Tampilkan postingan dengan label cpo. Tampilkan semua postingan
Tampilkan postingan dengan label cpo. Tampilkan semua postingan

Kamis, 29 November 2018

GOVERNMENT CONTINUES TO PROMOTE PALM OIL

 by Andi Abdussalam
          Jakarta, Nov 29 (Antara) - The Indonesian government continues to improve the quality of its palm oil products and expand markets to non-traditional export destinations as negative campaigns in traditional market such as Europe still continue to take place.
         As regards, the Coordinating Ministry for Economic Affairs has set a target to certify 70 percent of the oil palm industry at home  through  the "Indonesia Sustainable Palm Oil" (ISPO) certification by 2020.
         "We hope to meet the target. The government will also continue to promote the ISPO  so that it would be known as Indonesian standard abroad," said Wilistra Danny, Plantation and Horticulture official of the Coordinating Ministry for Economic Affairs, in Jakarta on Thursday.
         He stressed that the government will seriously address turmoil in oil palm industry with efforts aimed at promoting the standard to the international community in an effort to face the negative campaign.
         Besides that, Indonesia will also try to expand markets to non-traditional countries. The Ministry of Trade is therefore eyeing new markets, given the negative sentiment from one of its main markets, the European Union, still persists.

Kamis, 26 April 2018

RI NEEDS TO EXPAND ITS CPO MARKET, SOLVE LOCAL PROBLEM

 By Andi Abdussalam
    Jakarta, April 26 (Antara) - Indonesia needs to expand the market for its crude palm oil (CPO) at home and abroad and resolve the problems being faced by palm oil industry in the production of the commodity.
        While facing a threat due to the European Union's plan to phase out its palm oil-based biofuel, Indonesia has to seek new markets, while maintaining its conventional markets overseas, such as India, China, and Pakistan, which are the largest markets for Indonesian CPO.
          Thus, the Indonesian and Australian governments have held negotiations on CPO trade. "We are currently carrying out the process with Australia, and we have agreed to come out with the final agreement this August," Trade Minister Enggartiasto Lukita stated in Jakarta on Monday (April 9).  
     The Minister of Trade continued to communicate intensively with the Australian parliament regarding the drafting of policies on the use of oil palm and its derivative products in Australia.

         "There are still some things that are under negotiations..Along with member of the Australian parliament, Steven Ciobo, we have agreed that the next round of negotiation processes between the set teams will take place soon. They will leave out some items, and later, the two ministers will take the final steps," he explained.

Rabu, 25 April 2018

INDONESIA PREPARES STEPS IN RESPONSE TO EU'S BIOFUEL PLAN

by Andi Abdussalam
          Jakarta, April 25 (Antara) - Indonesia is preparing steps in response to the European Union's (EU's) plan to phase out the use of palm oil-based biofuel energy that will affect palm oil-producing countries.
         Indonesia, as the world's largest producer of crude palm oil (CPO), has called on other CPO-producing nations, such as Malaysia and Ghana, to outline a strategy in the face of the EU's phase-out plan.
         CPO producers believe that the European Parliament's resolution, signed on January 17, 2018, to phase out biofuel made from palm oil in 2021, is discriminatory, as it singles out palm oil from other food crops.
         According to Siswo Pramono, head of the Research and Policy Development Board (BPPK) of the Ministry of Foreign Affairs, Indonesia is making several preparations in the face of the EU's plan, including establishing the Council for Palm Oil Producing Countries to foster a development strategy among oil-producing nations.

