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Welcome to Perkebunan Nusantara VIII
Myth 16. Foreign Currency Shares Generated by Indonesian Palm Oil Industry Relatively Small Compared

 

Myth

Foreign exchange generated by the Indonesian palm oil industry is relatively small compared to other export industries. So the export of Indonesian palm oil is not very important for the national economy.

Fact

Foreign exchange of the country is a net exports believe the value of exports is reduced by the value of imports. An export industry, although contributing to the value of large exports, if the value of imports is also large then the net will generate a small foreign exchange can even be a foreign exchange deficit.

In the Indonesian economy, the non-oil sector (including the palm oil sector) is a key sector for generating foreign exchange. During the period of 2008 - 2014 (Table 3.4) The net exports of the non oil and gas sector fluctuated but still net was surplus.

In the Indonesian economy, the non-oil sector (including the palm oil sector) is a key sector for generating foreign exchange. During the period of 2008 - 2014 (Table 3.4) The net exports of the non oil and gas sector fluctuated but still net was surplus. 

 

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Challenges of Plantation Public Relations

 

 

EXISTENCE of estate agribusiness companies in individual areas is often perceived as an enclave community with feudal culture that is maintained. The impression closed, among other showed difficult contacted mass media which intends to ask for clarification on a particular issue and the continuing unresolved upheaval with the surrounding community. Although efforts have been implemented, the perceptions that until now has not been able to disappeared from the minds of the public, so it is necessary to still be relevant to discuss strategiey or tactics to what that is able to ward off various problems that can be not in accordance with the fact factual in the field.

Public Relations (PR) is one of the efforts which might be considered to straighten out the back of one of them, to the realization of the image a good for the company. The mutual relationships between the company and the stakeholders need to be redesigned in line with the increasingly complex and dilemmatic challenge of the strategic environment.

Stakeholders referred not only to internal stakeholders (workers), but also to external parties ranging from farmers, suppliers of goods / services, product buyers, non-governmental organizations, governments, parliaments, mass media, universities, research centers, and others -other. Attempts to straighten or clarify some of the issues that are sticking out and are not an objective picture of what is going on in the corporate environment can only be effective and productive if the goals to be achieved are clear and measurable.

Role Shifting

Plantation agribusiness companies have been repeatedly metamorphosed. The orientation of becoming an export-oriented export-oriented plantation crop producer after its introduction of the PIR-Bun pattern in the 1980s. The company is not only obliged to foster farmers around the efforts to increase productivity and marketing of plantation products, but also active involvement in the development of the garden, both for local farmers and transmigrants, as plasma. The partnership relationship between nucleus and plasma is synergistically proven by the number of potential gardens not only capable of increasing the income and welfare of farmers, but also the pioneering of plantation companies in the acceleration of regional economic growth as reflected by the openness of isolated areas of isolation and multiplier effects that are in the form of expanding employment and chance of trying.

The most prominent role shift occurred in sugar mill managers (PG). If, prior to 1998, farmers in the historical area of PG were exposed to the obligation to plant sugar cane for the fulfillment of raw materials, all of whose designs and policies came from above, now they are no longer inherent. The farmers are free to work out what kind of cultivation is the most profitable. The relationship between the PG and the farmers is a partnership based on cooperation in the equality of roles that are mutually beneficial, mutually reinforcing, and mutual trust. Besides being a sugar cane farmer and assisting with the marketing of results, PG's tasks include the provision of superior seeds, guarantor (avalist) of farmers' credit, and technical counselors. PG also realized that farmers' farming competitiveness became the key word to maintain and preserve the company. Is not the income derived largely from the services of peasant sugar cane milling?

Although the role shift has taken place, new challenges are always emerging, let alone post-1998 reformasi Indonesia made what in the past was sacred and considered taboo to have overturning value. From all regulated and protected, now everything must be faced on its own. Solutions by inviting all parties to understand the factual conditions, the willingness to give attention, and help create a good image has become a new demands that the company must create. In the name of trade liberalization and the consequences of economic integration into global capitalism, plantation companies are unlikely to redefine the old and well-established ways in the past for the changing world conditions. This is where PR plays to build mutual communication is dialogical with stakeholders.

