Indonesia-India Seek Solution on Palm Oil Trade Issues

PALM oil stakeholder from Indonesia and India gathered in Jakarta, Wednesday (19/12/2018), to discuss implementation action of MoU between the Solvent Extractors Association of India (SEA), Indonesian Palm Oil Board (DMSI), and Solidaridad Network Asia Limited (SNAL). “Today we discussing actions we would take on the MoU,” Deputy Minister for Food and Agriculture, Coordinating Ministry of Economic Affairs, Musdhalifah Machmud said. Generally, the meeting was to discuss global challenges in palm oil trade, particularly between partners in Asia. “This is a business to business meeting. The government serves as facilitator and observer,” Musdhalifah added. She explained that The MoU, signed in Jakarta on 16 July 2018, recognizes sustainability framework of palm oil production and trade between Indonesia and India. It was for the first time, recognizes the Indonesian Sustainable Palm Oil (ISPO) and the Indian Palm Oil Sustainability (IPOS) Framework as legitimate sustainability frameworks for palm oil production and trade between Indonesia and India. Chairman of DMSI Derom Bangun asserted that India is the largest Indonesian palm oil consumer. Communication need to be strengthen both in inter-governmental and inter-business stage. “Both sides are discussing issues may arise and seek the solution. We have to maintain this relationship,” Derom Bangun said. Traditionally, Indonesia and India have good mutual economic cooperation, including in palm oil trade. In 2017, total trade between the two countries reached US$18.1 billion and 34,8% or US$4.9 billion of it was palm oil export from Indonesia to India. ***