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 expects palm oil concession from Putin
Change Size
Harvest time: A worker gathers oil palm fruit bunches at a plantation in Lampung. Indonesia and Malaysia, the biggest and second-biggest palm oil producers respectively, have threatened to challenge the European Union via the World Trade Organization if the EU continues to phase out palm oil from transportation fuel. (The Jakarta Post/R. Berto Wedhatama)
I
ndonesia is expecting Russian President Vladimir Putin to continue providing favorable treatment when it comes to palm oil exports by dropping a plan to impose a higher import tariff for the key commodity.
The Russian parliament, Duma, approved a bill to impose a 20 percent tariff – up from 10 percent – on palm oil imports. The bill was sent to Russia’s Federation Council for final approval.
However, Putin, who is scheduled to visit Jakarta early next year, can still veto the bill.
President Joko “Jokowi” Widodo sat with Putin last year on the sidelines of the ASEAN summit in Singapore and conveyed his wishes to double trade between the two countries to US$5 billion.
The two leaders also talked about palm oil issues, and Putin promised to follow up on their discussion.
Palm oil is one of Indonesia’s biggest exports to Russia along with rubber, cocoa and electronic machinery. Meanwhile, Russia’s exports include wheat and phosphate. Tourist activities are also increasing between the two countries.
Indonesia is one of the biggest palm oil exporters in the world, together with Malaysia. The country exported about 32 million tons of the commodity last year, Indonesian Oil Palm Association (GAPKI) data show.
