CPO Sumsel Contributes 10 Percent of National Production

INDUSTRY.co.id - Palembang- Based on data from the Central Bureau of Statistics (BPS) of South Sumatera, the export value of CPO Sumsel increased during February 2017 (yoy) to 48.86 million US dollars from 36.22 million US dollars previously.

Chairman of the Association of Indonesian Oil Palm (Gapki) South Sumatra Harry Hartanto said with these achievements, the production of CPO Sumsel still contribute at least 10 percent of the total national production.

"Gapki set a high target this year due to the addition of extensive garden planting and favorable climatic conditions," said Harry.

Meanwhile, based on satellite imagery, the area of ​​oil palm plantations in South Sumatera reaches about 1.3 million hectares with 50 percent managed by the community; the rest is owned by private and state-owned enterprises.

Harry added that in fact, South Sumatra has the potential to increase CPO production by almost 5 million tons because there are 70 palm oil mills with a capacity of 3,950 tons per hour and a yield of about 20 percent. However, it is difficult to realize because the growth of the downstream industry has not yet grown.

"So the development of downstream CPO industry is felt in Java Island because it is closer to market, such as biodiesel and oleochemicals in Banten and Jakarta, while in South Sumatera it is limited to cooking oil factory," he said. (Ant)