Indonesia Attempting to Boost Palm Oil Export to China
Indonesia sees China as a good partner for palm oil trade as the country has a lot more room for growth.
JAKARTA-- Indonesia sees China as a good partner for palm oil trade as the country has a lot more room for growth. Recently President Joko Widodo asserted that Indonesia want to raise palm oil export to China.
On Friday (20/9/2019), President Joko Widodo and President Xi Jinping`s foreign relations adviser Song Tao appeared together at Bogor Presidential Palace, increasing hopes for a trade deal between the Indonesia and China.
Vice Foreign Minister AM Fachir said that Song Tao responded Indonesia’s demand positively. “President Joko Widodo and Song Tao agreed to strengthen ties in various sectors, including trade ties,” Fachir said.
According to President Director of the Indonesia Oil Palm Plantation Fund Management Agency (BPDPKS) Dono Boestami, it is the perfect moment to expand the market. Through Trade Expo Indonesia which will be held by October 2019, BPDPKS stands ready to conclude a trade mission in order to maintain palm oil export.
“We are attempting to reach a target. Currently, the top vegetable oils consumed in China as a whole are soybean oil, making up 40% while palm oil 20%. We expect use of palm oil increase to 30% replacing soybean oil,” Dono said to journalists in The Westin, Jakarta, Wednesday (18/9/2019).
Indonesia is expected to ship 6.6 million tons palm oil to China, making up 30%. “As we all know, palm oil is under pressure. We want Ministry of Foreign Affairs to help us to cope with the situation. It will help smallholder farmers who have been suffering from low price,” Dono added.
Apart from boosting export, domestic use of palm oil is also expected to increase. It can be achieved by creating domestic market including making it mandatory for biodiesel to have a bio-content of 20% which is currently implemented and 30% next year.
“Besides, we will launch a program that convince people to use healthy cooking oils. Indeed, we can take more advantages of palm oil. This is what we are striving,” Dono said.
Meanwhile, Director General of National Export Development at the Ministry of Trade Dody Edward said that China welcomes Indonesian products to enter its market. China has signaled to Indonesia to replace the US on supplying products commonly consumed in China. *** (Source: Republika)
