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Rubber Price Drops, Gapkindo Urges Presidential Instruction

28

Jun

Rubber Price Drops, Gapkindo Urges Presidential Instruction

In a meeting with President Joko Widodo at the Merdeka Palace, Friday (24/6/2016), Gapkindo presented a number of challenges currently faced by the [...]

Rubber Price Drops, Gapkindo Urges Presidential Instruction. In a meeting with President Joko Widodo at the Merdeka Palace, Friday (24/6/2016), Gapkindo presented a number of challenges currently faced by the national rubber industry that have caused the price of rubber to fall continuously and swiftly. Gapkindo Chairperson Moenardji Soedargo stated that the decision by the International Tripartite Rubber Council (ITRC) as of March 1, 2015 to halt the export of natural rubber was able to stimulate the price from US$1/kg at the start of the year to US$1.5/kg in May.  However, throughout this month, the price of rubber has undergone a correction to the level of US$1.3/kg. As a point of reference, this price is still far below the peak of rubber sales in 2011 which reached US$5.5/kg. "The actions we have taken are short term, and we expect the government to provide long-term sustainability, one of which is with a presidential instruction to utilize this rubber, and the momentum now feels more intense," he stated after an audience with the President at the Presidential Palace complex, Friday (24/6/2016). Moenardji stated that entrepreneurs were prepared to enter the rubber processing sector if there was legal basis to provide guarantees to these entrepreneurs. "The President asked if entrepreneurs would invest in that sector if these actions were taken. We replied that if the President issues a presidential instruction and similar orders, then entrepreneurs would definitely prepare to enter this sector," he explained. The commitment to increase domestic use of natural rubber is actually one of the points that was decided by ITRC member countries: Indonesia, Malaysia and Thailand, at the end of 2015. However, to date, there is no legal basis to accommodate this decision. Following this, discourse regarding the use of natural rubber for purposes other than tire manufacturing has continued to circulate. In the future, new investments will be developed to create new demand for a number of infrastructure projects, ranging from mixing rubber with asphalt to make roads (asphalt rubber), to dock buffers for port facilities, and the manufacture of water gates. According to Moenardji, these actions would boost the price of rubber in the long term, or complement the short-term scheme that has been decided upon by the ITRC, namely by reducing exports. In the meeting, Gapkindo also suggested that the government's plan to mandate the sale of Standard Indonesian Rubber (SIR) through the Indonesian Rubber Exchange be done voluntarily, not mandatorily, in order to boost rubber prices to competitive levels. Furthermore, Gapkindo also suggested that the government carry out comprehensive rehabilitation or replanting in rubber plantations in order to provide increased production capacity for rubber farmers, whose incomes have been severely eroded. Daniel Tirta Kristiadi, Operational Director of PT Kirana Megatara, stated that with extensive replanting, it is estimated that rubber farmers, who have been severely impacted by the drop in price, could see their income rise by 50% compared to the current situation. He stated that of the total national rubber production of 3.2 million tons last year, the 6 million rubber farmers produced approximately 2.5-3 million tons of this rubber directly.“This low level of productivity means that the supply of raw materials in Indonesia is still very low compared to the capacity of the factories absorbing these materials; this is an issue that the government will need to pay attention to moving forward,” he explained.
http://www.bumn.go.id/ptpn5/berita/17715/Harga.Karet.Jatuh,.Gapkindo.Desak.Inpres

Senegal invites Indonesia to build a palm oil refinery

28

Jun

Senegal invites Indonesia to build a palm oil refinery

This was delivered by the Minister of Trade, Informal Sector, Consumption and Promotion of Local Products and UMKM of Senegal, Alioune Sarr, while [...]

Senegal invites Indonesia to build a palm oil refinery. This was delivered by the Minister of Trade, Informal Sector, Consumption and Promotion of Local Products and UMKM of Senegal, Alioune Sarr, while receiving the Indonesian Ambassador for Senegal, Mansyur Pangeran, in Dakar not long ago. 
 
This can also be an opportunity for Indonesian investment in Senegal in the aspect of agriculture-based industry. 
 
Regarding this, Pangeran said that the economic cooperation and relations between Indonesia and Senegal had a huge potential to be developed. 
 
