Businessmen Ask Oil Palm to be Strategic Commodity

Secretary of (Gapki) the North Sumatra provincial chapter, Timbas Prasad Ginting, said that the request was made by the chairman of (Gapki), Joko Supriyono, before Vice President Jusuf Kalla (JK) when opening the Indonesian Palm Oil Conference (IPOC) in Nusa Dua, Bali, on Thursday (July 26). `This request is very important for the development of the palm oil industry in Indonesia,` he told MedanBisnis through a phone call.Gapki is holding the 11th IPOC in Nusa Dua, Bali, for two days, November 26-27, 2015. This IPOC is attended by 22 countries, namely Australia, Singapore, Denmark, Saudi Arabia, and many others.IPOC is a forum for business actors and stakeholders, owners, CEOs and executives, and policy makers at both the national and international levels, to jointly discuss strategic issues related to the palm oil industry from upstream to downstream.IPOC is also an event for business actors to expand their business networks, either through product exhibitions, sponsoring, or face-to-face meetings. `One of the main topics this time is also a solution to boost CPO prices in the international market,` Timbas added.Nationally, Timbas said, at least 16 million Indonesians depend on the palm oil industry for their livelihoods, either as entrepreneurs, farmers, or workers in palm oil mills. Similarly in North Sumatra, the regional economy is also largely supported by the palm oil industry.Foreign exchange earnings from this sector are also quite large. Last year, for example, palm oil was the largest contributor to non-oil and gas foreign exchange earnings at approximately USD21 billion, or 13.4 percent of the total national export value. Meanwhile in North Sumatra, despite pressure on export performance, the contribution of CPO export earnings still exceeded 43 percent of the total export value of North Sumatra. CPO has also remained the main commodity contributing the largest foreign exchange earnings in North Sumatra up to now.Therefore, by making the palm oil industry a strategic commodity, attention to the development of this industry has become more focused. At the very least, it could receive the same treatment as the oil and gas industry. `That way, the palm oil industry will grow even more and contribute more to the economy,` he said.Meanwhile, he added, the government will support the plan. Quoting Vice President JK's statement in his speech, the government considers the palm oil industry as one of the strengths in boosting the Indonesian economy. `The palm oil industry has also helped to improve the welfare of many communities,` he said, quoting JK.Palm oil has now become a global food and energy source. To support the development of this industry, the government plans to build ports in a number of regions. This is to facilitate the distribution of CPO for inter-island trade and exports. The centers of the palm oil industry will also find it easier to obtain supporting raw materials and production machinery because they are closer to the ports.However, the government also asked palm oil entrepreneurs not to deposit their foreign exchange earnings overseas. This is intended to increase the country's foreign exchange reserves and in turn strengthen the economy. If it is deposited overseas, then other countries that will become stronger. `If the palm oil entrepreneurs fulfill and carry out all of their obligations under government regulations, then the government is also ready to facilitate the palm oil business in the country,` JK said firmly.The appeal for entrepreneurs to deposit their export earnings in the country has actually been included in the economic policy package of President Joko Widodo (Jokowi)'s administration, which was announced some time ago. The main objective of this measure is to strengthen foreign exchange reserves and strengthen the position of the rupiah currency. (daniel pekuwali)
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