Jun 30, 2013

Fuel Up, Supply Distracted Coffee Production

Rising prices of fuel oil (BBM) last week which was originally subsidized Rp 4,500 to Rp 6,500 turned out to disturb Indonesia's coffee industry. According to the Brand Manager of PT Nestle Indonesia Nescafe, Michael Suwito, the problems have an impact on the supply of production. 

"Wheel of sustainability, particularly the upstream sector, a little disturbed," said Michael told Tempo in the launch campaign The Nescafe Plan in Lampung, Thursday, June 27, 2013. 
Processes upstream is, said Michael, a coffee-growing process that farmers do. According to him, the fuel price hike issue has a direct impact on the farmers themselves, not the industry. "There has been no exact numbers, but clearly the impact to farmers," he said increase in fuel, according to Michael, it is inevitable. However, the question now is how the industry players and corporations to address it. 

Secretary General of the Ministry of Industry (Kemenperind), Ansari Bukhari, said the rise in fuel oil (BBM) a premium of 44 per cent only lead to higher production costs by an average of 1.2 percent. "Not too significant to the production sector," he said.reason, Ansari explained, the industrial sector have long used non-subsidized fuel. Thus, the industrial sector has understood how to cope with rising fuel prices. "We're not worried," said Ansari. 

Industry Minister Mohammad Suleman Hidayat said the coffee industry is an agro industries prioritized by the government. "It is set in the Presidential Regulation (PP) No. 28 of 2008 on the National Industrial Policy," he said.

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