Indonesia Promotes Palm Oil in Pakistan Edible Oil Conference

The Indonesian Oil Palm Plantation Fund Management Agency (BPDPKS) collaborated with Indonesian palm oil businesses took part in the 4th Pakistan Edible Oil Conference (PEOC) and Price Outlook 2019 in Karachi, Pakistan, Saturday (19/1/2019), to promote Indonesian palm oil products. At the conference attended by global edible oil businesspeople, BPDPKS had a stand to provide information about Indonesian sustainable palm oil, included information about palm oil products and its derivatives. Indonesian delegation at the conference included Indonesian Ambassador to Pakistan Iwan Suyudhie Amri and representatives of Indonesian Palm Oil Association (GAPKI).

At the seminar session, GAPKI’s Vice Chairman Togar Sitanggang delivered a presentation concerning Indonesian palm oil products. Indonesian Ambassador and Indonesian Consul General in Karachi Totok Prianamto and GAPKI’s Chairman Joko Supriyono held a working lunch with Pakistan Vanaspati Manufacture Association (PVMA) and Pakistan Edible Oil Refiners Association (PEORA). The event was organized in order to strengthen palm oil trade relationship between Indonesia and Pakistan as well as to discuss establishment of Indonesa-Pakistan Palm Oil Joint Committee (IP JPOC), a communication forum of importers and exporters initiated by Indonesia in Karachi on March 2017.

Indonesian Ambassador said a communication channel was needed to establish effective communication links between Indonesia and Pakistan, especially to discuss about steps to take on vanaspati ghee which had unilaterally been banned for the last two years. He said the Indonesian government has unilaterally agreed to provide Pakistani products with deeper market access by reducing duties on 20 items to zero percent. It was deemed necessary to strengthen trade cooperation between the two countries. “This effort was greatly appreciated in Pakistan,” Iwan said as quoted by Sawit Indonesia. GAPKI and PVMA also agreed to have a further discussion on how to protect Indonesia’s market share in Pakistan such as promoting palm oil as healthy and efficient vegetable oil.

Pakistan appears as one of the main palm oil importers in the world. Since 2013, Indonesian palm oil has dominated Pakistan market, account for 80%, with Malaysia filled the rest.  For Indonesia, Pakistan is the fourth largest palm oil importer after India, European Union, and China. Pakistan imported palm oil products from Indonesia worth $2 billion, almost 10% of total import of US$22.9 billion in 2017. The domestic per capita consumption of palm oil in Pakistan amounts to about 14-15 kg per year at average, lower than per capita consumption in Indonesia which amounts to 21 kg per year or India to 23 kg per year. ***