GAPKI Calls A Several Palm Oil Factorys Stop Operations Due To Integrated Exports

Illustration - Signs of fresh fruit (Photo: Antara)

JAKARTA - The Association of Indonesian Palm Oil Entrepreneurs (Gapki) said a number of palm oil factories had stopped their operations because their palm oil tank capacity was full due to the delay in the export of these commodities.

Head of Gapki Jambi Branch Tidar Bagaskara said that currently the crude palm oil storage tank (CPO) for oil plantation centers is almost full.

As a result, oil palm (PKS) factories have begun to limit the purchase of fresh fruit bunches (FFB) owned by independent farmers.

"There are already four PKS that have stopped operating because the CPO tank is really full. Of the four PKS, one belongs to Gapki members and the three PKS are not members of Gapki," said Tidar, quoted from ANTARA, Thursday, July 7.

According to him, Gapki Jambi has held several meetings with elements of the Jambi Provincial Government (Pemprov) to find solutions to these problems.

Gubernur Jambi siap membantu berkoordinasi dengan Kementerian Perhubungan jika ada kesulitan pada masalah transportasi kapal transportasi.

As for the export tax issue, the governor is ready to communicate with the Ministry of Finance.

"This means that in Jambi Province all support how to increase the price of TBS and CPO exports are smooth again, but all regulations are in the central government," he said.

The same thing was said by West Sumatra's Gapki Chairman Bambang Wiguritno.

He said the CPO storage tanks in West Sumatra were also almost full, even a few weeks ago some were already full, thus stopping their operations.

"Because the operation stopped, the PKS did not buy the farmer's TBS. At that time there were four PKS that stopped its operations," he said.

According to him, PKS which has a contract with a CPO buyer, the tank is not full, there is still around 30 percent space, but it is still worrying because exports are still stagnant.

"That's what causes the price of TBS to be unstable," he said.

Meanwhile, the Head of the Jambi Province Plantation Service (Kadisbun) Agus Rizal said the full storage tank was because PKS had difficulty selling its CPO, even if someone bought it, the price was very low.

"Export conditions that are not yet normal also have an influence on the low price of TBS. PKS is increasingly difficult to accept TBS farmers. Even if it is accepted, the price of TBS for farmers is very low. Moreover, the condition of the CPO storage tank is full," he said.