Palm mainstay, value and volume of exports rose, But be careful with the obstacle

Palm mainstay, value and volume of exports rose, But be careful with the obstacle

Reporter : Miechell
Translated by : adhe

Beritahati.com, Jakarta - Indonesian Palm Oil Entrepreneurs Association (GAPKI) noted that almost all of the main export destination countries of Indonesian palm oil have increased demand. Starting from the export destination countries of Indonesian palm oil such as India, China, Pakistan, Bangladesh, USA, EU, to Africa, all have increased.


Demand for Indonesian palm oil from India rose 32 percent, China up 16 percent, African countries up 50 percent, EU up 15 percent, Pakistan up 7 percent, the United States up 9 percent, Bangladesh up 36 percent, and the East The middle also experienced an increase in demand for palm oil by 7 percent.


However, Secretary General of GAPKI Togar Sitanggang believes that Indonesia's palm oil industry is still experiencing a number of trade barriers from several countries.


Some of these obstacles according to GAPKI are:


1) The United States imposes an anti-dumping policy on Indonesia's biodiesel products.


2) The EU Parliament Resolution imposes a ban on palm-based biodiesel. Their reasons, this product is still considered to cause problems such as deforestation, corruption, child labor, to Human Rights.


3) India raises palm oil import taxes twice.


4) The Australian Senate re-proposed the Competition and Consumer Amendment (Truth in Labeling-Palm Oil) Bill.


Over the various obstacles, Togar rate, it is very ironic given the performance of exports are being strengthened significantly.


This strengthening of export performance shows that palm oil is still a vital plant oil demand and will continue to be needed in line with world population growth.


"The obstacles are part of the increasingly tight competition of the vegetable oil trade, so the government must be careful in looking at the problems and opportunities," said Togar.


Data from Plantation Fund Management Agency (BPDP)


Based on data from Plantation Fund Management Agency (BPDP) of Palm Oil, the total export volume of palm products in 2014 reached 21.77 million tons.


In 2015, it increases again at 26.39 million tons. Until 2016, touching the number 28.26 million tons.


Thus, in the first quarter of 2017, palm oil exports reached 6.34 million tons.


Given the huge potential of palm oil in Indonesia, many countries in other parts of the world feel jealous. Why is that? Because they can only produce soybean or soybean oil and rapeseed which is managed to make vegetable oil.


"Many developing countries are jealous because oil palm grows only in tropical climates, can not grow in America and Europe," said BPDP Sawit President Director, Dono Boestami in Pangkal Pinang.


Judging from the comparison of processed products per hectare, soybean and rapeseed lost far away from oil palm.


In 1 hectare, oil palm plantation can produce 3.85 tons of palm oil. While soybean only produce 0.45 tons of soybean oil and rapeseed 0.69 tons per hectare.


Meanwhile, BPDP Supervisory Board Chairman Sawit Rusman Heriawan believes, to meet the need for vegetable oil, many countries must import palm oil from Indonesia.


"The high demand for palm oil follows the growth of the world population," said Rusman.


Palm Industry So Mainstay


Coordinating Minister for Economic Affairs of the Republic of Indonesia, Darmin Nasution said, palm is a very important commodity for Indonesia.


Sawit also ranked at the top of the leading commodities that became the mainstay as well as the pride of the Indonesian nation.


In addition, palm oil derivatives products also contribute to the export of 75 percent of the non-oil and gas sector (oil and gas).


"That way, it can be said, palm oil becomes one of the biggest contributors to the country's income," said Darmin Nasution.

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