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Ensure to Continue Growing with Tea: The Other Side of Tea Indonesia's Face

 

Agriculture has the most basic task of supporting humanity and mobilizing the economy in rural areas. So the indicator of success is high productivity both quantity and quality and man faat economy that is providing employment for the community in the surrounding area the average accessibility to education is still very limited. The labor force in this group is not easy to access and penetrate the labor needs in the manufacturing sectors requiring adequate knowledge and skills. For a particular group of people, working in the agricultural sector is the only option. Therefore, the agricultural sector should not fail in conducting its business in order to guarantee its function as a source of income for its owners, to welfare its stakeholders and to function actively in managing and preserving natural resources.

indonesia is one of the few countries to gain the luxury of natural resources. The agro-climatic conditions and soil fertility allow so many different plant species to grow, develop and produce properly.

This paper is intended to provide views of different sides related to the inevitability that the plantation business in Indonesia is marginalized. Even worse conditions experienced by companies that rely on plantation commodities today, in the eyes of many observers less popular is the tea. This commodity over the last two decades is considered a failed commodity for plantation managers for profit.

Poor market prices often serve as a major cause for producers (plantation companies) behind the poor performance of tea and cocoa in generating revenue. While in the eyes of buyers the weakness of the struggling price of Indonesian tea in the market is due to the low quality of Indonesian tea amid abundant supply of tea in the market that is produced both from new debutant countries and productivity increases from old producers.

The vicious circle: eggs and chicken

In the midst of a weakening world economy, running a company is not an easy matter, especially if it relies on unpopular commodities such as tea. The low price of the product and on the other hand the ever-rising cost with its own character becomes an irrefutable reason and within certain limits makes the manager of the company can lose its orientation in doing business.

Often we use the analogy of eggs and chickens to represent quality problems on the one hand and price on the other. Manufacturers is responsible for quality and the buyer is responsible for the price. But in fact the market has its own rules especially if the plantation products are still characterized by bulk and become common product (commodity) then the market is the price determinant. Under these circumstances, corporate leaders' decisions take on a very essential role whether to take a position as a productive chicken or wait for a price verdict on the eggs produced. Often people say that tea is a tea, each of which has its own market quality. An important key for decision makers is the belief in the advantages and disadvantages of the company.

Paradigm and Shackles Stigma in Tea Agribusiness

In the plantation business paradigm, there is a lot of stigma about products, processes, buyers and markets formed by the assumptions used in its time. But over time, the existing paradigm has begun to shift because the assumptions used in the past can not be used anymore. The demand-supply balance is changing, user and consumer preferences are changing, positions against competitors is changing, cost structure and cost control change, even climate change.

Tea as long managed properly, both in terms of production, marketing, and product development is still profitable. Manufacturers must be open with changes not to be shackled by old stigmas about grading, buyer preferences, quality and so on. People used to drink tea by brewing, now the consumption of teabags grows extraordinary and clear grade is used as ingredients of brewed tea and different teabags. Examples of such facts can be withdrawn as a reference in the determination of production policies. Do not get stuck on the stigmatization of grade while at the same time the user preference is ignored. Manufacturers can adjust demandable tea quality specifications into grades that may be made more cost-efficient, thus turnover is high and business can continue to grow. This does not mean we sacrifice good quality, we are able to produce good quality but look first what the market needs.

The triumph of tea agribusiness is not as good as in the past, but this condition suggests both challenge and opportunity. What should be well understood first is what exactly is the indicator of glory in question? What is the productivity, the area of the area? quality ?, selling price, or what ?. Sometimes we find statistical data and interpret it superficially. We see the results of tea auction in the KPB then compared with the results of tea auction other countries, and then concluded the price of Indonesian tea is lower. We see the quality of Indonesian tea products and compared to Sri Lankan tea production, for example, and generally it can be concluded that the quality of Sri Lankan tea is better. This means that tea is good quality is also good, but in fact the price is not everything, the sustainability of the tea plantation business is also heavily influenced by the cost of production. Good tea is made with good raw material quality and the right process, good raw material picking contains limited quantity consequences and this could potentially increase production costs. Good tea is made with good raw material quality and the right process, good raw material picking contains limited quantity consequences and this could potentially increase production costs. Have we ever compared our production costs with other state manufacturers ?, how is their cost structure? do we also know whether they are actually a profit or loss ?, and many more things. Make no mistake! their prices are high, their quality is good but their production cost is also high, so is their profit also good ?. If these questions can be answered we may be carried on the more precise reason to be in what way tea agribusiness in Indonesia should be managed. Not to mention the commodity development policy (including the tea) which has been fully based on the internal policies of individual plantation companies rather than national entities representing tea agribusiness in Indonesia. If we imagine how the existing tea garden was built along with all the facilities in its time it will imagine how hard the effort is done and how big the constraints faced that could be much heavier than the obstacles that we now face. Every business activity in different time periods will face different problems. We must see it thoroughly.

 
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