Jumat, 20 Oktober 2017

PALM REPLANTING TO GENERATE RP125 TRILLION ADDITIONAL INCOME

 By Andi Abdussalam
          Jakarta, Oct 20 (Antara) - The rejuvenation of Indonesia's aging oil palm plantations will increase the value of the country's crude palm oil (CPO) commodity to about Rp125 trillion per annum.
        Hence, the government is launching a replanting program to rejuvenate old palm trees, as some of its 11.9 million hectares of plantation are already old.
         Bambang, Director General of Plantation of the Ministry of Agriculture, said that the palm oil replanting program could generate a value-added productivity of Rp125 trillion per year.
         According to him, of the total 11.9 million hectares of oil palm plantations in Indonesia, about  4.7 million or 48 percent are people's plantations. A total of 2.4 million hectares among the people's palm estates are still managed in a traditional way, so their productivity is not maximal.
         The rejuvenation program for the farmers' oil palm plantations is believed to increase productivity and bring more prosperity to the people, with the full support of the government and the business community.

Jumat, 13 Oktober 2017

INDONESIA BEGINS REJUVENATING OIL PALM PLANTATIONS

 By Andi Abdussalam
         Jakarta, Oct 13 (Antara) - Indonesia, the world's largest crude palm oil (CPO) producer, has begun rejuvenating its oil palm plantations as some of its 11.6 million hectare plantations are now aging.
        Rejuvenating its palm plantations is very important for Indonesia to maintain its reputation as the world's largest CPO exporter. Hence, Indonesia is now beginning to renovate its plantations especially in Sumatra.
        President Joko Widodo (Jokowi) said the government will continue to rejuvenate the country's oil palm plantations, starting from Sumatra. The President made the remarks when inaugurating the rejuvenation of thousands of hectares of oil palm plantations in Musi Banyuasin District, South Sumatra on Friday.
        The aim of plantation rejuvenation is to make the economy continue to increase. Moreover, CPO plays a significant role in the country's economy.
        As some plantations are old, there has been a downward trend in CPO production.  According to  the Palm Oil Plantation Fund Managing Board (BPDP),  CPO exports fell two percent by volume in 2015, while production dropped by about seven percent.

Rabu, 20 September 2017

GOVERNMENT NEEDS GRAND STRATEGIES TO BOOST PALM OIL EXPORTS

 by Andi Abdussalam
          Jakarta, Sept 21 (Antara) - Indonesia, the largest crude palm oil (CPO) producer country, which along with Malaysia controls some 80 percent of the CPO market in the world, has the potential to decide the commodity's business prospects.
        Hence, the government needs to create an effective grand strategy related to the palm oil commodity, which is one of the leading export goods of the national economy.
         "The government should have a grand strategy or a national oil road map," Hamdhani, a member of the House of Representatives' Commission IV on plantation affairs, noted in a release in Jakarta on Wednesday.
         According to Hamdhani, palm oil production is proven to have overcome the economic disparities of people in several areas of the country, such as between Java and outside Java.
         Hamdhani, who is a Nasdem Party politician, also pointed out that Malaysia, as a competitor country, has applied a standard rule; hence, if Indonesia does not formulate the right regulation, its position as a ruler of the CPO market could be taken over.
         It is reported that Indonesia could lose its market in India if the government did not immediately conduct bilateral negotiations following the imposition of a two-fold import duty on CPO and its derivatives to the South Asian country.

Sabtu, 22 April 2017

RI, MALAYSIA POISED TO SET WORLD CPO PRICE

by Andi Abdussalam
          Jakarta, April 22 (Antara) - Indonesia and Malaysia, the world largest Crude palm oil (CPO) producers hope they will eventually be able to set the world's reference price for the commodity in future.
         "Indonesia and Malaysia are expected to increase collaboration to set the global price and marketing. The most important thing is the price of CPO," Malaysia's Federal Land Development Authority (Felda) Chairman Tan Sri Shahrir Samad said in Kuala Lumpur on Saturday.
         Indonesia and Malaysia are the world's number one and number two CPO producer countries with respective production of about 35 million tons and 18 million tons per annum. As they control more than 80 percent of the CPO market in the world, these countries have the potential to control its price too.
         Indonesia is predicted to produce about 35 million tons of CPO in 2017, of which about 23 to 25 million tons are for exports. By 2020, Indonesia's CPO production is expected to reach 40 million tons.

