ID :
27895
Sat, 11/01/2008 - 07:40
Auther :
Shortlink :
http://m.oananews.org//node/27895
The shortlink copeid
News Focus: GOVT'S URGED TO SAVE OIL PALM GROWERS FROM BANKRUPTCY By Eliswan Azly
Jakarta, Oct 31 (ANTARA) - After exempting crude palm oil exporters from export fee in the wake of the global economic crisis, the government has been urged to save self reliant oil palm growers in some provinces from bankruptcy.
Bankruptcy is now threatening them because of a sharp drop in the prices of fresh oil palm fruit bunches to lower than production cost.
Yulman Hadi, a member of Golkar party faction in the West Sumatra Legislative Assembly (DPRD), called on the provincial and district administrations of regions which happen to be oil palm fruit production centers, to show their political will in saving thousands of self reliant oil palm growers from bankruptcy's in the current economic slowdown.
"At present, oil palm growers are on the brink of bankruptcy in the wake of the sharp drop in the price of fresh oil palm fruit bunches (TBS) from Rp3000 in September to Rp200 per kg," Yulman Hadi said here on Friday.
"If this condition is ignored, it is not impossible that the farmers will really become bankrupt, affecting the tax revenue and other income of the regional administration, in addition to massive lay offs of workers of the oil palm plantations," he said.
The impact of the US financial crisis turned out to have caused a drop in the price of fresh oil palm fruit bunches which eventually inspired the growers to allow their oil palm fruits to rot in the fields, because the cost they have to pay for harvesting the bunches is much higher than the price of the fruits per kg.
The West Sumatra province is one of palm oil producers in the country with production centers in Pasaman, West Pasaman, Agam, Sijunjung, Dharmasraya, Pesisir Selatan and Padang Pariaman.
The regional administration should not ignore the fate of oil palm growers, as they often fall into the brunt of the crisis, pushing them on the brink of bankruptcy.
Such tragic fate of the oil palm growers does not exists in West Sumatra and farmers in Jambi are likewise affected by the crisis.
Azhar, an oil palm grower living a transmigration resettlement in Sungai Bahar, Muarojambi district, Jambi, said high production cost such as of fertilizers, did not match the price currently standing at Rp300 per kg.
"We have stopped harvesting our oil palm trees this week. It is useless for us to spend time and energy on harvesting the fruits because it will only cause us a loss as the result of the unbelievably deep fall in TBS prices," oil palm grower Azhar said.
He said that the price of oil palm TBS from the growers in September ranged from Rp1,800 to Rp2,400 per kg.
The drop in the price has caused production to pile up in Jambi because it could not sold. A number of palm oil factories which produced crude palm oil (CPO) found it difficult to export the commodity.
Previously, it was also reported that thousands of farmers in Rokan Hulu (Rohul) district, Riau province, Sumatra, were also leaving their oil palm fruits unharvested, allowing it to rot as a result of the sharp decline in the prices of the export commodity.
"About 60 percent of the growers with 118,000 hectares of oil palm plantations in Rohul, now do not harvest their plantations as the price of oil palm fruits has dropped to Rp250 per kilogram," H Erdiman Daulay, chairman of the Indonesian Oil Palm Assication, said.
Therefore, according to Yulman Hadi, a meeting between the governor and district heads representing the oil palm fruit production centers in seven districts should be held to issue a political to be passed on to the central government in Jakarta, he said.
Furthermore, Yulman said the decling prices of oil palm fruits was inseparable from national issues and therefore the solution should also come from central government. "Rescuing the growers from banckruptcy needs serious handling at national level, as the presence of self reliant oil palm growers have contributed to the state's foreign exchange revenue."
Sharing Yulman's views was Syaharman Zamhar, also member of the West Sumatra legislative assembly, who said that the government and relevant agencies were required to seek a solution to how to save crisis-ridden oil palm growers from bankruptcy.
If this condition is ignored, the farmers will automatically fall into a state of uncertainty which may make them feel frustrated with their businesses after growing oil palm trees on their lands. Consequently, the negative side of prolonged frustration could result in a fatal action as what happened in the 1990s during Soeharto's regime where disgruntled clove growers burned their clove crops," he said.
According to him, if the oil palm growers are too frustrated, it is feared they they may also burn their crops unless the government pay attention to their fate.
In order to prevent such destructive action, the government, oil palm businessmen and relevant agencies need to find ways and means to raise the price of fresh oil palm fruit brunches by at least 10 percent of production cost, he added.
In the meantime, Jambi Governor Zulkifli Nurdin recently said CPO as an export commodity was affected by the impact of the global financial crisis. Therefore, the regional government of Jambi is trying to take anticipatory steps in an effort to prevent TBS overproduction that would cause a loss to the growers.
The governor had ordered the chief of Jambi's Plantation Service to take steps and establish coordination with all district heads or CPO exporters.
Another step which needs to be taken is forming a consortium which can inject fresh fund for the purchase of fresh oil palm fruit bunches from the farmers at a price higher than their production cost, to enable them to get some profit, Syaharman said.
The consortium's capital for the purchase of TBS bunches was expected from oil palm businessmen who had enjoyed big profits from the crude palm oil business. "Assistance will enable the farmers to continue with their activities, thus saving them from collapse," he said.
"Under these circumstances, the understanding and nationalism of businessmen to rescue the farmers from bankruptcy is highly expected," he added.
