ABS-CBN Corp. will soon air some of its news updates and short entertainment clips on video screens inside trains at the Metro Rail Transit Line 3 (MRT-3), Light Rail Transit Line 1 (LRT-1) and Line 2 (LRT-2).
The Lopez-led media giant signed an agreement yesterday with international marketing firm PHAR Partnership, Inc. to provide its video content to be streamed on Tube.
Tube is the in-train television network of PHAR, which are small screens mounted on the walls inside MRT and LRT trains.
“The partnership is consistent with the company’s continuing efforts to venture into groundbreaking new channels for convenient media consumption of Filipinos across the country,” ABS-CBN said in a statement yesterday.
It noted there are now more than 1,000 Tube screens distributed across the three train lines, which will display news, weather reminders, traffic updates and entertainment clips of ABS-CBN to about 1.3 million commuters daily.
In the first half of the year, ABS-CBN posted an attributable net income of P1.55 billion, up 83% on the back of strong returns from advertising sales. — Denise A. Valdez
AS CHINA moves toward a more market-based approach to determining the cost of money in its economy, one metric suggests corporate debt is going in the opposite direction.
Some 17% of company bonds in the first half were sold at yields at least 50 basis points below rates in the secondary market, according to data from China Chengxin International Credit Rating Co. That’s a jump from 9.9% in the second half of 2018. Globally, only the most in-demand issuers can raise funds in line with where their existing debt is trading; almost everyone pays a premium.
Analysts interviewed by Bloomberg said the trend shows the distorted credit risk pricing as cash-strapped firms turn to opaque ways to raise funds. One phenomenon is related to a practice known as structured issuance, where companies subscribe to their own offerings to inflate demand. It’s storing up more mispriced debt in China’s financial system, cutting against efforts to foster markets where funding costs correspond with a company’s prospects.
“A big yield divergence suggests the coupon rate of the new bond does not reflect the fair market value it is supposed to indicate, nor the actual risk of the debt,” Yang Hao, a fixed-income analyst at Nanjing Securities Co., said in an interview.
Regulators have been seeking to curb structured sales. Pan Gongsheng, deputy governor of People’s Bank of China, said China should improve its credit rating and risk pricing mechanisms to make hidden debt issuance cost more explicit, according to a Caixin report on Aug. 9.
The yawning gap can be seen in China Wanda Group Co. In July, the tire maker sold a three-year note with a coupon at 6.8%, according to bond issuance document on the Shenzhen stock exchange. Its three-year bond due July 2021 traded at about 15.5% that same day, showing a yield gap of more than 800 basis points, Bloomberg-compiled prices show.
Oceanwide Holdings Co., which printed a note at 7.5% last month, saw its similar bonds trading at a yield higher than 20%. Officers responsible for securities information disclosure at China Wanda and Oceanwide Holdings declined to comment when contacted by Bloomberg.
BAOSHANG EFFECT
Another contributor to the trend may have been secondary market distortions caused by the collapse of Baoshang Bank Co. The shock seizure sparked a wave of risk aversion as bond defaults in China hit a four-month high, marring refinancing prospects at weaker firms.
Secondary market bond yields of some of these companies jumped higher than their new issuance cost as investors cut their risk tolerance, said Mei Dongya, executive director at Shanghai Maodian Asset Management Co. “Some institutions were selling off bonds in need of cash after the bank seizure triggered a liquidity crunch,” Dongya said.
To be sure, structured debt issuance is just one method that troubled companies adopt to sell debt. “Many investors buying bonds not only pursue gains, but also out of some non-economic concerns,” said Shen Chen, a partner at Shanghai Maoliang Investment Management.
For Lu Lingge, an analyst at China Chengxin, such companies may find it hard to keep financing sustainable. “To fix the distortion not only needs a long-term debt pricing mechanism, but more importantly the information disclosure transparency”, she said, adding that it will improve market efficiency and boost pricing discovery. — Bloomberg
We are in a bind in introducing a new performance appraisal system for our employees. Some managers think it’s best to focus on team performance, while others believe we should prioritize measuring individual accomplishments. In your opinion, what should be the best approach and priority in assessing performance – team or individual? – Serviam.