Sabtu, 04 Februari 2017

INDONESIA NEEDS TO REJUVENATE PALM OIL PLANTATIONS

By Andi Abdussalam
           Jakarta, Feb 4 (Antara) - With some 11.6 million hectares of plantations, Indonesia needs to rejuvenate its palm oil trees to maintain its position as the world's largest crude palm oil (CPO) producer.
        The country needs to rejuvenate its palm oil plantations to increase its CPO production, as in the midterm, the Industry Ministry has accorded priority to increasing investment in the palm oil processing industry that needs raw material.
        Hence, anticipatory efforts must be undertaken to meet the need for raw material for the production of about 40 million tons of CPO by 2020.
        However, as the plantations are old, there has been a downward trend in CPO production. Bayu Krisnamurthi, president director of the Palm Oil Plantation Fund Managing Board (BPDP), had stated last month that CPO exports fell two percent by volume in 2015, while production dropped by about seven percent.
        "At the end of 2015, palm oil fruit production fell due to the El Nino-induced drought in 2015. Exports fell two percent by volume, as production dropped by seven percent," Krisnamurthi, who has recently stepped down from the post of BPDP president director, noted.
        In 2015, Indonesia's CPO production had reached 32.5 million tons, with exports reaching 26.4 million tons. The export value went down from US$21.1 billion in 2014 to $18.6 billion in 2015.

Sabtu, 14 Januari 2017

CPO EXPORT DROPS BUT PRICE ON THE RISE

 By Andi Abdussalam
           Jakarta, Jan 14 (Antara) - Indonesia's export of crude palm oil (CPO) and its derivatives fell by nearly 2 percent to 25.7 million tons in 2016 from 26.2 million tons in 2015.
          Despite export decline, the price of crude palm oil (CPO) is on the rise, reflecting a good trend, and has reached Rp9.140 per kilogram (kg), as recorded by the Joint Marketing Office (KPB) of PT Pekebunan Nusantara on January 9.
          "The CPO business was now thriving well because apart from the improving price, the demand for this commodity is also increasing," Chairman of the Indonesian Palm Oil Association (Gapki) for North Sumatra, Setia Dharma Sebayang, said in Medan on Saturday.
          In Rotterdam, the CPO's price was US$180 per metric ton. He said the CPO's price was improving on account of many factors, such as an improvement in the global economy.
          The price of and demand for CPO is predicted to remain positive, he added.
         "While the price of CPO and its demand are improving in North Sumatra, North Sumatra's foreign exchange reserves are also expected to increase," Sebayang noted.

Selasa, 11 Oktober 2016

TIME TO APPLY PRO-FARMER SYSTEM IN PLANTATIONS

by Andi Abdussalam
          Jakarta, Oct 12 (Antara) - The conflict between farmers and an oil palm plantation company in East Kota Waringin District, Central Kalimantan, needs serious government attention and a review of cooperation between farmers and companies.
         In East Kota Waringin District, for example, there has been an incident where local residents forced their way onto a plantation area to seize and harvest the company's nucleus palm oil crop.
         Allegedly, the locals were angry as the company failed to keep its promise to provide them with palm plantations. Normally, large oil palm plantations are cultivated under a Nucleus Estate (PIR) system, where the company (which owns nucleus plantation) cooperates with the farmers whose plasm land is outside the nucleus area.
         In the PIR system, the company owns 80 percent of the nucleus of the plantation, while the plasm farmers own the remaining 20 percent. They cooperate under a mutually beneficial basis.
         In the East Kota Waringin District case, the local people had earlier expressed an interest in an offer made by the company to become plasm farmers and, therefore, they had agreed to use their land. But it remained just a dream and they were left disappointed.

