GAPKI Lobby Pertamina To Absorb Palm Oil

INDUSTRY.co.id - Surabaya - The Indonesian Palm Oil Entrepreneurs Association (Gapki) is trying to lobby PT Pertamina through the government to absorb the palm oil harvest which is quite high in 2018, but is still constrained by sales, especially in the export market.

Secretary General of Gapki, Lakshmi Sidharta in Surabaya, Thursday (19/7/2018), said the condition of oil palm crops in 2018 is good, or the term experiencing "harvest highway", but market conditions are less supportive.

"Supply is currently a lot, but export difficulties due to discrimination and increased import duties of crude palm oil to some export destinations, plus protectionism policies taken by certain countries," said Lakshmi met after workshop Journalism held PWI Java.

As a result, he said, some sellers still stop selling because there are policies that are less supportive in some of these countries.

"Actually we are not unwilling to sell, but because the requirements add and the price is bad to make temporarily do not want to release the goods, because it can be a loss," he said.

On the other hand, he said, the current capacity of palm oil or palm oil storage tanks in Indonesia is full, so it is no longer able to accommodate / store.

"If the old stored in the tank makes the oil content becomes ugly, worried the quality will be bad as well and affect the farmers," he said.

The solution, he said, is currently GAPKI approach to some companies to be able to absorb oil palm in the form of biodiesel, one of them is Pertamina.

"The lobby is now continuing, and the shape of oil palm is converted to biodiesel by heating, and this will raise the selling price," he said.