In one of his famous speeches, former US president Ronald Reagan told a story about a shoemaker who made a new pair of shoes for him when he was a teenager. The cobbler asked if Reagan wanted a round or square toe. Reagan was unsure, so the cobbler told him to return in a day or two and let him know.
A few days later, the cobbler saw the young Reagan on the street and asked what he had decided. Reagan was still undecided. The cobbler said the shoes would be ready in two days. When Reagan picked up the shoes, he was surprised to discover that one had a round toe and one had a square toe.
Taking it as a lesson, he told himself: “If you don’t make your own decisions, somebody else makes them for you.” Indeed, you have to make your own decision based on the total circumstances of your situation. Besides, I’m not privy to all possible elements that could make or unmake your decision. Be that as it may, allow me to give you some basic and generic guidelines that could help you arrive at an intelligent decision:
One, reconcile the best of both the individual and team performance assessment. It’s not a zero-sum game or one over the other. Each one has its own pros and cons. For one, if you focus on individual contributions you could destroy team spirit. On the other hand, if you focus on team contributions, you allow deadwood to ride on the achievements of the team.
Two, create an objective performance measurement tool for individual and team. Set guidelines on how teams and its individual members would define their target, standards, resources to be used, and timelines to be observed, among others. It’s also necessary that the pertinent policy and forms to be used are made corporate-wide for consistency and uniformity of application.
Three, divide the responsibility of assessing team and individual performance. Top management should be responsible for evaluating team achievements, while the team should handle measuring the individual performance. In doing the latter, all team members may conduct secret assessments of their colleagues using an objectively-designed form. The result is analyzed by top management.
Four, conduct team and individual performance appraisals once every quarter. Once a year or even once every six months is too long. Many of us are focused on the short-term, rather than the long-term horizons. Therefore, make it a quarterly assessment. Frequent assessments allow those concerned to immediately identify their weaknesses and correct them accordingly. Then level up by doing the appraisal once every two to three months.
Five, commend high-performing teams and individuals in public. And castigate tailenders in private. Take the time to do the job right. In doing this, be sure to evaluate employees based on their contributions against the mutually-accepted objectives. People have different strengths and abilities, and should be rewarded based on their accomplishments.
Six, evaluate the total performance of both individuals and teams. The key word is “total.” This means you don’t have to fall into the trap of rating people based on their single outstanding achievements or failures. By the same approach, avoid rating them based on their most recent performance or initial accomplishments.
Last, ask both individuals and their teams for their performance plan. Establish a culture of co-ownership. This approach helps establish rapport with everyone and create two-way communication process with top management. Otherwise, they may think of the whole situation as nothing but a pure lecture session and think negatively about it all the way.
Whatever happens, you must consider the fact that bringing employees to their maximum potential doesn’t start and end with the performance evaluation process. It’s imperative that to provide continuous feedback on everyone’s performance throughout the year, even outside of the performance evaluation period.
However, the extent to which your top management will do this depends on the specific needs of everyone. In any event, you only have to be constructive in giving the necessary guidance, without necessarily micro-managing everyone.
ELBONOMICS: The purpose of performance appraisal is to prepare future leaders.
TWIN Bill Theater presents Mark St. Germain’s Dancing Lessons on Aug. 16 to 24 at Power Mac Center Spotlight in Circuit Makati. Directed by Francis G. Matheu, the play follows Ever Montgomery, a young science professor with special needs who decides to take dancing lessons to get through an upcoming awards dinner he will host. However, his instructor, Senga, is recovering from an injury that may prevent her from dancing permanently. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).
Mabining Mandirigma, A Steampunk Musical
TANGHALANG Pilipino restages Mabining Mandirigma, A Steampunk Musical about the life of hero and “sublime paralytic” Apolinario Mabini at the Main Theater of the Cultural Center of the Philippines until Sept. 1. The 2019 run stars Monique Wilson as Mabini. Arman Ferrer will be reprising his role as Emilio Aguinaldo, alternating with David Ezra. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).
