Fajarasia.co – The government will expand exports of crude palm oil (CPO) in line with the reopening of the CPO export faucet some time ago.
One of the potential countries to increase Indonesia’s CPO exports is Pakistan.
“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 Minister of Industry (Menperin) Agus Gumiwang Kartasasmita, Wednesday (15/6/2022).
According to the Minister of Industry, the government is running a program to accelerate the distribution of CPO, refined bleached deodorized palm oil (RBDPO), and used cooking oil (UCO) through exports from 7 June to 31 July 2022.
“This is in the context of optimizing and stabilizing the production and trade chain of CPO, RBDPO, and UCO,” said Minister of Industry Agus Gumiwang.
The program, he explained, applies to all exporters with an export allocation set at 1 million tons. Each exporter participating in this program is given an allocation of at least 10 tons in multiples.
The Minister of Industry believes that the issuance of this program regulation can accelerate the import of CPO and its derivatives to Pakistan.
In a meeting with the Minister of Industry and Production of Pakistan, Agus Gumiwang also expressed his hopes for the continuation of the Indonesia-Pakistan Trade in Goods Agreement (IP-TIGA) negotiations to further enhance economic cooperation and accelerate the economic recovery of the two countries after the Covid-19 pandemic.
The Minister of Industry is optimistic that increasing cooperation in the industrial sector with Pakistan will boost national export performance.
Based on data from the Ministry of Industry, 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, the total trade between Indonesia and Pakistan will reach USD3.9 billion, with total exports of USD3.8 billion and imports from Pakistan of USD185 million. Both are dominated by the non-oil and gas sector.
Meanwhile, investment from Pakistani investors in Indonesia from 2018 to 2022 has poured a total of USD5.45 million for 155 projects. 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,” concluded the Minister of Industry.****
