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.

Jakarta Post

Indonesia, India sign business-to-business agreement on palm oil

  • Anton Hermansyah
    Anton Hermansyah

    The Jakarta Post

Jakarta   /   Tue, July 17, 2018   /   05:49 am
Indonesia, India sign business-to-business agreement on palm oil Solidaridad Network Asia Limited managing director Shatadru Chattopadhayay (center) signs a memorandum of understanding as Coordinating Economic Minister Darmin Nasution (third left) and Solvent Extractors Association of India president Atul Chaturverdi (third right) look on at the Office of the Coordinating Economic Minister in Jakarta on July 16. (Courtesy of/Office of Coordinating Economic Minister)

Indonesian and Indian businesspeople signed on Monday a business-to-business agreement on palm oil to build communications between producers and consumers of the commodity.

The agreement, a memorandum of understanding (MoU) on sustainable palm oil production, was signed by the Indonesian Palm Oil Board (DMSI), the Solvent Extractors Association (SEA) of India and civil society organization Solidaridad Network Asia.

"India uses our palm oil products a lot so we need to build communications not only between the two governments but also between associations," Coordinating Economic Minister Darmin Nasution said during the MoU signing at the Office of the Coordinating Economic Minister in Jakarta.

He said a network of associations could help the government campaign about the use of palm oil in India and address misconceptions about the commodity.

"Because of the lower price, consumers in India consider palm oil a low-quality product, which is not true. Because palm oil yield is three to four times higher than other [vegetable] oils, we can provide a lower price," Darmin said.

SEA president Atul Chaturverdi, who promised to campaign for the sustainable production of Indonesian palm oil, said the MoU would allow for better cooperation between Indian and Indonesian palm oil stakeholders.

"This MoU can be a way forward to create a sustainable model for Indonesia, which is good for smallholders as well as consumers of palm oil in India," he said. (bbn)