Dani Girl
THE Sandbox Collective restages Michael Kooman and Christopher Dimond’s Dani Girl at the Carlos P. Romulo Auditorium, RCBC Plaza in Makati City until Sept. 1. Directed by Toff de Venecia, the musical centers on nine-year-old Dani who sets off on a quest to find her hair and figure out the answer to the question, “Why is cancer?” She journeys with fellow warrior and best friend Marty, through lightsaber duels, game shows, and blasting off to outer space. The play stars Rebecca Coates as Dani alternating with Kyle Napuli. Luigi Quesada returns as Marty, alternating with Daniel Drilon. For inquiries, call 0956-200-4909, 586-7105 or sab@thesandboxco.com.
Rak of Aegis
THE hit Pinoy jukebox musical Rak of Aegis returns to the PETA Theater Center, with ongoing performances until Sept. 29. The show uses the songs of the Aegis band such as “Halik,” “Sinta,” and “Basang-Basa sa Ulan,” to tell the tale of a perennially flooded barangay. This latest production features a mix of original cast members including Aicelle Santos and Kim Molina, Isay Alvarez-Seña and Sweet Plantado-Tiongson, Robert Seña and Renz Verano, and Kakai Bautista and Neomi Gonzales. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).
MaArte oPen House
THERE will be fashion and food finds at the MaArte oPen House bazaar this weekend.
FROM Aug. 16 to 18, 10 a.m. to 8 p.m., the spirit of the Syquia apartments’ open house parties lives again in the Peninsula Manila with MaArte oPen House. The MaArte fair will see 41 guest rooms of the hotel closed off for about 60 exhibitors, recalling the parties of the past. Among the items one will find there are Aranaz bags, ceramics by Bangay, jewelry by DSV Studio, watches by Ibarra, jewelry by Natalya Lagdameo, and scents by Oscar Mejia. New fashion brands that are participating include FDCP members Joel Escober, Lally Dizon, Maco Custodio for Pinoy ManCave, Coco and Tres, Pika Pika + Pinta, Vesti, and Evangeline Austria. This year’s fair will also feature food items by Auro Chocolates, Green Babes, and Felicisimo Gourmet Homecooking. Alongside its annual fundraiser, the Museum Foundation of the Philippines, Inc. will also hold MaArte Talks, conversations with Joey de Castro (Aug. 16), Tweetie de Leon-Gonzalez of TdLG (Aug. 17), and Nico Moreno of Ibarra Watches (Aug. 18), at 2:30 p.m., at The Peninsula Lounge Area, 2F Ayala Wing.
Rustans.com launch
RUSTAN’S will hold an online shopping party on Aug. 17, 6 p.m. to midnight, to launch Rustans.com. The upscale department store’s new online store features a curated selection of Rustan’s brands and products. To demonstrate how easy it is to shop at Rustans.com, the online store is having a digital party hosted by lifestyle and travel blogger Nicole Andersson, style purveyor Tessa Prieto-Valdes, Rica de Jesus of Heart2Heart, and Jaja Chiongbian-Rama. The Live Shopping Party will also feature discounts and drops throughout the night which shoppers can follow on @rustansph Facebook and Instagram accounts. They can also sign-up for the event newsletter at rustans.com ahead of the event. Special offers and discounts of up to 60% will be available for one night only. Over 140 brands are now available online.
Cine Argentino
CINE ARGENTINO returns to Shangri-La Plaza mall at the Red Carpet from Aug. 14 to 18, for its fifth year with a lineup of diverse films. In partnership with the Embassy of Argentina and the Film Development Institute of the Philippines, the Shang is screening five feature films produced by Argentinian filmmakers that showcase different perspectives of their country’s culture. The five films are: biographical crime film El Clan (The Clan) starring Guillermo Francella and Peter Lanzani, and directed by Pablo Trapero; Academy Award nominee for Best Foreign Language Film and Cannes Film Festival Palme d’Or-nominated Relatos Salvajes (Wild Tales), written and directed by Damián Szifron; Dos Mas Dos (Two Plus Two), directed by Diego Caplan; Ariel Winograd’s Mamá Se Fue De Viaje (10 Days Without Mom); and, La Luz Incidente (Incident Light) directed by Ariel Rotter.
