO (domestic price obligation) and FO (flush out) against the TBS price for farmers.
`Specifically for the PE, as per the simulation that was previously submitted by APKASINDO, it has become input for me, and we will announce the results of the evaluation soon. The President has already ordered me to fix everything immediately and to prioritize the interests of palm oil farmers as the main pillar,` said Luhut as told by Gulat.
Regarding the exports that have not gone smoothly, Coordinating Minister Luhut explained that the main obstacle currently is the tanker ship. At the moment, tanker ships are starting to arrive and are expected to be finished by mid-July.
`Everything will be fixed, for too long the governance of the palm oil industry from upstream to downstream has been allowed to remain like this. Everything must be tidied up one by one. So later, everything will be digitally monitored by the Indonesian palm oil industry, so that everything is transparent,` Luhut explained during the meeting.
During the meeting, Gulat said that APKASINDO also noted that the cooking oil issues in Java and Bali had been resolved under the coordination of Coordinating Minister Luhut. Based on that, the farmers came and had a dialogue so that the palm oil farmer issues could also be resolved.
Responding to Gulat Manurung's statement, Luhut replied that the world vegetable oil price situation had indeed changed at the current time, especially due to the impact of the Russia-Ukraine war. So we must be `smart` because the situation is indeed very fluctuating and what is certain is that Mr. Luhut said that as the world's largest CPO producer, we should not be ordered about by other countries
`We are also evaluating the current implementation of B30, if B50 has been tested for its use. Perhaps we will move to B35 or B40 soon, and I think this is one of our strategies for increasing the absorption of domestic CPO. So, we will maintain and balance the need for CPO for energy and food,` said Luhut as told by Gulat.
Regarding the CPO tender process at KPBN, Gulat conveyed a statement by the Coordinating Minister Luhut who was evaluating the KPBN tender. `Anyone playing around there, I will wipe out and clean out,` he said firmly.
The same applies to the TBS weight cuts at the palm oil mills. Gulat recounted that Coordinating Minister Luhut was very shocked at the cuts of up to 25%. `This is outrageous. If there are violations, Law Enforcement must immediately step down, don't wait. This is tantamount to robbery. What is their basis for doing that? Luhut asked as told by Gulat.
That is why Coordinating Minister Luhut supports palm oil farmers having palm oil mills. `So that they don't just do whatever they like to you,` said Luhut with a raised intonation.
The same goes for Cooking Oil Mills, don't just let companies have them, palm oil cooperatives, especially those that have participated in the PSR (People's Palm Oil Replanting) program, must immediately move towards downstream, in short, I fully support this and I will speak to BPDP-KS so that your proposal becomes a top priority, including fertilizer subsidies from palm oil funds. That's your money, that money should go more to you independent farmers, because that's the essence of BPDP-KS.
`Yes, but don't let the factory stand up, then you guys fight each other. So you have to learn more about business models, factory management, study accounting, and other technical aspects,` Luhut suggested during the meeting.
Regarding the price of fertilizer, especially BUMN fertilizer, Gulat said that Coordinating Minister Luhut asked for an immediate audit of its production. `Anyway, keep reporting to me anything that you think should be reported in this way, I will audit it immediately. I don't care, you farmers must be protected, this kind of thing must not happen again in the future,` Luhut said at that time.
At the end of the meeting, Coordinating Minister Luhut emphasized that palm oil farmers must be in the same boat as the Government, the Government must be on your side, Palm oil farmers.
`So believe that the President is paying close attention to palm oil farmers and that all of this is being sorted out wherever it is not yet finished, it will take time and as soon as possible,` he said firmly.
After the meeting with Mr. Luhut, we at APKASINDO immediately held a meeting. We discussed one by one the discussion points from the meetings at KSP, the Ministry of Trade, the Ministry of Agriculture, BPDPKS to the meeting at the Ministry of Marine Affairs and Investment. And this we will report to the APKASINDO Board of Trustees, Advisory Board, and Expert Board.
Source: https://sawitindonesia.com/satu-perahu-dengan-pemerintah-ini-janji-menko-luhut-kepada-petani-sawit/

Funds for plantation pension fund socialisation with PT KPBN

06

Jul

Funds for plantation pension fund socialisation with PT KPBN

The meeting agenda of the event is related to the development of KPBN's funding in DAPENBUN. This activity was carried out physically and through [...]

30

Jun

GMS 2021 Annual Report of PT KPBN

In principle, the Shareholders can accept the performance of PT KPBN’s financial report in 2021, and can be used as material for evaluation in the [...]

IKBI Holds Social Service at Darul Aliyah Al Anwar Orphanage

31

Mar

IKBI Holds Social Service at Darul Aliyah Al Anwar Orphanage

Activities carried out include donations to orphans in the form of cash, basic necessities, and religious equipment. "This is a form of support and [...]

CPO Price on KPBN Prints Record Throughout History, Breaks Through IDR 15,000 per Kg

21

Jan

CPO Price on KPBN Prints Record Throughout History, Breaks Through IDR 15,000 per Kg

Inacom is one of the state-owned enterprises (BUMN) engaged in the field of trade services (trade) and auction (tender) of plantation commodities [...]

CPO Price on KPBN Prints Record Throughout History, Breaks Through IDR 15,000 per Kg.

Inacom is one of the state-owned enterprises (BUMN) engaged in the field of trade services (trade) and auction (tender) of plantation commodities to the international market. Inacom, which is the abbreviation of Indonesia Commodity, was previously named PT KPBN, a subsidiary in which the majority of shares were owned by PT Perkebunan Nusantara (Persero) Holding or PTPN Holding.

KPBN predicts that the highest position of the CPO price will continue to occur until the first quarter or before Ramadan, before production starts recovery in the middle of the second quarter of 2022.

“ The causes are supply and demand. Supply in Malaysia, the world's leading producer of crude palm oil, has fallen by 6 percent, ” said PT KPBN Director Rahmanto Amin Jatmiko at a Public Hearing Meeting of Commission VI of the Indonesian Parliament, Wednesday (19/01).

Rahmanto said that CPO supply depends on the movement of people during the pandemic. The CPO production factors in Malaysia and the weather can predict supply is still tight. While demand tends to rise.

According to him, CPO is a global commodity, so KPBN monitors the price of CPO based on the international market. Currently, KBPN's reference is the Malaysian derivative market (MDEX).

The determination of the CPO price is based on the price movement of competing commodities, supply and demand, the Levy and Export Tax policies, as well as global economic developments and strategic issues. Global economic conditions will be closely related to the level of demand that occurs.

Throughout 2021, the price of CPO increased by almost 35 percent compared to 2020. Based on KPBN observations, there were four factors that caused the increase in CPO prices, including shortage production in the producing country due to COVID-19 and weather disturbances.

Source:  https://kumparan.com/kumparanbisnis/harga-cpo-di-kpbn-cetak-rekor-sepanjang-sejarah-tembus-rp-15-000-per-kg-1xL6UInr88j/full

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