Egypt Could be the Entrace for Indonesian Palm Oil to African Market
Indonesia’s balance of trade with Egypt that showed a positive trend was also contributed by oil palm products.
JAKARTA--Indonesia’s balance of trade with Egypt that showed a positive trend was also contributed by oil palm products. Dominating palm oil market in Egypt could mean an entrance to African market.
“Trade value with Egypt that always increase should be our momentum to penetrate the African market,” Indonesian Ambassador to Egypt, Helmy Fauzi said in his statement, (26/6/2018).
Apart from having geographical and population advantages, Egypt has also signed Free Trade Agreement (FTA) with some African countries. On the other hand, Indonesia faces many trade barriers to push palm oil export to European market. That’s why Egypt could be an alternative for Indonesian palm oil.
Indonesian Embassy in Cairo recorded that Indonesia`s palm oil ranked the first market share of about 89,97% in 2017 followed by Malaysia in the second with market domination of 8,99% and South Korea with a market share of 0,85%.
Data from the Indonesian Central Bureau of Statistics (BPS) noted that the value of Indonesian CPO exports to Egypt for 2017 was the highest with US$1,505 billions increased by 2,97% compared to 2016 which only reached up to US$ 1,462 billion.
Indonesia-Egypt trade for 2017 reached US$1,253 billions compared to 2016 totalled US$1,110 billions. Indonesia’s main exports to Egypt include palm oil, tire products, thread, coffee, and automotive spare parts. Indonesian investment in Egypt in 2016 totalled roughly US$ 50 million.
Meanwhile Indonesia’s imports from Egypt include chemicals and fertilisers, readymade clothes, weaving and textiles, fruits, and dates. Indonesia’s investment in Egypt reached US$50 millions, while Egypt investment in Indonesia in the last seven years reach US$ 5 millions. ***