Senin, 22 Februari 2016

ANTI-CPO LABELED PRODUCT ENTERS INDONESIAN MARKET

 by Andi Abdussalam
          Jakarta, Feb 22 (Antara) - A packaged food product bearing the anti-crude palm oil (CPO) labeling has entered the domestic market of Indonesia, the world's largest producer of CPO.
         The imported product, with the "Palm Oil Free" (POF) label, has gained entry into the country at a time when Indonesia is developing its CPO as a strategic commodity.
         Besides using it as a raw material for food items, Indonesia is also developing CPO as raw material for fuels, such as in its biofuel mix program in diesel fuel (now 20 percent), called B20.
          It is even planning to develop a green economic zone as a CPO derivative production center, targeting to produce CPO-based jet-aircraft fuel whose added value and environmental impact are better than those of aviation turbine (avtur).
         "This is a serious blow to the national palm oil industry in Indonesia where some 43 percent of the country's palm oil plantations are owned by local farmers. Farmers also produce some 30 percent of the CPO," Secretary General of the Indonesian Palm Oil Business Association (Gapki) Togar Sitanggang stated on Friday, last week, while referring to the entry of the anti-CPO commodity into Indonesia.

Jumat, 17 Oktober 2014

CPO EXPECTED TO SUPPORT GOVT BIOFUEL PROGRAM

By Andi Abdussalam  
          Jakarta, Oct 17 (Antara) - With the depletion of its fossil fuel reserves and increasing world calls for a clean environment, Indonesia is launching a biofuel mix program, as part of its efforts to turn towards eco-friendly energy.
         In carrying out this program, the government has been putting in place a 10-percent biofuel mix of fuel oil called B10. Biofuel mix is to be increased to 20 percent in 2016 when the biofuel mix is expected to reach 8 million kiloliters.
         To support this program, the government is using crude palm oil (CPO) as raw material in the 10 percent biofuel mix. This program is also aimed at reducing fuel imports.
         The government is set to increase the biofuel mix target to 30 percent in the future, if the B10 and B20 programs are successful in 2014 and 2016. "If we have enough time, we can introduce higher biodiesel blends. With uncertain prices at present, we can best allocate a substantial amount (of CPO for the mixture program)," Indonesian Trade Minister Muhammad Lutfi said recently.
         This program also offers a sales guarantee to the country's CPO domestic industry. Thus, domestic palm oil industries have the chance to expand their businesses.

Sabtu, 06 September 2014

PROSPECT OF INDONESIAN CPO REMAINS BRIGHT

 By Andi Abdussalam 

          Jakarta, Sept 6 (Antara) - Indonesian oil palm farmers should not worry about the current fall in the crude palm oil (CPO) prices in the global market, as the commodity can be absorbed to produce biodiesel domestically.
         As the world's largest CPO producer, with plantation covering some 7.4 million hectares, Indonesia supplies about 44 percent of the world's CPO requirements. Domestic use of raw material for diesel oil production can reduce world supplies and thus leading to price hike in the global market.
         After all, the global need for CPO continues to increase. According to Fadhil Hasan, executive director of the Indonesian Palm Oil Producer Association (GAPKI), the global demand for the product will increase next year benefiting Indonesia.
         So, farmers should not worry about the decline in prices. Moreover, Indonesia is currently launching a program to use CPO as raw material for the production of alternative energy to replace its depleting fossil fuels and to reduce fuel imports.

Jumat, 27 Desember 2013

RI FALLS SHORT OF CPO PRODUCTION TARGET

 By Andi Abdussalam
          Jakarta, Dec 27 (Antara) - Indonesia is expected to fall short of the CPO production target, set at  28 million tons this year, but the country's palm oil council predicts production will increase slightly to 29.5 million tons in 2014.
         "This year, Indonesia's crude palm oil (CPO) production is forecast to reach only 26.2 million tons, thereby falling short of the target set between 28 and 28.5 million tons. We hope that next year, Indonesia's CPO production will show a slight rise and reach 29.5 million tons," the General Chairman of the Indonesia Palm Oil Board (DMSI) Derom Bangun stated in Medan, North Sumatra, on Thursday.
          Thus, with a remainder of 2.1 million tons from 2013, the country is expected to have a stock of 31.6 million tons of CPO in 2014.
          Indonesia, the world's largest crude palm oil producer, fell short of the target this year, as a result of extreme weather conditions that affected the harvest. 
     "Initially, the production in 2013 was estimated to be between 28 million tons and 28.5 million tons, but due to bad weather conditions, it is estimated to only reach around 26.2 million tons," noted Derom Bangun.


