Latest News: Page 88

12

Jul

Cocoa Prices Jump After Brexit Vote

Cocoa futures traded in London climbed to the highest level since 1977, boosted by a drop in the pound since the U.K. voted to leave the European [...]

Cocoa Prices Jump After Brexit Vote. Cocoa futures traded in London climbed to the highest level since 1977, boosted by a drop in the pound since the U.K. voted to leave the European Union, according to Bloomberg on Monday (11/7).
 
Since chocolate makers pay in euros or U.S. dollars, prices in both currencies have declined since the June 23 Brexit referendum.
 
“Cocoa is not more expensive, it’s a little bit cheaper than before the Brexit,” said Laurent Pipitone, economics and statistics director at the London-based International Cocoa Organization in a phone interview.
 
Futures for September delivery reached 2,520 pounds, or $3.24 a ton, on Friday on the ICE Futures Europe exchange, according to data compiled by Bloomberg. While prices in pounds have rallied 10 percent since the Brexit vote, they’ve dropped 1.1 percent in euros and 3.9 percent in dollars.
 
Cocoa is headed for a fifth straight annual gain, the longest run since at least 1989. Prices have climbed after dry weather in West Africa hurt one of two annual harvests, leading traders including Cargill Inc., Olam International Ltd. and Sucres et Denrees SA to predict a production shortfall.
 
Source Bisnis Indonesia

Palm oil industry faces major challenges

29

Jun

Palm oil industry faces major challenges

"In order to reduce losses as a result of the natural disaster, the company will continue to increase efficiency as well as utility in its [...]

Palm oil industry faces major challenges. "In order to reduce losses as a result of the natural disaster, the company will continue to increase efficiency as well as utility in its efforts, so that the financial indicators show positive progress and development," said President Director of PT Sawit Sumbermas Sarana (SSMS) Rimbun Situmorang to the press in Jakarta on Tuesday. According to him, the difficulties faced by the palm oil industry due to the impact of El Nino and the decline in CPO prices in the global market were not just experienced by the corporation but also by all similar industries nationally. Although it will face major challenges, he said, signs of improvement such as the increasing price of crude palm oil (CPO) are beginning to show a positive trend. Although the price of CPO is currently improving in the last few months, he added, the decline in commodity prices will still affect the corporation's performance in 2016, especially since El Nino, which has been occurring since 2015, is still ongoing and is predicted to continue to have an impact until the end of 2017. "Last year, El Nino caused the production of palm oil by the corporation to decline by 16 percent, and we predict that until the end of 2016, the corporation's CPO production will be corrected between 15 and 20 percent," he said. Rimbun predicts that palm oil production will improve again in 2017 or 2018. While the price of CPO in the global market in April-May averaged between 600 and 630 US dollars per metric ton. Although facing difficulties, he said, the corporation could still distribute cash dividends to shareholders of Rp168.27 billion or 30 percent of the net income of the corporation's fiscal year 2015. He stated that the corporation is still able to distribute shares in the midst of the downturn in the palm oil industry due to the increase in the performance of the corporation whose shares were recorded in the capital market since December of 2013 being significantly noticeable. The area of the corporation's acreage currently reaches 69,841 hectares, up 105 percent compared to 2014, while until the end of 2015, the number of fresh fruit bunches (FFB) processed in factories owned by the corporation reached 1.35 million tons which produced 321,238 tons of CPO. The average age of the corporation's palm oil plants reaches seven years and the majority of plants will enter a peak year of production in the next three to five years. The corporation's management this year has allocated Rp450 billion in capital expenditure (capex), and in the first three months, the funds taken from cash were absorbed 20 percent, which was used for fertilization and planting palm oil trees.
Editor: Ruslan Burhani

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 [...]

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