OPPO Reno Sunset Rose X M·A·C workshop
OPPO is collaborating with cosmetics brand M·A·C for a beauty workshop to be integrated into the Reno Collective Pop-Up Art Exhibit on Aug. 17-18 at SM Mega Fashion Hall. This will be the third leg of the pop-up exhibit featuring immersive art installations, with activities and interactive spaces especially dedicated to the Reno Sunset Rose colorway. Celebrity makeup artists RB Chanco and Sylvina Lopez will doll up several girls from the Reno Collective with M·A·C, creating looks inspired by the limited edition OPPO Reno in Sunset Rose. This interactive workshop will allow participants to learn the creative process behind applying makeup from professional artists and use the same techniques to recreate the OPPO Reno in Sunset Rose look using M·A·C products. The workshop — on Aug. 17 and 19, 2 p.m., at the SM Mega Fashion Hall — will be open to the public with a limit of 20 slots on a first come, first served basis. Exclusive special treats also await the first five in line. Interested parties may proceed to the dedicated OPPO X M·A·C booth as soon as the exhibit opens. Workshop participants will also experience a magazine-quality portrait shoot with Miguel Alomajan. The limited edition OPPO Reno in Sunset Rose retails at P26,990 and is available in 55 select OPPO concept stores nationwide.
National Book Store’s Thank You Sale
NATIONAL Book Store is holding a Thank You Sale with discounts of up to 50% on books, school and office supplies, imported brands, and more in all 240 branches across the country. Colored stickers highlight the discounts — blue for 10% off, white for 20% off, yellow for 30% off, and orange for 50% off. The sale runs from Aug. 15 to Sept. 1.
DAVAO CITY — Holcim Philippines, Inc., which has just completed the expansion of its plant here, is preparing to start similar improvements in its Lugait Cement Plant in Misamis Oriental as it expects continued growth in Mindanao demand.
William C. Sumalinog, Holcim Philippines senior vice-president for sales, said the demand growth comes from both private sector and the government’s Build, Build, Build program.
“For so long, Visayas demand has always been bigger than Mindanao’s. But for the last three years, we are now bigger than Visayas,” Mr. Sumalinog said at the Habi at Kape media forum Wednesday.
“We (Mindanao) are now… maybe one million (cement bags) higher per month or 12 million bags more in annual consumption than Visayas,” he said.
Nationwide, Luzon accounts for about 65% of the company’s sales while the remaining 35% comes from the Visayas and Mindanao combined.
Mr. Sumalinog said the higher demand in Mindanao comes not just from the two primary cities of Davao and Cagayan de Oro, but also from Zamboanga, Dipolog, Butuan, and other secondary cities.
Philippine Statistics Authority data show that construction growth in the four regions in Mindanao from 2017 to 2018 at 18.1% in Davao, 16.4% for what is now the Bangsamoro Autonomous Region in Muslim Mindanao, 16.3% in Northern Mindanao, and 13.6% in Soccsksargen (SouthCotabato-Cotabato-Sultan Kudarat-Sarangani-General Santos City).
Assistant Secretary Romeo Montenegro, deputy executive director of the Mindanao Development Authority, said the national government has allocated P761 billion for infrastructure projects in the southern islands for 2017-2022.
“With these figures alone, we can expect the extent of (cement demand in) Mindanao,” Mr. Montenegro said at the same forum.
Mr. Sumalinog said the rule of thumb is that between 10%-12% of the cost of construction goes to cement.
“So that’s about P80 billion (of cement demand for government projects alone),” he said, adding that Holcim hopes to avoid running out of inventory in Mindanao.
