Govt Wants India to Give Indonesian Palm Oil a Priority
The government deems it necessary to communicate with India to maintain Indonesian palm oil export to the country.
The government deems it necessary to communicate with India to maintain Indonesian palm oil export to the country. India is expected to give Indonesian palm oil a priority when the country needs more vegetable oil. Deputy for Food and Agriculture at Coordinating Ministry of Economic Affairs Musdhalifah Machmud said that government needs to keep in touch with India, given the fact that international trade always faces barriers, including in trade relationship between Indonesia and India. “We are expecting an increase in our palm oil export to India. In this case, we need to maintain good communication to make sure that India puts Indonesian product on priority,” Musdhalifah said in Jakarta, (25/12/2018) as reported by Investor Daily. Earlier, Coordinating Ministry of Economic Affairs organized a discussion forum between Indonesian and Indian companies in Jakarta, (19/12/2018). It was held to discuss implementation action on an cooperation agreement between the Solvent Extractors Association of India (SEA), Indonesian Palm Oil Board (DMSI), and Solidaridad Network Asia Limited (SNAL). 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. As of October 2018, palm oil shipment from Indonesia reached 690.16 thousand tons. India is expected to lower import tariff on palm oil products from Indonesia and Malaysia early next year. Under India-Malaysia Comprehensive Economic Cooperation Agreement (IM CECA), India has imposed highest import duty on CPO at 44% and as of 1 January 2019 it will be revised downward to maximum 40%. India will treat Indonesia all the same under ASEAN-India Free Trade Area (AIFTA) agreement so that import duty for Indonesian CPO will also be revised downward to 40%. **