China Adds CPO Imports, Coordinating Minister Luhut Optimistic Can Boost FFB Prices

Illustration (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the commitment to increase imports of crude palm oil or crude palm oil (CPO) from Indonesia by 1 million tons could raise the price of Fresh Fruit Bunches (FFB) at the Indonesian farmer level.

"By becoming the world's main supplier of CPO, it will certainly help improve the Indonesian economy, as well as improve the welfare of oil palm farmers in Indonesia, whose number reaches 16 million," he said in an official statement, Wednesday, July 27.

China's commitment is the result of a bilateral meeting between President Joko Widodo and PRC Prime Minister Li Keqiang in Beijing, Tuesday, July 26.

"Thank you for the support of President Xi Jinping and Premier Li Keqiang for their commitment to import palm oil from Indonesia. We hope that China can continue and increase trade in palm oil from Indonesia," he said.

Luhut said palm oil is the most productive oil crop, and also an important commodity for world trade.

Therefore, Indonesia is committed to acting as a major supplier for this important food ingredient.

In addition to discussing the CPO trade, the meeting of delegations from the two countries also discussed cooperation in various fields such as investment, infrastructure, finance, funding, and maritime affairs.

The development of the Green Industrial Park in North Kalimantan was also one of the discussions at the meeting.

Also discussed at the meeting was the topic of the completion of the high-speed train which is a joint commitment between Indonesia and China.

The two countries also expressed their commitment to complete the Jakarta-Bandung high-speed train according to schedule and will be tested at the end of 2022.

"President Jokowi conveyed that the value of trade between Indonesia and China continues to increase and has already exceeded 100 billion US dollars," Luhut said.

"So the opportunity to increase the number of trade is very large. Therefore, we as assistants to the president will continue to look for other potential economic sources that can improve the Indonesian economy," he concluded.