According to Syaharman, the crude palm oil businessmen will not suffer a loss if they help the farmers through the consortium, because the fresh oil palm fruit bunches they have solf will eventually go to the factories belonging to them which for the time being could be kept as stock in the form of crude palm oil.
Bankruptcy is now threatening them because of a sharp drop in the prices of fresh oil palm fruit bunches to lower than production cost.
Yulman Hadi, a member of Golkar party faction in the West Sumatra Legislative Assembly (DPRD), called on the provincial and district administrations of regions which happen to be oil palm fruit production centers, to show their political will in saving thousands of self reliant oil palm growers from bankruptcy's in the current economic slowdown.
"At present, oil palm growers are on the brink of bankruptcy in the wake of the sharp drop in the price of fresh oil palm fruit bunches (TBS) from Rp3000 in September to Rp200 per kg," Yulman Hadi said here on Friday.
"If this condition is ignored, it is not impossible that the farmers will really become bankrupt, affecting the tax revenue and other income of the regional administration, in addition to massive lay offs of workers of the oil palm plantations," he said.
The impact of the US financial crisis turned out to have caused a drop in the price of fresh oil palm fruit bunches which eventually inspired the growers to allow their oil palm fruits to rot in the fields, because the cost they have to pay for harvesting the bunches is much higher than the price of the fruits per kg.
The West Sumatra province is one of palm oil producers in the country with production centers in Pasaman, West Pasaman, Agam, Sijunjung, Dharmasraya, Pesisir Selatan and Padang Pariaman.
The regional administration should not ignore the fate of oil palm growers, as they often fall into the brunt of the crisis, pushing them on the brink of bankruptcy.
Such tragic fate of the oil palm growers does not exists in West Sumatra and farmers in Jambi are likewise affected by the crisis.
Azhar, an oil palm grower living a transmigration resettlement in Sungai Bahar, Muarojambi district, Jambi, said high production cost such as of fertilizers, did not match the price currently standing at Rp300 per kg.
"We have stopped harvesting our oil palm trees this week. It is useless for us to spend time and energy on harvesting the fruits because it will only cause us a loss as the result of the unbelievably deep fall in TBS prices," oil palm grower Azhar said.
He said that the price of oil palm TBS from the growers in September ranged from Rp1,800 to Rp2,400 per kg.
The drop in the price has caused production to pile up in Jambi because it could not sold. A number of palm oil factories which produced crude palm oil (CPO) found it difficult to export the commodity.
Previously, it was also reported that thousands of farmers in Rokan Hulu (Rohul) district, Riau province, Sumatra, were also leaving their oil palm fruits unharvested, allowing it to rot as a result of the sharp decline in the prices of the export commodity.
"About 60 percent of the growers with 118,000 hectares of oil palm plantations in Rohul, now do not harvest their plantations as the price of oil palm fruits has dropped to Rp250 per kilogram," H Erdiman Daulay, chairman of the Indonesian Oil Palm Assication, said.
Therefore, according to Yulman Hadi, a meeting between the governor and district heads representing the oil palm fruit production centers in seven districts should be held to issue a political to be passed on to the central government in Jakarta, he said.
Furthermore, Yulman said the decling prices of oil palm fruits was inseparable from national issues and therefore the solution should also come from central government. "Rescuing the growers from banckruptcy needs serious handling at national level, as the presence of self reliant oil palm growers have contributed to the state's foreign exchange revenue."
Sharing Yulman's views was Syaharman Zamhar, also member of the West Sumatra legislative assembly, who said that the government and relevant agencies were required to seek a solution to how to save crisis-ridden oil palm growers from bankruptcy.
If this condition is ignored, the farmers will automatically fall into a state of uncertainty which may make them feel frustrated with their businesses after growing oil palm trees on their lands. Consequently, the negative side of prolonged frustration could result in a fatal action as what happened in the 1990s during Soeharto's regime where disgruntled clove growers burned their clove crops," he said.
According to him, if the oil palm growers are too frustrated, it is feared they they may also burn their crops unless the government pay attention to their fate.
In order to prevent such destructive action, the government, oil palm businessmen and relevant agencies need to find ways and means to raise the price of fresh oil palm fruit brunches by at least 10 percent of production cost, he added.
In the meantime, Jambi Governor Zulkifli Nurdin recently said CPO as an export commodity was affected by the impact of the global financial crisis. Therefore, the regional government of Jambi is trying to take anticipatory steps in an effort to prevent TBS overproduction that would cause a loss to the growers.
The governor had ordered the chief of Jambi's Plantation Service to take steps and establish coordination with all district heads or CPO exporters.
Another step which needs to be taken is forming a consortium which can inject fresh fund for the purchase of fresh oil palm fruit bunches from the farmers at a price higher than their production cost, to enable them to get some profit, Syaharman said.
The consortium's capital for the purchase of TBS bunches was expected from oil palm businessmen who had enjoyed big profits from the crude palm oil business. "Assistance will enable the farmers to continue with their activities, thus saving them from collapse," he said.
"Under these circumstances, the understanding and nationalism of businessmen to rescue the farmers from bankruptcy is highly expected," he added.
According to Syaharman, the crude palm oil businessmen will not suffer a loss if they help the farmers through the consortium, because the fresh oil palm fruit bunches they have solf will eventually go to the factories belonging to them which for the time being could be kept as stock in the form of crude palm oil.
