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.
"As our palm commodities and CPO have entered the global market, the
European nations are pressuring Indonesia into implementing an
unreasonably high standard for palm products," he noted.
According to General Chairman of the Indonesian CPO Council (DMSI)
Derom Bangun, threat against Indonesia's CPO in France is becoming more
and more intense. France is intensively launching an anti-CPO campaign
by putting the CPO-free label 'Sans Huile de Palme' on the packages of
its food products.
"The threat is increasing because France is considering imposing
additional tax on CPO. It is considering raising the CPO import tax from
98.74 euro per ton to 300 eruo per ton," DMSI Chairman Derom Bangun
said in Medan, North Sumatra, on Friday.
Indonesia is the world's largest CPO producer with an annual production
of about 24 million tons and has oil palm plantations covering about 8
million hectares.
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 figure gives Indonesia the potential to become
the exclusive CPO supplier for the world market in the future.
General Secretary of GAPKI Joko Supriyono said: "The reason behind the
unreasonably high standard France wants to impose on us is to restrict
the sales of Indonesian CPO in Europe."
"The government must
demand fair play in CPO trade and marketing in Europe, because the
commodity contributes significantly to Indonesia's trade and economy,"
he explained.
Supriyono stated that the Indonesian government was not doing enough to
support its domestic CPO industry, which was 'getting reflected in high
export taxes'.
"They said the high tax rates were aimed at lowering exports and
cutting down the domestic price of palm oil," he noted.
France previously needed some 126,000 tons of CPO, coconut oil and palm kernel oil per annum.
DMSI Chairman Derom Bangun said that if this condition was left
unheeded Indonesia's CPO exports to France would continue to shrink.
Therefore, DMSI is of the view that serious efforts should be made to
overcome trade barriers of the commodity in that country and in the
world market.
Derom said it was believed that France was to raise the import duty of
CPO by about 300 percent because it was trying to protect its canola oil
which was increasingly unable to compete with CPO in the market. "But
we have to overcome the CPO import barrier in France," he added.
After all, the United States on one side, is still questioning
Indonesia's CPO biodiesel emission reduction which is said has not yet
met the required minimum standard of 20 percent.
The US Environmental Protection Agency (EPA) said that the CPO
biodiesel emission reduction is still in the 17 percent level rather
than the required 20 percent. It said that the rate of emission in the
field is still high due to peat land cultivation and wastes of
processing factories.
Regarding the falling price of CPO on the world market, Derom said
Indonesia should use the momentum to accelerate its oil palm plantation
rejuvenation programs, particularly its old palms.
"Malaysia already has a replanting program for its plantations with the
age of over 25 years old. With the program, it hopes to reduce
production by 300,000 tons a year," Derom Bangun said on Saturday.
He said that replanting was expected to reduce production for the time
being and to increase price in the world market which was falling due to
global economic crisis. Reducing production would create balance
between demand and supply that would in the end increase prices.
"Indonesia should have been able to follow the steps taken by Malaysia
to rekindle the price of CPO in the world market," Derom said.
He said that the price of CPO this year had been recorded at the
average of US$900 per ton, lower than earlier prediction at US$1,100 per
ton.
According to Derom, Indonesia could use CPO export fees for
rejuvenating its plantations such as what has been done by Malaysia.
Malaysia has been carrying out replanting program using funds which the
government has levied amounting to four ringgit per ton of CPO export.
Chairman of the Indonesian Oil Palm Farmers Association (Apkasindo)
Anizar Simanjuntak admitted that farmers faced difficulties rejuvenating
their plantations because of the lack of funds.
"In addition, the revitalization program launched by the government
could not be carried out smoothly because of a land certification
problem," he said.
He said that most of the farmers had no land certificate which was one
of the requirements to obtain credits or funds for the palm oil
revitalization program while at the
(T.A014/A/A014/A/B003) 25-11-2012 21:36:4 |
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