The listed cement maker spent P1.5 billion on its Davao plant expansion and has budgeted a combined $300 million for the expansion of the plants in Misamis Oriental and Bulacan. — Carmelito Q. Francisco & Maya M. Padillo
SENATOR Cynthia A. Villar said the funds set aside for sugar industry development have been poorly utilized, but added she still backs a budget of P2 billion for 2020.
“Ang maipu-push lang namin sa budget hearing ibigay iyong P2 billion because that is the law (The law requires us to fund sugar development for P2 billion),” she said, referring to the Sugar Industry Development Act (SIDA).
“Ngayon, ayaw nilang ibigay because of underspending. So ngayong budget hearing, ire-request namin na magre-reform na sila, bigyan mo na sila ng mas malaki (Some officials don’t want to provide the funds because of underspending. So at the budget hearing we will press for reforms before we authorize larger amounts),” she told reporters after a hearing to look into the utilization of SIDA funds.
Ms. Villar chairs the Senate committee on agriculture and food.
SIDA, or Republic Act 10659, came into effect in 2015 to upgrade the industry’s competitiveness, and maximize the utilization of sugarcane resources, and boost the income of farmers and farm workers through improved productivity, product diversification, more jobs, and sugar mill efficiency.
The Sugar Regulatory Administration must use P300 million in SIDA funding for credit; P300 million for the Philippine International Trading Corp. (PITC); P100 million for scholarships; P300 million for block farming; and P1 billion for infrastructure development.
Underspending in 2016 led the Department of Budget and Management (DBM) to reduce the allocation to P1.5 billion in 2017, and further to P500 million in 2018 and 2019.
For 2020, there are proposals to further reduce the funding to P67 million.
During the hearing, SRA Administrator Hermenegildo R. Serafica said underspending mainly came from undisbursed loans from Land Bank of the Philippines (LANDBANK), and procurement money set aside for the PITC.
“Kasi nga daw binigay nila sa LANDBANK, hindi napautang. Binigay nila sa PITC para bilhin ang equipment, hindi nabili ng PITC… Parang nagkamali sila ng pinagbigyan na agency,” Ms. Villar said. (They gave the funds to LANDBANK, which did not lend. They funded PITC to buy equipment, but the PITC was not able to do so… it seems like they gave the money to the wrong agencies.)
Mr. Serafica noted that for 2016, P914 million went to infrastructure, P85 million to block farms, P48 million to socialized credit, and P90 million to scholarships.
The SRA also noted that the loan application process is difficult for farmers, leading them to tap usurers.
Ms. Villar recommended that LANDBANK simplify its loan requirements for small farmers, and that the SRA allocate the P300 million for PITC to the Department of Science and Technology (DoST) to develop equipment to help modernize the sugar industry. — Vincent Mariel P. Galang
ILOILO City has signed an agreement with the Public-Private Partnership (PPP) Center for assistance in three projects that it plans to offer as PPPs.
“We are very excited about this… we are interested first in entering into an arrangement with the private sector partner for the slaughterhouse, waste-to-energy facility, and (the central) market,” Mayor Jerry P. Treñas said during the Memorandum of Agreement (MoA) signing Wednesday.
The MoA provides a “framework for cooperation and coordination with the goal of developing a robust pipeline of PPP projects for Iloilo City.”
The entry of private investors, Mr. Treñas said, “will allow us to free a portion of the budget, which we will be able to use for social projects.”
PPP Center Executive Director Ferdinand A. Pecson said among the center’s responsibilities is ensuring that the partnerships entered into by the city are in the best interest of the public.
“Of course, kasama na rin yung (it also includes the) environment, even gender is going to be a consideration. It’s not just about the money, income or cost savings, it’s really a holistic approach,” Mr. Pecson said.
PPP Center Deputy Executive Director Mia G. Sebastian said the center has an in-house monitoring team that will help the city ensure that the private sector partner will properly implement the project.
“This is the most important phase of the project, to make sure that the value and benefits that we estimated during the development stage will indeed be delivered by the private sector at the implementation,” Ms. Sebastian said.
