Indonesia Eyes Africa to Sell Palm Oil

28/07/2017 14:34:08

Source: Seputar Indonesia Daily, 28th July 2017

JAKARTA - The Ministry of Trade of the Republic of Indonesia is optimistic that the Indonesian export will soar in the second semester / 2017. 

The bilateral agreements have increased non-oil export market access to non-traditional countries. Head of Trade Policy Analysis and Development Agency of the Ministry of Trade of the Republic of Indonesia, Kasan Muhri, said Indonesia’s non-oil export in the first half of 2017 (January – June) reached USD 72.36 billion, a 13.7% increase compared to 2016. The government forecasts the non-oil export to grow by 5.6% in 2017.

Kasan added that economic improvement of the non-oil destination countries such as China, Japan, Singapore, Taiwan, USA, and Vietnam brings positive impact in Indonesian export. “We expect a positive grow in the second semester,” he said in Jakarta, Wednesday (26/7). Kasan explained in the last two years the non-oil export have been contributed for 90% of the total exports. In 1982, the contribution was about 17%.

As the non-oil product, palm oil and its derivatives contribute USD 18-20 billions per year. Unfortunately, Indonesia has been enraged by European Parliament’s resolution on palm oil that accused the palm oil industry in Indonesia has responsible in deforestation and local human rights violation issues. Many experts claimed the resolution has been issued to protect European palm oil industry.

“Although Europe is not the main export destination, palm oil and its derivatives threat their industry,” Kasan said. In the first semester of 2017, Indonesia exported 2.2 million tons of Crude Palm Oil (CPO) to the European Union, a 37% increase compared to 2016. The transaction has significantly increased from USD 1 billion to USD1.7 billions, a 71% increase.

“In the first quarter of 2017, the European Union’s economy grew 2.1%. On the other hand, the import of CPO reached 71% and the volume grew 37%. Therefore, they build a barrier to protect local commodity,” he said. Kasan added, the Ministry of Trade of the Republic of Indonesia continues to expand as well as to diversify the opportunity of Indonesia palm oil export market.

 

Indonesia plans to expand South Africa, Nigeria, Kenya, Mozambique, and Tunisia. Some of Indonesia trading partners in palm oil are the United States of America, China, Pakistan, and Bangladesh.