Trade Minister Zulhas Immediately Follow Up Exports Of 1 Million Tons Of CPO To China

Minister of Trade Zulkifli Hasan. (Photo: ANTARA)

JAKARTA - Trade Minister Zulkifli Hasan said he would immediately follow up on China's request to increase exports by 1 million tons of crude palm oil (CPO) from Indonesia.

China's commitment to increase CPO imports from Indonesia is the result of a bilateral meeting between President Joko Widodo and Prime Minister (Premier) Li Keqiang in Beijing, People's Republic of China (PRC).

"The Ministry of Trade is ready and will immediately follow up on the results of President Joko Widodo's bilateral meeting with Chinese Premier Li Keqiang to increase CPO exports by 1 million tons to China," said Zulhas, in an official statement received by VOI, Thursday, July 28.

Currently, Zulhas as Zulkifli Hasan is familiarly known, said that the Ministry of Trade is trying to accelerate the export of CPO and a number of its derivative products. The goal is to empty the full CPO holding tanks so that the CPO industry can absorb fresh fruit bunches (FFB) from oil palm farmers. Through the export acceleration, the FFB price is expected to be above IDR 2,000 per kg.

"This (China) commitment is expected to facilitate Indonesia's CPO exports and improve the price of FFB at the farmer level to above IDR 2,000 per kg," he said.

For your information, so far China and Indonesia have succeeded in building trade partnerships with mutually beneficial cooperation.

The trade value between the two countries currently reaches 100 billion US dollars.

President Joko Widodo wants the value of trade between Indonesia and China to continue to increase.

Based on data from the Central Statistics Agency (BPS), the export volume of CPO and its derivatives (HS 15) in June 2022 was 2.17 million tons, a rapid increase from May 2022 which was 0.51 million tons.

The export value of CPO and its derivatives in June 2022 also rose 300.66 percent to US$3.38 billion compared to May 2022.

In June 2022, Indonesia exported the most CPO and its derivatives to China worth US$591.57 million, Pakistan US$454.47 million, India US$273.97 million, and Bangladesh US$163.75 million.

It Won't Disturb Oil Raw Material Stock

Zulhas emphasized that the purchase of CPO from China would not interfere with domestic stocks of cooking oil raw materials.

So the need for cooking oil will not be disturbed. With abundant stock, the price of cooking oil will also remain stable according to the HET of IDR 14,000 per liter.

"I guarantee that the price of cooking oil will not increase and will remain stable. Currently, the stock of raw material for cooking oil is very abundant. Domestic CPO tanks are still full," he said.

Previously, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said China's commitment to increase CPO imports 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.

Luhut hopes that China can continue and increase trade in palm oil from Indonesia.

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

Therefore, Luhut continued, Indonesia is committed to acting as the main supplier for this important food ingredient.