Sabtu, 28 September 2013

RI TO FIGHT FOR INCLUSION OF CPO INTO APEC'S LIST

By Andi Abdussalam 
         Jakarta, Sept 28 (Antara) - Indonesia will fight for the inclusion of crude palm oil (CPO) onto the Asia-Pacific Economic Cooperation (APEC) List of Environmentally-Friendly Goods during next week's APEC summit in Bali.
        Indonesian Trade Minister Gita Wirjawan said that Indonesia would take its rubber and crude palm oil products to the APEC forum for discussion so that they would be included among the list of goods which enjoy tariff reductions.
        "We set a target, that by 2015 our agro-industry products would be included among environmentally-friendly goods and would enjoy a maximum tariff reduction," the trade minister said, during a discussion with journalists at the Ministry of Trade on Thursday.
        In September 2012, leaders and representatives from 21 member economies of APEC approved a list of 54 environmentally -friendly goods at their summit in Vladivostok, Russia, which will receive tariff reductions of up to 5 percent by 2015.
        However, CPO, one of Indonesia's mainstay products, was not included in the list.

Kamis, 21 Maret 2013

FOREIGN FIRMS EYE RI OIL PALM WASTE BUSINESS

By Andi Abdussalam
          Jakarta, March 21 (Antara) - Indonesia is the world's largest crude palm oil (CPO) producer with an annual production of 25.5 million tons, but the commercial benefit of its oil palm refuse has not yet been maximally exploited.
         A number of foreign companies, including from South Korea and Poland, have expressed interest in processing oil palm wastes to produce biomass energy and electricity.
        The foreign investor companies which are exploring the opportunities included the EN3EN,  Daekwang Industries Co. Ltd of South Korea and PT Kepulauan Energi Lestari of Poland.
         In Riau province, the South Korean government through EN3EN firm is interested in making investment with an initial fund worth US$50.1 million in this sector.
         "EN3EN is the only company which wins the full support of the South Korean government in the development of energy conversion from oil palm wastes. We have begun to build a pilot project in Siak and Kampar of Riau province," Kei Sin Kim, senior and financial adviser of EN3EN, was quoted by Infosawit.com online as saying last month.
         In its cash flow analysis, EN3EN depicts that the needed initial capital amounted to US$54 million. In in the 1-10 year period the cash flow would decline to US$11 million but would already enjoy an income of about US$40 million.

Senin, 25 Februari 2013

RI TO MAINTAIN CPO EXPORT TAXES

 By Andi Abdussalam
          Jakarta, Feb 25 (Antara) - The Indonesian government will consistently implement its progressive crude palm oil (CPO) export taxes in an effort to boost the development of CPO downstream industry at home.
         The government's determination to consistently implement the policy was reaffirmed by Trade Minister Gita Wirjawan on Monday amid calls by oil palm farmers that CPO export taxes should be cut.
         Farmers said the CPO export taxes of between 7.5 percent and 22.5 percent per metric ton would reduce their competitive edge in the face of Malaysia's CPO in the world market. Malaysia has cut its  CPO export taxes.
         The Indonesian Oil Palm Farmers Association (Apkasindo) said the government should lower its export taxes. Tax cut is needed to maintain Indonesia's CPO competitiveness against that of Malaysia.
         Apkindo asked that the government should this year reduce CPO export tax to 4 percent only. At present, the government is imposing  CPO taxes at a range of between 7.5 percent and 22.5 percent.
         The 7.5 percent tax is imposed on CPO with a reference price of between 750 and 800 US dollars per ton. The highest level tax of  22.5 percent is imposed on CPO export with a reference price of over 1,250 US dollar per ton.

