China Buys 1 Million Tons of CPO, Minister of Trade Zulhas Ensures Not to Disturb Domestic Needs
JAKARTA - The Minister of Trade, Zulkifli Hasan, ensured that the purchase of crude palm oil (CPO) and its derivative products by China will not interfere with the fulfillment of domestic supplies.
For your information, Indonesia and China have signed a trade commitment between the two countries. Through the signing of the MoU was signed today by Indonesian palm oil entrepreneurs. With the signing of this MoU, China is ready to buy 1 million tons of CPO from Indonesia.
"It will not disturb the domestic stock of cooking oil raw materials so that the demand for cooking oil will still be fulfilled. Domestic regulations will still be in place", he said, in Jakarta, Friday, November 11.
Zulhas as Zulkifli Hasan is familiarly known, said that the Domestic Market Obligation (DMO) and Domestic Price Obligation (DPO) schemes for cooking oil producers and the CPO industry are still being maintained.
"This is to ensure the supply of raw material for cooking oil remains stable", he said.
In January-August 2022, Indonesia's exports of palm oil products and their derivatives to China reached US$3.6 billion. For Indonesia, China is one of the main export destinations for Indonesian palm oil products.
VOIR éGALEMENT:
Based on data from the Central Statistics Agency processed by the Ministry of Trade, the export volume of palm oil products and their derivatives from Indonesia to China in 2021 will reach 6.6 million tons. This value increased by 14.17 percent from the previous year.
In 2021, the export value of Indonesian palm oil products to China will reach 6.06 billion US dollars, a jump of 82.87 percent from the previous year. This increase was due to the increase in world CPO commodity prices in the last year.
The total trade between Indonesia and China in 2021 will reach 109.99 billion US dollars, or a 54 percent growth compared to 2020. Indonesia's main export commodities to China are coal, steel, palm oil, wood pulp, and chemical products.