The PPP Center will assist the city government in developing feasibility studies and business cases right up to the bidding process. — Emme Rose Santiagudo
LONDON — Ask Saudi Arabia about its preferred oil price and the kingdom will say it has no target.
But a look at the pronouncements on the oil market by the world’s top oil exporter this year points to an oil price aspiration of around $70 per barrel LCOc1.
OPEC’s de facto leader probably would not mind oil prices rising to $75 per barrel and beyond.
But it has a problem. As soon as prices surge, U.S. President Donald Trump pops up, often on Twitter, to urge Saudi Arabia to lower prices.
OPEC has long understood the impact a few words said to reporters in a hotel lobby or over the phone can have on the price of oil, often called “jawboning” by analysts.
As a result, prices have been stuck between $60-$75 per barrel this year, despite financial market volatility and big oil supply outages, mainly driven by U.S. sanctions on Iran and Venezuela.
OPEC accounts for about a third of world supply and comments from unidentified officials with insight into production levels not previously disclosed or forward guidance on OPEC policy can move prices quite significantly.
The Organization of the Petroleum Exporting Countries (OPEC) and Saudi Arabia do not have an official price target, but sources say Riyadh wants oil to be at least $70.
Verbal interventions by OPEC and Saudi sources this year appear to support this.
Only in April with Brent near $75, according to comments reported by Reuters, has an OPEC source with insight into Saudi production made a comment likely to cool prices. At least five other comments with oil between $70 and $57 have been price supportive.
“Saudi Arabia is committed to do whatever it takes to keep the market balanced next year,” a Saudi official, who asked not to be identified by name, said on Aug. 8, a day after Brent had fallen below $56, its lowest since January.
The comment helped to drive oil prices 2% higher on that day.
OPEC has been mostly trimming production since the start of 2017 and traders say they expect Saudi Arabia to reduce output further amid slowing global oil demand.
“The oil cartel is well-trained in the practice of lifting sentiment and stabilizing energy markets in times of trouble,” said Stephen Brennock of oil broker PVM of the Saudi comments.
“This time was no different and leading from the front, as ever, was the group’s de facto leader Saudi Arabia,” Brennock said, referring to the Aug. 8 comments.
Meanwhile, Trump has been urging U.S. ally Saudi Arabia to lower prices and make up for a shortfall in exports from Iran. His comments on OPEC have sometimes had an even bigger impact on prices than OPEC’s own.
“Gasoline prices are coming down. I called up OPEC, I said you’ve got to bring them down,” Trump told reporters on April 26, a day after Brent reached $75.60, its highest this year.
Oil fell 3% on that day as Trump’s comments gave impetus to a sell-off.
With prices falling below $70 and $60, the frequency of OPEC source comments likely to support prices has increased. With prices well below $75, Trump has eased back in his public pressure on OPEC. — Reuters
DAVAO CITY — The Pilipino Banana Growers and Exporters Association, Inc. (PBGEA) is meeting next week with new Agriculture Secretary William D. Dar, to discuss the implementation of the Banana Industry Development Road Map.
“On Aug. 22, we will be laying down some of the requests to the secretary, and hope those priorities will be granted and funded,” PBGEA Executive Director Stephen A. Antig said during this week’s Habi at Kape forum.
Completed in 2018 and signed by former Agriculture Secretary Emmanuel F. Piñol in December, the industry plan aims to address the pressing concerns of banana farmers as well as identify new growth areas for the industry.
Mr. Antig said the road map was not finalized in time for inclusion in this year’s General Appropriations Act.
“Unfortunately, medyo nahuli na (it came a bit late) when it comes to budgeting (for 2019),” he said.
He added that the industry hopes that talks with Mr. Dar ensure funding for the plan under the 2020 national budget. The industry also hopes to explore the possibility of tapping any available funding from the Department of Agriculture (DA) this year.
“We are really hopeful that the roadmap will eventually take off from the ground, not so much for the big players but also for the small and medium size banana growers who are the ones who really need help,” he said.
PBGEA represents the industry’s large corporate growers.