Jumat, 14 Desember 2012

CPO PRICE FALL THIS YEAR PREDICTED TO CONTINUE IN 2013

 By Andi Abdussalam
         Jakarta, Dec 14 (ANTARA) - This year, the Indonesian crude palm oil (CPO) industry has witnessed a decline in its commodity prices. The CPO industry had recorded a good performance in 2011 when palm oil production increased by 7.3 percent, reaching 23.5 million tonnes. The export value of palm oil increased by 5.7 percent and reached 16.5 million tonnes.
         The price of palm oil had also increased by 24 percent, and it had reached US$1.125 (CIF Rotterdam) per tonne in 2011. However, this year, the price fell to US$900 per tonne," said Indonesia's Palm Oil Council Chairman (DMSI), Derom Bangun. Even, he said, it is predicted to decline further to US$850 per tonne because of the ongoing global crisis. 
    Although the production of palm oil has increased to 25.5 million tonnes this year, the world's CPO price in 2012 fell to about US$900 per tonne, lower than what experts had predicted (US$1,100 per tonne).


Minggu, 25 November 2012

CPO FACING LOW PRICES AND HIGH IMPORT DUTY

 By Andi Abdussalam 
          Jakarta, Nov 25 (ANTARA) - Indonesian crude palm oil (CPO) stakeholders hope that the government will take necessary steps to overcome falling prices of CPO in the world market and lobby France which is considering raising CPO import tax by about 300 percent.   After oil, CPO is Indonesia's export mainstay product which could affect Indonesia's foreign exchange earning if its price continues to fall, which this year has been recorded at the average of US$900 per ton, lower than earlier prediction at US$1,100 per ton.
         While facing a lower price in the world market, CPO exports, of which Indonesia is the world largest producer with a production of 24 million tons per annum, are also facing a high tax threat in France.         With regard to this condition, the Indonesian Palm Businessmen Organization (GAPKI)  has urged the Indonesian government to lobby against the proposed hike of CPO import tax to 300 percent in France.
         "The government should prevent this new regulation from coming into effect by urging French officials not to boost the import tax and help remove the stigma on our CPO as unhealthy and environmentally unfriendly products," GAPKI executive director Fadil Hasan said last week.

Rabu, 12 September 2012

RI SEEKS FOR CPO GREEN LABEL

 By Andi Abdussalam

         Jakarta, Sept 12 (ANTARA) - Indonesia, the world's largest crude palm oil (CPO) producer, will continue to fight for the inclusion of the commodity in the list of the Asia-Pacific Economic Cooperation (APEC)'s eco-friendly products.

        Leaders and representatives from 21 member economies of APEC approved a list of 54 environment-friendly goods, at the summit in Vladivostok in Russia that ended on Sunday, which will result in tariff reductions up to 5 percent by 2015.

        However, CPO, one of Indonesia's mainstay products, was not included in the list.

        The Indonesian Association of Palm Oil Companies (GAPKI) regretted the APEC rejection of the Indonesian proposal asking for the inclusion of palm oil in the list.

         Yet, the Indonesian Chamber of Commerce and Industry (Kadin) is optimistic that CPO will later be added to the list of APEC's green products.  The approved items are not green goods themselves, rather goods which are conducive to environmental protection.

         "The exclusion of CPO from the list of environment-friendly products approved during a recent APEC meeting is not really a failure. It is only a matter of time (before crude palm oil is included in the list) and the Indonesian government is still fighting to this end," said Kadin Chairman Suryo B Sulisto on Tuesday.

        Earlier, GAPKI expressed regret over the failure of the government to fight for the inclusion of the commodity in the list, saying the Indonesian government failed to rally enough support for its proposal in the Asia-Pacific Economic Cooperation forum in Vladivostok, Russia.

