Palmoilmagazine.com, JAKARTA – Indonesia’s non-oil and gas export performance has received significant support from the highly productive palm oil industry. A testament to this is the remarkable achievement in 2022, where the country’s non-oil and gas exports reached a substantial value of US$275.96 billion. Out of this figure, the export of crude palm oil (CPO) and its derivatives accounted for 15 percent, equivalent to US$41.32 billion.
The Ministry of Trade has observed a consistent growth in CPO and its derivative product exports over the past five years, with a notable increase of 20 percent. In 2022 alone, Indonesia’s CPO and its derivative product exports amounted to US$41.32 billion, with a corresponding export volume surge of 35.52 million tons.
“Though export trend escalated, Indonesia is facing challenges and barriers in the exporter countries,” Director of Export Agricultural and Forestry Product, Ministry of Trade, Farid Amir said when delivering his speech at “Promosi Sawit Sehat” in Jakarta, Wednesday ((14/6/2023)).
He also explained palm oil in Indonesia faces challenges to accelerate its transition from 3 Pillars of Sustainability (economy, society, environment) to be circular economy. Some issues in palm oil are about Genetically Modified Organism (GMO) food in vegetable oils, negative campaigns by many non-government organizations, countries, or other vegetable oil producers, environment, social issues about palm oil plantations and health issues for food.
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“Besides, Indonesia also faces trade barriers in European Union by the publication of European Union Deforestation Regulation (EUDR),” Farid said.
Meanwhile Chairman of Foreign Relation Division Indonesian Palm Oil Association (IPOA), Fadhil Hasan said, EUDR is the regulation that significantly substitutes our palm oil export trade in European. Prior the barrier, such as, RED II was the barrier for our biofuel.
“But EUDR would postpone not only energy but also food sectors. EUDR would massively deliver impacts to food, energy, and industry sectors,” he said.
