JAKARTA - Indonesia is eyeing the expansion of the export market for crude palm oil (CPO) and palm cooking oil to Pakistan, as a strategic step taken to enhance cooperation between the two countries.
“The government has decided to reopen the export of cooking oil, after seeing the condition of the supply being fulfilled in the domestic market and the current decline in the price of bulk cooking oil. Therefore, Pakistan can become a potential market", said the Indonesian Minister of Industry, Agus Gumiwang Kartasasmita, quoted from Antara, Tuesday, June 14.
This was conveyed by Agus Gumiwang Kartasasmita at a meeting with Pakistan's Minister of Industry and Production Syed Murtaza Mahmud in Jakarta.
Agus explained that the government was running a program to accelerate the distribution of CPO, refined bleached deodorized palm oil (RBDPO), and used cooking oil (UCO) through exports from June 7 to July 31, 2022.
"This is in the context of optimizing and stabilizing the production and trade chain of CPO, RBDPO, and UCO", he said.
The program applies to all exporters, with an export allocation set at 1 million tons, and each exporter participating in the program is allocated at least 10 tons in multiples.
"I believe the issuance of this related regulation can accelerate the import of CPO and its derivatives to Pakistan", he added.
Agus hopes that this bilateral meeting can also expand the cooperative relationship between the two countries in the economic field, namely by continuing the Indonesia-Pakistan Trade in Goods Agreement (IP-TIGA) negotiations.
This is to accelerate the economic recovery of the two countries after the COVID-19 pandemic.
"Indonesia has great potential, with the number of MSMEs being 65 million units or 99% dominating the total business units in Indonesia. MSMEs contribute up to 60 percent of the national GDP", he said.
In addition, MSMEs in Indonesia absorb more than 119.6 million workers or contribute about 96.92 percent of the total workforce in Indonesia.
Agus is optimistic that increasing cooperation in the industrial sector with Pakistan will boost national export performance.
The total trade between the two countries recorded a positive growth of 6.65 percent during 2017-2021 and recorded a positive growth of 41.77 percent during 2021-2022.
In 2021, total bilateral trade will reach US$3.9 billion with total exports of US$3.8 billion and imports from Pakistan of US$185 million, both of which are dominated by the non-oil and gas sector.
In the last five years, Indonesia has continued to experience positive trade values. In 2021, the trade value will be recorded at US$3.6 billion.
Meanwhile, investment from Pakistani investors in Indonesia from 2018 to 2022 has poured a total of US$5.45 million for 155 projects.
SEE ALSO:
The sectors that have realized these investments include the food, textile, wood, and chemical and pharmaceutical industries.
"Palm oil and crude palm oil are products with the largest export potential from Indonesia to Pakistan", said Agus.
Other commodities that are also the mainstay of Indonesia's exports to Pakistan include viscose rayon staple fiber, cars, and other motorized vehicles, gearboxes, and parts thereof, as well as uncoated paper and paperboard.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
