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Indonesian vegetable oil refiners demand more ports

October 28, 2013

The Indonesian Vegetable Oil Refiners Association (GIMNI) has demanded that the government of Indonesia build new seaports to cope with increasing commodity shipments and cut extra costs that total US$300M stemming from port inefficiencies, Cocommunity reported in August.

The Indonesian Vegetable Oil Refiners Association (GIMNI) has demanded that the government of Indonesia build new seaports to cope with increasing commodity shipments and cut extra costs that total US$300M stemming from port inefficiencies, Cocommunity reported in August. Apart from modernising existing seaports, the government would need to set up at least three seaports equipped with special terminals for palm oil exports to boost efficiency and anticipate future export volumes, spokesman for the association, Sahat Sinaga, said.

Poor infrastructure is a long-unresolved problem in Indonesia that economists say can drag down the country’s growth, the Cocommunity report said. At present, only a small number of seaports are serving shipments of commodities, including palm oil. Among the few is Dumai Port in Dumai, Riau, which last year delivered around 6.3M tonnes of crude palm oil (CPO) and its product overseas.

Another seaport in Riau has been built by Wilmar Group in its Dumai Industrial Park with a palm oil bulking terminal of 270,000 tonnes/year.
Sahat said that if the ports were to be built, they would be potentially located in Mandailing Natal, North Sumatra; Pontianak, West Kalimantan; and Bitung, North Sulawesi, to transport palm oil output on each island.

Mandailing Natal is home to a significant coverage of oil palm plantations.


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