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Today's Headlines Cacao

  • Indonesian Government Sets Limits to Plantation Sizes of 11 Commodities

    The Indonesian government has limited the surface area of plantations that can be owned by a company or by a group of companies that have one shared management. This new regulatory framework, stipulated in Permentan No 98/Permentan/OT.140/9/2013 with regard to plantation estates' licensing guidelines, is applied to 11 commodities: tea, sugarcane, oil palm, coconut, cotton, rubber, coffee, cacao, cashew nuts, pepper as well as cloves. The new law has been approved by the minister of Justice and Human Rights Amir Syamsudin.

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  • Forecasts Suggest that New El Niño Cycle May Be Rather Strong in 2014

    Australia's Bureau of Meteorology is increasingly convinced that the world needs to prepare for a new El Niño cycle. According to the institution, the impact of this new cycle will be felt starting from July 2014 and may continue through the winter. Also the European Center for Medium range Weather Forecasting (ECMWF) and the US Climate Prediction Center stated that chances of a new El Niño cycle in 2014 are becoming higher, although it is too early to provide an indication of this year's strength of the weather phenomenon.

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  • Investments in Indonesia Expected to Exceed IDR 100 Trillion in Q1-2014

    Mahendra Siregar, Head of the Indonesia Investment Coordinating Board (BKPM) is optimistic that realized investment in Indonesia can reach over IDR 100 trillion (USD $8.6 billion) in the first quarter of 2014, particularly supported by foreign direct investment (FDI) in the country's automotive and electronics sectors. Siregar uttered his optimistic view at the groundbreaking of the new Toyota factory in Karawang (West Java) on Tuesday (25/02). Foreign investors remain buoyant on the potential of Indonesia's rapidly expanding consumer force.

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  • Update: Cacao Price Up, Indonesia Stimulating Imports to Supply Industry

    The price of cacao has risen by almost 20 percent since the start of June 2013 and is now around its highest level of 2013. Moreover, the cacao price is expected to keep increasing as analysts foresee a shortage of the commodity on the global market for the next two years. Indonesia, the world's third-largest cacao producer, is considering to lower the import duty for cacao to meet rising demand of its domestic cacao processing industry (amid limited growth in cacao production). Currently, the country levies a 5 percent import duty on cacao.

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