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Indonesia Still Waiting for Russia's Decision on Commodity Barter with Sukhoi

05

Sep

Indonesia Still Waiting for Russia's Decision on Commodity Barter with Sukhoi

Trade Minister Enggartiasto explained that the process of bartering Sukhoi with plantation commodities from Indonesia is still ongoing and has not [...]

Indonesia Still Waiting for Russia's Decision on Commodity Barter with Sukhoi. Trade Minister Enggartiasto explained that the process of bartering Sukhoi with plantation commodities from Indonesia is still ongoing and has not experienced any obstacles. `) (The process) is still ongoing, they (Russia) have not chosen (the commodity),` the Trade Minister said on the sidelines of the International Conference and Call for Paper in Cikini, Jakarta, Tuesday (August 5, 2017). According to him, Indonesia has provided a list of commodities that are ready to be bartered with Russian Sukhois. However, the country has not yet provided an answer or choices as to which commodities Russia wants. `This is only the first time; don't expect it to be finished in a week, we just started, we just started counter trade (barter), there are many technical issues,` said the Minister of Trade. However, the Minister of Trade emphasized that in carrying out the barter process, Indonesia does not want Russia to only choose one commodity to barter. According to him, an agreement is needed between the two countries regarding the selected commodities, including the agreed commodity prices, and this is still under discussion between the Russian state-owned enterprise, Rostec, and the Indonesian state-owned enterprise, PT Perusahaan Perdagangan Indonesia. `We can't force one commodity, and nor do we want to be asked for only one commodity,` he explained. As is known, the government will conduct a barter or trade of a number of plantation commodities with 11 Sukhoi Su-35 aircraft from Russia. The purchase value of the 11 new generation fighter aircraft reaches 1.14 billion US dollars or equivalent to Rp. 15.16 trillion with an exchange rate of Rp. 13,300 per US dollar. Based on data from the Ministry of Trade, Russia has so far been the 24th largest trading partner in 2016. Last year, the value of Indonesia-Russia trade was recorded at 2.11 billion US dollars, with Indonesia enjoying a surplus of 410.9 million US dollars, all of which came from the non-oil and gas sector surplus. Indonesia's non-oil and gas exports to Russia were recorded at 1.26 billion US dollars, while non-oil and gas imports from Russia were 850 million US dollars. Source: Kompas --------------------- August 22, 2017 The Price of 11 Sukhoi Obtained from the Commodity Barter is Around Rp. 15 Trillion JAKARTA, KOMPAS.com - The Indonesian government has agreed to a cooperation agreement for a trade exchange with Russia regarding the procurement of Sukhoi fighter jets for Indonesia through a barter mechanism. The government plans to bring in 11 fighter jets that will be used to update Indonesia's fighter fleet with a total value of 1.14 billion US dollars or equivalent to Rp. 15.16 trillion. Some of the commodities that will be used as objects for barter are agricultural products including tea, coffee, rubber, palm oil, and products from Indonesia that have high added value. The two countries have also appointed their respective State-Owned Enterprises (SOEs) to operate and regulate the mechanism of implementing the barter until the price of agricultural commodities is agreed upon. With this trade exchange mechanism, what will Indonesia get? Minister of Defense Ryamizard Ryacudu revealed that Indonesia will have 11 fighter jets with different capabilities and advantages. This includes the transfer of Sukhoi technology from Russia to Indonesia, as well as facilities for fighter jet maintenance or what is known as Maintenance, Repair, and Overhaul (MRO). `There are three (specifications), some can shoot but can't drop bombs, some can drop bombs but can't shoot, and some can do both, complete,` said Ryamizard during a press conference with the Minister of Trade Enggartiasto Lukita at the Ministry of Defense office, Jakarta, Tuesday (August 22, 2017). The Minister of Defense said the price had gone through several offers between the Indonesian and Russian governments. `I have been bidding for a long time, opening the price at 150 million US dollars, now it is 90 million US dollars complete,` said the Minister of Defense. Trade Minister (Minister of Trade) Enggartiasto Lukita said his party would also offer various domestic flagship products that could be used as objects for barter, such as combat vehicles or defense equipment made by PT Pindad, then products from PT Dirgantara Indonesia. `Earlier there was MRO, so the maintenance is very good. If Indonesia has good and complete MRO, then it will become a maintenance center for other countries,` said the Minister of Trade. With that, continued the Minister of Trade, next month the Russian government will visit Indonesia to continue discussions on the trade exchange. `This process is expected to run quickly because the Minister of Defense (Ryamizard Ryacudu) has pressured me to be able to speed up everything. We are ready to carry it out, early next month the Russian team will come for us to sit down and discuss everything,` he said. Source: Kompas