Aside from palm oil products and their derivatives, Indonesia exports to Senegal, among others, textiles, furniture, detergent and food and beverages. Meanwhile, Indonesia imports from Senegal, among others, peanuts, cashew nuts, cotton and frozen fish.Sarr expressed that the Senegalese government was building an industry zone in Diamniadio City, around 40 km from Dakar and hoped that Indonesia could utilize the facility as an investment opportunity by establishing industries there.
Editor: Ade Marboen
http://www.antaranews.com/berita/570070/senegal-undang-indonesia-bangun-pabrik-penyulingan-kelapa-sawit

5 Countries That Could Leave the EU Next

27

Jun

5 Countries That Could Leave the EU Next

Among others are Italy, French, the Netherlands, and Denmark. Votes cast in favor of secession were mostly from ultranationalist parties in all four [...]

5 Countries That Could Leave the EU Next. Among others are Italy, French, the Netherlands, and Denmark. Votes cast in favor of secession were mostly from ultranationalist parties in all four countries.
”Victory for freedom. Like I’ve been saying for years, we need to have this referendum in France and in all EU countries,” tweeted French National Front leader Marine Le Pen.
She praised the UK’s move to hold a referendum and the public’s vote to leave the EU.
According to her, the result of the UK’s referendum indicated that the EU was disintegrating and cracking from all sides. At an event in Vienna, she asserted that France had a thousand more reasons to leave the EU compared to the UK.
The reason is because France is a part of the Eurozone and the passport-free Schengen Area. Le Pen has always been an advocate for anti-euro policies.
”The EU is responsible for high unemployment and the failure to take action against people smugglers, terrorists, and economic migrants,” Le Pen stated.
The politician, who is running to be France’s next president, promised to hold a referendum if she wins the election. A similar vow was made by Dutch anti-immigration politician Geert Wilders.
http://www.jpnn.com/read/2016/06/26/447637/Inggris-Tinggalkan-Uni-Eropa-5-Negara-Mulai-Bergolak-

Tocom Rubber Prices Ended Lower on June 24 on Back of Brexit Decision

27

Jun

Tocom Rubber Prices Ended Lower on June 24 on Back of Brexit Decision

The Yen strengthened on the heels of the U.K.’s decision to leave the EU referendum held in Britain earlier today. The Brexit results spooked [...]

Crude Oil Prices Dive over 4% Post Brexit Decision

27

Jun

Crude Oil Prices Dive over 4% Post Brexit Decision

Britain has voted to leave the European Union, prompting the resignation of Prime Minister David Cameron and dealing the biggest blow to the [...]

Charged 10 Percent, Rubber Entrepreneurs Complain to Jokowi

24

Jun

Charged 10 Percent, Rubber Entrepreneurs Complain to Jokowi

The Presidential Regulation stipulates the imposition of a Value Added Tax (VAT) of 10 percent on agricultural and plantation commodities. The [...]

Charged 10 Percent, Rubber Entrepreneurs Complain to Jokowi. The Presidential Regulation stipulates the imposition of a Value Added Tax (VAT) of 10 percent on agricultural and plantation commodities.
The request was delivered directly when the Gapkindo management met President Jokowi at the State Palace on Friday (24/6/2016).
`We urge that the VAT on plantation and agricultural products be reviewed. Because the 10 percent VAT is very heavy,` said Gapkindo Chairman Munarji Soedargo, after meeting Jokowi.
`We do not dream of being exempt from the VAT. We only request not to be charged VAT on plantation and agricultural products,` he said.
Munarji explained that the Presidential Regulation initially freed agricultural, plantation, livestock, and fishery products to be exported from the 10 percent tax.
However, in 2014, the Supreme Court through Supreme Court Decision Number 70 of 2014, decided to cancel part of the Presidential Regulation.
As a result, agricultural and plantation products that are exported are still subject to a 10 percent tax, while other sectors are not.
Munarji said that the exemption of agricultural and plantation commodities from VAT was not solely for the benefit of rubber businessmen. Rather, for rubber farmers.
`Everything we have said is for the smooth running of the rubber trade, which would benefit everyone, not only for actors like us. But for farmers,` he said.
So, what was Jokowi's response to the request?
Munarji said that the President fully understands the restlessness of stakeholders in the rubber industry.
`The President is very quick, earlier he thought about what the best solution was to help to find a win-win solution. That made us heartened because it was received well,` said Munarji.
The meeting between the Gapkindo management and the President was held at the State Palace. Coordinating Minister for Economic Affairs Darmin Nasution and Minister of State Secretary Pratikno were also present at the meeting.

Author
: Fabian Januarius Kuwado

Editor
: Bayu Galih

http://nasional.kompas.com/read/2016/06/24/13331371/dipajaki.10.persen.pengusaha.karet.curhat.ke.jokowi?utm_source=WP&utm_medium=box&utm_campaign=Kknwp

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