|
The
Jakarta Post
| Thu, 02/26/2009 4:03 PM | Business
Indonesia
and Malaysia have agreed to work together in strengthening the
prices of global commodities, particularly crude palm oil and
rubber, through production cut backs.
Malaysia and Indonesia jointly account for 85 percent of global palm
oil production and 40 percent of natural rubber production.
State news agency Antara reported Thursday that the two countries
had issued a joint statement saying that they were preparing
measures to “ensure stable pirces in particular for palm oil”.
"These measures include managing palm oil stocks and reducing supply
through replanting programs," the statement said.
Plantation Industries and Commodities Minister Peter Chin Fah Kui
and Minister of Agriculture of the Republic of Indonesia Dr. Ir.
Anton Apriyanto met in Kuala Lumpur on Wednesday to discuss
bilateral cooperation on the matter.
The Indonesian Minister is in the city to attend the
Developing-Eight (D-8) Ministers Meeting.
For palm oil, the ministers have agreed to accelerate replanting of
oil palm trees which are above 25-years old, implementation of
biofuel program, increasing domestic demand for crude palm oil and
jointly engage major importing countries of palm based methyl ester
in addressing non-tariff barriers for the exports of biofuel.
Malaysia has implemented the blending of five percent palm based
methyl ester with fossil diesel.
Indonesia implemented a minimum of one percent blending program in
the public transportation sector and a minimum of 2.5 percent
blending in the industry and commercial sector. These minimum
percentages will be increased to 2.5 percent in the public
transportation sector and five percent in the industrial and
commercial sectors.
Both ministers also want to exchange production and stock level data
on a regular basis to facilitate stock management and promote palm
oil through engaging the related legislators of importing countries.
As for rubber, both countries will accelerate replanting of rubber
trees aimed at managing the supply of natural rubber.
"Malaysia has revised upwards the original target of replanting
rubber areas to 50,000 hectares in 2009 from 32,000 hectares.
Indonesia is replanting 55,000 hectares with rubber in 2009," the
statement was quoted by Bernama as saying.
Meanwhile, both countries also agreed to control the expansion of
new planted area for rubber, encouraging the reduction of tapping
frequency.
The ministers hope that these measures will reduce price volatility
and contribute towards stability of both palm oil and natural rubber
prices in the longer term.
|
|
Al Hudaiba Comm 322
Villa No.1 Bur Dubai
Phone: (971-4) 398-5666
Fax: (971-4) 398-0804
Designed and maintained
by Economic Department of Indonesian Consulate General in Dubai
Copyright © 2008
Indonesian Consulate General, Dubai - UAE
|