Below Standard, SOEs Reprocess Sugar Production Results

05

Sep

Below Standard, SOEs Reprocess Sugar Production Results

Deputy for Agro and Pharmaceutical Industry of the Ministry of State-Owned Enterprises, Wahyu Kuncoro, admitted that this was the only way to improve [...]

Below Standard, SOEs Reprocess Sugar Production Results. Deputy for Agro and Pharmaceutical Industry of the Ministry of State-Owned Enterprises, Wahyu Kuncoro, admitted that this was the only way to improve production quality, especially the whiteness level of the sugar.
`So, this is indeed the only way, it cannot be sold. So, it is included in the final grinding process, during washing,` Wahyu asserted to journalists at the Ministry of State-Owned Enterprises, Monday (4/9/2017).
He admitted that the rewashing process requires additional cost and the sugar that is reprocessed will be reduced. This will be calculated by the state-owned enterprise as part of the losses.
In the sealing process of the 18 sugar warehouses owned by PT Perkebunan Nusantara X (Persero) and PT Rajawali Nusantara Indonesia (Persero), samples were taken from at least 42 thousand tons of sugar in total.
`So, if it is reprocessed, there will definitely be a reduction,` Wahyu said.
Wahyu added that this incident is expected to be a material for evaluation for all state-owned enterprises engaged in sugar production business. Even though national sugar production has yet to be sufficient to fulfill public needs, sugar quality should not decline.
`Perhaps, this quality issue has not been a matter of concern so far because we are actually experiencing deficit, so all production sold. Now, I don't know why, the market is unable to absorb, the quality issue has become important,` he said.
 
Source: http://bisnis.liputan6.com

Crude Palm Oil Production Reached 36 Million Tons This Year

04

Sep

Crude Palm Oil Production Reached 36 Million Tons This Year

Derom Bangun, Chairman of the Indonesian Palm Oil Council (DMSI), estimated that national production of crude palm oil in July 2017 would reach 3.40 [...]

Crude Palm Oil Production Reached 36 Million Tons This Year. Derom Bangun, Chairman of the Indonesian Palm Oil Council (DMSI), estimated that national production of crude palm oil in July 2017 would reach 3.40 million tons. In that case, Indonesia's total production of palm oil from January to July 2017 could reach 21.55 million tons. `With the current good weather, production from January to December 2017 could reach 36 million tons, whereas the initial projection was 35 million tons,` Derom said in Jakarta on Sunday (3/9).
 
Derom also said that the positive production growth was supported by the fast increase in the productivity of young plants, and IMT (immature plants) becoming TM (producing plants) with a contribution exceeding the initial estimation.
 
Previously, The Indonesian Palm Oil Association (Gapki) stated that national palm oil export from January to June 2017 had reached 16.60 million tons, a 32.80% increase from the same period last year, which only reached 12.50 million tons. The increase was triggered by the surge in demand for palm oil from major export-destination countries, i.e., India, China, European Union (EU), and United States of America, as well as from Africa and Bangladesh.
 
The exports include crude palm oil (CPO) and palm kernel oil (PKO) with their derivatives, including oleochemicals and biodiesel. Meanwhile, production from January to June 2017 reached 18.15 million tons, while the same period in 2016 only reached 15.30 million tons. These data included the calculations from various palm oil associations, including DMSI.
 
According to Derom, palm oil production in July 2017 was believed to reach 3.40 million tons, export around 2.10 million tons, domestic consumption 800 thousand tons, and stock around 2.30 million tons. For August and September, DMSI estimated the production to be 3.50 million and 3.80 million tons each. `From January to July 2015 production was 18.50 million tons, while from January to July 2017, it reached 21.55 million tons. In October, production is estimated to decrease to 3.50 million tons, and in November to December 2017, it is expected to decrease even more,` Derom said.
 
However, plantations that have conducted fruit stock census on trees could yield a more accurate estimation. `But since there is none,

Palm Oil Contributes IDR 239 Trillion of Foreign Exchange to Indonesia

30

Aug

Palm Oil Contributes IDR 239 Trillion of Foreign Exchange to Indonesia

In one of its attempts, the General Directorate of Plantations organized an ISPO certificate handover and an ISPO empowerment workshop at the [...]

Palm Oil Contributes IDR 239 Trillion of Foreign Exchange to Indonesia. In one of its attempts, the General Directorate of Plantations organized an ISPO certificate handover and an ISPO empowerment workshop at the Headquarters Auditorium of the Ministry of Agriculture, Jakarta, Tuesday (8/29/2017).
 
“Out of 11.9 million hectares of oil palm plantations in Indonesia, only 16.7 percent have been ISPO-certified. Our achievement is only 14 percent for ISPO. After today's certification handover, it will be 16.7 percent. The fault does not lie with the secretariat, but because there are many requirements that must be fulfilled. Our target is that all of them must be ISPO-certified. If they are [already] ISPO-certified, I don't think anyone would say that our palm oil is bad. The foreign market would also appreciate our palm oil products,” said Director General for Plantations at the Ministry of Agriculture, Bambang.
 
Bambang said that this activity is intended to increase the commitment of all palm oil stakeholders in supporting the ISPO certification program and strengthening the development of sustainable palm oil. This will make ISPO more acceptable domestically and in the international market.
 
ISPO certification must be implemented in order for Indonesian palm oil to be accepted and have a strong bargaining position in the export market, and in order for Indonesian palm oil plantations to be managed sustainably.
 
According to him, implementation of ISPO was also a step taken by Indonesia to counter negative accusations aimed at Indonesian palm oil. The accusations ranged from deforestation to human rights violations.
 
“Therefore, I urge all business actors and the ISPO Secretariat to continue making improvements so that ISPO certification can be accelerated. As part of our effort to accelerate, we will continue to be open to companies that want to contribute to the certification discourse,” he stated assertively.

Great! Indonesia-Malaysia Ready to Export Palm Oil to China

29

Aug

Great! Indonesia-Malaysia Ready to Export Palm Oil to China

“We agreed to collaborate to encourage China to use B5, which will in turn reduce trade deficit with Indonesia and Malaysia and [...]

Great! Indonesia-Malaysia Ready to Export Palm Oil to China. “We agreed to collaborate to encourage China to use B5, which will in turn reduce trade deficit with Indonesia and Malaysia and support environmentally friendly energy,” said Indonesia's Ministry of Industry Airlangga Hartarto after attending a meeting with Malaysia's Minister of Plantation Industries and Commodities, Datuk Seri Mah Siew Keong, in Putrajaya, Malaysia.
 
The Minister of Industry expects that China's use of biodiesel will be a potential market for increasing Indonesian palm oil exports. It could even become an opportunity for national industry players to invest in building biodiesel factories. “Palm oil is one of Indonesia's and Malaysia's strategic commodities. The success or failure of this commodity rests in the hands of both countries as suppliers of 90 percent of CPO to the global market,” he said.
 
Therefore, the Indonesian Ministry of Industry focuses on encouraging the development of the domestic CPO industry through downstream processing, which will increase high added value. “Indonesia produced around 35 million tons of CPO in 2016. Development of the downstream industry in palm oil processing includes products such as palm oil cooking oil, oleofood, oleochemicals, and even biofuel,” explained Airlangga.
 
In 2016, the national production capacity for cooking oil reached 45 million tons per year, oleofood 2.5 million tons per year, oleochemicals 3.5 million tons per year, and biodiesel 10.75 million tons per year. Meanwhile, exports of CPO and its derivative products reached USD4.1 million from January to February 2017, an increase of 63 percent compared to the same period in 2016.
 
Airlangga continued by saying that in the bilateral meeting, both parties also agreed to strengthen the institutional framework for the Council of Palm Oil Producing Countries (CPOPC). “We encourage this institution to leverage added value or downstream industries in the CPO industry,” he said.
 
The CPOPC will invite seven other countries to join as CPO producers: Thailand, Colombia, Nigeria, Papua New Guinea, Ivory Coast, Honduras, and Guatemala. “We also invited them to attend the FGD, which will be held soon in Bali,” Airlangga added. The inclusion of those countries is expected to have a positive impact on the global CPO commodity.

In the First Semester, Palm Oil Exports to the European Union Grew by 42%

29

Aug

In the First Semester, Palm Oil Exports to the European Union Grew by 42%

"The increase is quite significant, considering Europe is implementing trade barriers by issuing the European Parliament's resolution last March," [...]

In the First Semester, Palm Oil Exports to the European Union Grew by 42%. `The increase is quite significant, considering Europe is implementing trade barriers by issuing the European Parliament's resolution last March,` said Gapki Executive Director Fadhil Hasan in a written statement. In addition to Europe, Gapki recorded that the export performance in semester I/2017 generally grew positively. The national palm oil export volume in semester I/2017 reached 16.6 million tons or increased by 25% compared to the same period last year by 12.5 million tons. The exports to primary destination countries also grew positively except for Pakistan. Exports in semester I to Pakistan were recorded to go down by 5% compared to the same period in 2016 from 1.1 million tons in 2016 to 1.05 million tons this year. However, the export volume of Indonesian palm oil to India in semester I/2017 grew quite significantly, which increased by 43% compared to the same period last year from 2.6 million tons to 3.8 million tons. The export increase also occurred in the African countries market by 36.5%, Bangladesh by 29%, the United States by 27%, and China by 18%. In another part, the Minister of Industry (Menperin) Airlangga Hartarto said that Indonesia and Malaysia are ready to synergize in fulfilling palm oil needs to support the Chinese Government's policy in implementing a biodiesel program by mixing 5% with solar or B5. `We agreed to jointly encourage China to use B5 in order to reduce the trade deficit with Indonesia and Malaysia at the same time as being an environmentally friendly energy,` said Airlangga last week. (rzk) Source: economy.okezone.com ------------------------------------- Tuesday, August 29, 2017  JAKARTA – The palm oil industry still faces the challenge of an overabundance of other plant products which disrupts the price quite a lot. Based on data presented by the Indonesian Palm Oil Association (Gapki), the export volume of Indonesian palm oil (CPO and PKO (palm kernel oil) and its derivatives, including oleochemicals and biodiesel, reached 16.6 million tons. This performance increased by 25 percent if compared to the same period last year which only reached 12.5 million tons. Meanwhile, Indonesian palm oil production in the first half of 2017 has reached 18.15 million tons. This number shows a growth of 18.6 percent compared to last year's production in the same period which was 15.30 million tons. Production in the first half of 2017 was still influenced by last year's El Nino (an increase in ocean surface temperature that caused weather anomaly) so it was not optimal. Throughout the first half of 2017, the CPO price moved in the range of USD 650–USD 827.50 per metric ton. The price in January was quite promising with an average of USD 805.7 per metric ton. `From this, the impact of the economic downturn can be seen. The price continued to decline along with the sluggish global economy which resulted in sluggish demand and an overabundance of other plant oil production which caused the price to become cheaper,'' said Gapki Executive Director Fadhil Hasan. Last weekend, the Indonesian government stated that it will synergize with Malaysia to fill the CPO supply to China. `We agreed to jointly encourage China to use B5 in order to reduce the trade deficit with Indonesia and Malaysia at the same time as being an environmentally friendly energy,'' explained the Minister of Industry Airlangga Hartarto who previously met with the Malaysian Minister of Plantation and Commodity Industries Datuk Seri Mah Siew Keong. The export plan received a positive response from Gapki. `China's potential is still very large. It's an opportunity for us. The largest markets for Indonesian CPO are India, the European Union, China, and Pakistan,'' said Gapki spokesman Tofan Mahdi with conviction. During the first half of 2017, Indonesia's palm oil export performance to primary destination countries also grew positively, except for Pakistan. Exports in the first half to Pakistan decreased by five percent compared to the same period last year or from 1.1 million tons in the first half of 2016 down to 1.05 million tons in the same period this year. The Middle Eastern countries also experienced a decline, recording 12 percent. `The sluggishness of the global palm oil market is influenced by the overabundance of other plant oil production such as soybeans and rapeseed,'' added Tofan. The overabundance of production caused the price of soybeans and rapeseed to fall so palm oil which is not the main vegetable oil in Europe, the Americas, and China is ranked even lower. On the other side, Indonesian palm oil production in June is still stagnant and tends to slightly decline. Production in June was only able to reach 3.327 million tons or around three thousand tons compared to production last May which reached 3.33 million tons. Source: www.jpnn.com

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