The Indonesian Palm Oil Producers Association (GAPKI) is optimistic that the target for CPO production for 2017, at 36.5 million ton, or 15.8 percent up from last year, could be reached.
GAPKI Chairman Joko Supriyono in a report uploaded on the organizaton’s Website said that he was optimistic the target for this year could be reached because of good weather conditions. He also said that the CPO productions appeared not to be affected by the negative campaign against palm oil in Europe and the United States.
“The negative campaign is only to gain market share,” Supriyanto said in the report. He was talking to Kontan, the Gapki report said.
He said that GAPKI deemed that the demand for CPO in the international market has continued to rise and therefore, despite of the negative campaign, Indonesia has been able to maintain its CPO market share internationally.
Indonesia was als actively conducting massive counter campaign against he negative issues floated in the European Union and in the United States.
“Therefore, we also are conducting campaigns so that the market not be influenced,” he said. Supriyono also said that Indonesia had also already mapped potential export markets that could be developed such as India, Pakistan and China.
Director general for plantation at the agriculture ministry, Bambang said in a press release that in 2016 palm oil contributed Rp 260 trillion into the gross domestic product from the plantation sector.
“In conditions that are not to well taken care for, plantation can already contribute greatly to state revenues, Bambang said after saying that productivity of smallholder was at an average of two million tons per hectare per year while big companoes averaged between eight to ten tons per hectare per year.
Indonesia, he added, was also trying to prove that its palm oil production is in line with sustainability aspects, including through sustainability system .
Executive director of the Indonesian Palm Oil Board, Iskandar Andi Nuhung was also quoted in the report as estimating that the palm oil production will continue to increase next year, Indonesia is targeting a CPO output of between 42 million ton to 43 million tons for 2018.
“The price of fresh fruit bunch at farmers level will also increase to Rp 2,000 per kilogram, “ he said.