Minister Of Agriculture Amran Calls Tariff 19 Percent A Golden Opportunity For Indonesian CPO Exports To US

JAKARTA - Minister of Agriculture (Mentan) Andi Amran Sulaiman said that the trade agreement between Indonesia and the United States (US) actually opened up new opportunities for the national agricultural sector.

Especially for crude palm oil (CPO) products.

Currently, the import rate for Indonesian products is at 19 percent, lower than Malaysia, which is subject to a tariff of 24 percent.

"However, we are grateful, because the tariff from 34 (percent) becomes 19 (percent). If I'm not mistaken, what is Malaysia? 24 percent, yes? What does that mean? There is a gap there for agriculture. There is a gap there, namely CPO," he told reporters in Jakarta, Thursday, July 17.

"Our only competitor is Malaysia. Yes, right? Yes, that's right. What does that mean? We can add too, this is a golden opportunity for agriculture," continued Amran.

Regarding the stagnation of national CPO production which is at around 50 million tons in the last five years, Amran explained that the stagnation was caused by part of the supply being diverted to biofuels.

However, he ensured that production would increase through the oil palm replanting program.

"Our CPO is the number one in the world. It is stagnant because some of it has been transferred to biofuels. But we have started replanting now. Of course production will increase," he said.

When asked about the target for the replanting land area until 2029, Amran had not yet given an exact figure. "Just pray. We've started now," he said briefly.

Although Amran was reluctant to mention specific production volume projections, the Minister of Agriculture was confident that Indonesia would remain superior in the global CPO market.

"Our CPO will definitely compete. Winning when compared to other countries," he concluded.

Sebelumnya, Presiden Amerika Serikat, Donald Trump menyatakan, tarif impor senilai 19 persen akan diberlakukan terhadap produk-produk Indonesia yang masuk ke AS.

Sementara ekspor dari Amerika Serikat ke Indonesia tidak akan dikenakan pajak. Keputusan ini berdasarkan hasil negosiasi langsung yang dilakukannya dengan Presiden RI Prabowo Subianto.

Previously, the President of the United States, Donald Trump, stated that the import rate of 19 percent would be applied to Indonesian products entering the US.

Meanwhile, exports from the United States to Indonesia will not be taxed. This decision is based on the results of direct negotiations he made with the President of the Republic of Indonesia Prabowo Subianto.