         "The APEC meeting was important, although there is no binding regulation on its members to comply with a decision. However, it is still regrettable that CPO failed to gain APEC approval for reasons that are not yet well known," said GAPKI chairman M. Fadhil Hasan on Monday.

         Indonesia is the world's largest CPO producer with an annual production of about 24 million tons and has oil palm plantations covering 7.3 million hectares of land area.

         In 2011, its CPO production was recorded at 23.5 million tons, of which some 16.6 million tons were exported. Palm oil production in 2010, meanwhile, was recorded at about 22 million tons, with only 15.6 million tons being exported.

         By 2020, the country expects to increase its annual production of CPO to 40 million tons. The figures give Indonesia the potential to become the exclusive CPO supplier for the world market in the future.

         At present, the crude palm oil industry is the country's second largest foreign exchange earner after the oil and gas sector.

    Indonesia has been a target of criticism, especially in Europe, over accusations that the country has destroyed its tropical forests to provide space for oil palm plantations.

         "In the beginning, we were hopeful that Indonesia would succeed in having CPO declared as an environment friendly product," Fadhil said.

         He added that CPO deserves to be declared environment-friendly because after the implementation of the "Indonesia Sustainable Palm Oil" (ISPO) scheme, palm oil companies are required to adopt sustainable principles while processing their products.

        ISPO is a verification system used to strengthen the sustainability of the country's palm oil, domestically and internationally.

        "If all palm oil companies in Indonesia adopt ISPO, CPO could be categorized as an environment-friendly product," Fadhil said.

          According to Indonesian portal, 'Bisnis.com', the failure to include CPO as one of 54 eco-friendly products in APEC's list is not closing the possibility for Indonesia's CPO to penetrate the global market through a tariff reduction facility.

         "CPO demand is still high in the global market, so it is still competitive, although it is subjected to an import tax tariff", said the Head of Fiscal Policy Agency, Bambang Brodjonegoro.

         Such a tariff reduction facility will set a maximum import tax tariff cap of 5 percent. The tariff for eco-friendly products will reach 30 percent or go higher, if the facility is not applied.

    GAPKI chairman M Fadhil said that APEC approval would be positive for exports as the import duties on CPO would not be more than 5 percent in its member countries.

          He, however, added that GAPKI remains optimistic that demand for Indonesian CPO would continue to grow in the world market.

         "There is a possibility that import duties on CPO in APEC member countries would be cut under bilateral trade agreements", he said.

    Moreover, Bambang says that Indonesia can still propose a tariff reduction facility through the Free Trade Agreement (FTA) mechanism if it fails to do so through APEC.

          "Indonesia can, for example, propose a free trade agreement with Pakistan. We export CPO to them with a free import tax tariff," he said.

         Indonesia also has other free trade agreements for CPO export such as those with ASEAN FTA and Australia-New Zealand-ASEAN FTA.

         "Our export is not only to APEC member countries. It's possible for Indonesia's CPO export to penetrate other markets," Bambang was quoted as saying by Bisnis Indonesia online.

          However, the decision to classify CPO as an eco-friendly product is still in the hands of APEC ministers. Such a decision, which is based on the APEC ministers' consensus, is still debatable at the level of APEC's economic leaders.

          The Indonesian government, for its part, is continuing efforts to get CPO included in the APEC list of eco-friendly goods.

        Kadin is optimistic that CPO will soon be included in APEC's list of eco-friendly products.

        "The exclusion is not really a failure. It is only a matter of time before CPO gets included in the list of eco-friendly goods and the Indonesian government is still fighting for it," said Kadin Chairman Suryo B Sulisto.

        If Indonesia succeeds in its efforts to get CPO included in the APEC list of environment-friendly products, he added, it would be an important step forward for the country.

         "The products included in the APEC list are approved as green products. A number of factors determine whether a product is actually environment-friendly, such as the production mechanism and the number of machines used in its production process," explained Suryo. ***2***
(T.A014/INE/BSR/F001) 12-09-2012 15:48: