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Negative campaign on Indonesian CPO associated land clearing and environmental degradation have an impact on CPO exports flow to Europe in the first quarter of this year.

Executive Director Eating Indonesian Oil Industry Association (GIMNI) Sahat Sinaga said in the first quarter of this year realisasisi palm oil exports amounted to 4.6 million tonnes. The figure was down from the realization of the same quarter of 2009 exports of 4.8 million tonnes sebsar.

“Down, because of the impact of European markets starting CPO disrupted by negative campaigning. They divert supplies to other products,” he said in Jakarta on Monday (10 / 5).

In addition to decreasing exports, Sahat said the current investments in this sector are also anxiously enough. She said at this time many investors who hengkamg abroad and chose to invest in other sectors.

“People were running out of the country, one of them because of the imposition of an onerous duty out,” he said.

BK Sahat proposed between the raw product (crude) with other dairy products such as cooking oil should have been the difference between 3-5%. While for the next product should be processed there is a difference of 70-10% DM. While for special olein fat and biodiesel are not subject to BK.

“Thus, government programs to encourage investment in palm oil downstream sector and boost exports of downstream products will be quickly accomplished. We’ve been proposing this since long but no too,” he said.

He explained that Indonesia’s CPO production had reached 21 million tons per year and most of the export, only about five million tons are absorbed domestically for cooking oil and soap.

“Second quarter sales not sure yet. Because the European market is all that before,” he said.