One of the priority projects under the road map is the establishment of an institute for banana research.
“Medyo kulelat tayo (We are lagging behind), sad to say, the existing research facility of the government does not even have reagents,” he said, referring to substances used in chemical analysis.
The facility is expected to help address diseases as well as develop banana varieties other than Cavendish, the main export variety.
He said saba and cardava, both cooking bananas, are emerging export varieties.
Under the Philippine National Standard issued by the Bureau of Product Standards, Saba refers to the fruit known as Dippig in the northern part of the country, while Cardava, also referred to as Cadisnon, is bigger and “more popular” in the Visayas and Mindanao.
“A month ago, several buyers from all over the world were asking me for a supply of saban and cardaba. But there is a shortage… and one of the reasons identified is that there is no laboratory that produces tissue culture for saba and cardava,” Mr. Antig said.
Fresh bananas took up 7th place among the Philippines’ top export commodities in 2018 , with a value of $1.3 billion, according to the Philippine Statistics Authority.
Mr. Antig said so far this year bananas were the 5th-largest export as of the first half with an export value of $984 million.
“It’s really a huge jump, and you can see in these figures alone that China is really the market to watch out for,” he said.
The industry will hold an international banana congress in October. — Maya M. Padillo
COMMERCIAL fisheries and aquaculture output fell in the second quarter, the Philippine Statistics Authority (PSA) said.
In its Fisheries Situation report for April to June 2019, PSA noted that production from both sub-sectors declined 2.4% and 3% year-on-year, respectively.
Commercial fisheries accounted for 24.6% of the fisheries sector’s total output, while aquaculture made up 48.1% to total fisheries production in the second quarter.
Output of the municipal fisheries segment rose 4.3% year-on-year. The segment accounts for 27.2% of total output.
Production of three major species declined — skipjack (5.6%), seaweed (2.9%), and milkfish (1.4%). Those that increased were yellowfin tuna (33.4%); round scad (10.7%); tiger prawn, (4.6%); and tilapia (0.6%). — Vincent Mariel P. Galang
BRUSSELS — The European Commission on Tuesday imposed countervailing duties of 8% to 18% on imports of subsidized biodiesel from Indonesia, saying the move aimed to restore a level playing field for European Union producers.
“The new import duties are imposed on a provisional basis and the investigation will continue with a possibility to impose definitive measures by mid-December 2019,” the EU executive said in a statement.
Last week Indonesia’s trade minister said he would recommend to an inter-ministerial team a 20% to 25% tariff on EU dairy products in response to the EU targeting the country’s biodiesel, adding that he had asked dairy product importers to find sources of supply outside the 28-nation bloc.
The EU duties are another blow to Indonesian biodiesel producers after the bloc said in March that palm oil should be phased out of renewable transportation fuels due to palm plantations’ contribution to deforestation.
The European Commission, which coordinates trade policy for the EU, launched an anti-subsidy investigation in December 2018 following a complaint by the European Biodiesel Board.
It said its investigation showed that Indonesian biodiesel producers benefit from grants, tax benefits and access to raw materials below market prices.
The EU biodiesel market is worth an estimated 9 billion euros ($10 billion) a year, with imports from Indonesia worth about 400 million euros, the commission said.
Indonesia Biofuels Producers Association (APROBI) Chairman M.P. Tumanggor told Reuters that companies affected by the anti-subsidy duties will likely be forced to renegotiate their contracts with buyers in the EU and it may reduce the country’s 2019 biodiesel exports.
“We initially targeted 1.4 million tonnes in export this year to Europe. That will not be reached,” Tumanggor said. The exports would likely reach around 1 million tonnes, he said.
He said the association is in consultation with the government on a response to the EU duties.
Indonesian Trade Minister Enggartiasto Lukita told reporters the government will file an official objection within five days.
He also reiterated that the government is encouraging dairy product importers to start looking for new sources of supply outside the EU.
The ministry will start a program for Indonesian dairy importers to help them find replacements for dairy products they usually import from the EU with products from the United States or other countries, he said. — Reuters
