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Indonesia’s palm oil seeds sale seen stagnant in 2014

JAKARTA (Rambu Energy) – Forum Communication for Indonesian Seeds Producers (FKPBSI) expects palm oil seeds sale to reach 120 million in 2014, unchanged from last year.

Tony Liwang, secretary general of FKPBSI, was quoted by Kontan as saying that the lack of replanting program by a number of plantation companies would result in stagnant sale. “I don’t expect there would be an increase in sales this year,” said Tony.

He also blamed on the government’s policy on moratorium of peatland plantation area as well as the limitation on land ownership of a maximum of 100,000 hectares per group. “This reasons also put a brake on palm oil seeds sale this year,” Tony said.

The Forestry Ministry has issued a ruling that limits the land concession to a maximum of 50,000 hectares per group outside Papua and 100,000 hectares per group in Papua, starting from January 2014.

At present there are 10 recognized domestic palm oil seeds producer, namely Indonesian Oil Palm Research Institute (PPKS), Socfin Indonesia, London Sumatera (Lonsum), Bina Sawit Makmur (Sampoerna Agro), Dami Mas (Sinar Mas Agro Resources and Technology), Tunggal Yunus Estate (Asian Agri Group), Tania Selatan (Wilmar International, Bakti Tani Nusantara, Sarana Inti Pratama (Salim Group) and Sasaran Eksan Mekarsari (Mekarsari).

Witjaksana Darmosarkoro, director of PPKS, said his institution expects to sell 30 million seeds in 2014, the same with last year. Given that there are 10 major seeds producer in this country, selling  30 million seeds is quite an achievement.

He explained that on average each hectare of land requires 200 seeds. Therefore, assuming that if this year’s palm oil seeds sale reach 120 million, the plantation area would expand by 600,000 hectares.

In addition, domestic seeds supply is expected to be crowded by palm oil imported seeds from Malaysia, Thailand and Papua New Gunea. Tony Liwang said last year Indonesia imported 6 million of palm oil seeds. (*)

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