European Palm Oil Resolution Doesn't Affect PTPN III's Export

PTPN III Human Resources and General Affairs Director Seger Budiarjo said that so far, the crude palm oil (CPO) produced by all the subsidiaries has been sold to PT Kharisma Pemasaran Bersama Nusantara (KPBN). This trading company then exports the CPO to a number of countries. “So we have not sold directly to Europe. Thus far, from PTPN as a group, the European Parliament's resolution has not had any impact”, he said to Bisnis.com on Wednesday (19/4/2017). Last year, PTPN III produced 2.8 million tons of CPO as a group, or 9% of the national production, of 31 million tons. According to data from the Central Statistics Agency (BPS), in 2015 the state-owned company cultivated 750,160 hectares (ha) of palm oil plantations, or 6.63% of 11.3 million hectares of palm oil plantations in Indonesia. Separately, the General Chairperson of the Indonesian Palm Oil Association (Gapki), Joko Supriyono, believes that the European Parliament's resolution will not impact Indonesian CPO exports in the short term. However, without a proactive stance from the government, it is not impossible that it will impact acceptance of palm oil globally in the medium and long term. “The resolution could act as a precedent for other countries to implement similar policies”, he said at a Hearing Meeting of Commission IV of the House of Representatives (DPR) on Tuesday (18/4/2017). Nevertheless, Deputy Chairperson of Commission IV of the DPR Herman Khaeron still called on the government and business actors to continue monitoring the impact of the European Parliament's resolution on national CPO exports. Exports must not be allowed to decline and upset the national economy, since palm oil supports the livelihoods of millions of workers. According to data from the Palm Oil Fund Management Agency (BPDP-KS), palm oil and its derivatives exported to the three European Union member states of the Netherlands, Italy, and Spain come to 5.1 million tons, or 20% of total exports in 2016. As known, the European Parliament passed a resolution summarized in the Report on Palm Oil and Deforestation of Rainforests on Tuesday (4/4/2017). The resolution recommended a gradual cessation of palm oil imports, because it is blamed for triggering deforestation and other negative environmental, social, and human rights excesses. http://industri.bisnis.com/read/20170419/99/646439/resolusi-sawit-eropa-tak-pengaruhi-ekspor-ptpn-iii