JAKARTA (TheInsiderStories) – Indonesia and Malaysia work together to increased palm oil trade between the two countries by signed a memorandum of understanding on the domestic palm sludge oil by the neighboring country with totaling 2,000 tones per month in the next two years. The deal inked by local firm, PT Alam Duta Mandiri and its parnert from Malaysia, Dendro Integrasi Bhd.
“Together we will continue carry out palm oil diplomacy, promote palm oil in the global market, and fight back lopsided issues surrounding palm oil. (We) hoped that in the future other Indonesian producers able to supply demand for palm sludge oil to Malaysia as well as palm oil products as well other derivatives around the world,” said the director general at trade ministry, Kasan, in an official statement released on Tuesday (02/16).
In 2020, Indonesian exports to Malaysia in the form of crude palm oil (CPO) and derivative products recorded US$945.03 million, up 15.11 percent compared to the previous year amounting to $820.97 million. In the Southeast Asian Region, the country is the major supplier to Malaysia with a market share of 85.14 percent, followed by Thailand 8.56 percent, Cambodia 1.78 percent, the Philippines 1.48 percent, and Singapore 0.61 percent.
In the same year, Indonesian palm oil sludge to the world amounted to $544.47 million or up 6.60 percent over the previous year. Malaysia is Indonesian main export destination for these products with an export value of $185.37 million or 34.05 percent market share, followed by Italy with $101.12 million (18.57 percent), China $76.93 million (14.13 percent), the Netherlands $41.61 million (7.64 percent), and the United States worth of $27.20 million (5 percent).
Kasan explained, that Indonesia’ palm oil production in 2020 was still above average annual production, even though various industrial sectors have been hit hard by the pandemic. Grounded data from the Oil Palm Plantation Fund Management Agency, in 2020 the domestic palm oil production reached 51.58 million tones (MT) of CPO.
The realization of export volume is estimating will reach 34 MT of CPO or decreased by 9 percent compared to 2019. However, the export value rose by 13.6 percent to $22.97 billion due to the increase prices of the products in 2020.
Indonesia and Malaysia are the producers of palm oil in the world. The two countries also founded Organization of Palm Oil Producing Countries which aims to encourage, develop and enhance cooperation palm oil industry among member countries. Indonesia and Malaysia will continue strengthen good relations between the two countries through strong communication at all levels.
In 2020, the total trade between Indonesia and Malaysia recorded $15.06 billion. Indonesia’ experienced a surplus of $1.20 billion, of which the export value was recorded at $8.13 billion and the import value was recorded at $6.93 billion.
Written by Editorial Staff, Email: email@example.com