TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Indonesia-China ink $2.6B CPO, fishery trade deals
China have signed a US$2.6 billion worth of commitment to purchase crude palm oil (CPO) and its derivative products from Indonesia, allowing the archipelagic country to secure a trade boost from its number-one trading partner amid global recession.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Workers transport oil palm fruit onto a truck from PT Wanasawit Subur Lestari's plantation in Pangkalan Bun, Central Kalimantan, on Saturday. The Indonesian Palm Oil Council (DMSI) estimates that this year's production of crude palm oil (CPO) and crude palm kernel oil (CPKO) will miss the initial projection of 30.1 million tonnes of CPO and 3.1 million tonnes of CPO. The amount of CPKO decreased from the initial target of 31.5 million tonnes of CPO and 3.3 million tonnes of CPKO due to the El Nino phenomenon, which caused a prolonged dry season. (JP/Dhoni Setiawan)
C
hina has signed a US$2.6 billion worth of commitment to purchase crude palm oil (CPO) and its derivative products from Indonesia, allowing the archipelagic country to secure a trade boost from its number-one trading partner amid global recession.
The sum covers a total of 2.5 million tonnes of CPO and some derivative products, involving deals between nine Indonesian firms and 13 buyers.
“The signing today is a follow-up on a bilateral meeting between the two countries at the end of July, which underlines China’s commitment to purchase one million tonnes of Indonesian CPO and some fishery products,” Indonesian Trade Minister Zulkifli Hasan said in a statement on Friday.
Read also: Mandatory B40 risky after CPO policy missteps
The commitment was the first of its kind in months after Indonesia fell into palm oil crisis despite being world’s top producer, which prompted the government to ban exports to secure CPO supply for domestic markets and bring down cooking oil price.
Months after lifting the ban, the country found itself facing another problem: having difficulties selling it abroad, resulting in oversupply and plummeting price in local markets, which then was followed by efforts to flush the goods to the international market.
Four local associations Indonesian Palm Oil Association (Gapki), the Indonesian Vegetable Oil Refiners Association (GIMNI), Association of Indonesian Edible Oil Industries (AIMMI) and Indonesian Oleochemical Manufacturers Association (Apolin) were involved in the signing with China Chamber of Commerce for Import and Export for Foodstuffs, Native Produce & Animal By-Products (CFNA).
