Minister of Trade Promoted Palm Oil in USA

Minister of Trade Promoted Palm Oil in USA

InfoSAWIT, WASHINGTON DC – Minister of Trade, Enggartiasto Lukita emphasized that the principles of trade in Indonesia are done by collaborating and making partnership. These are important to increase the trade and investment sustainably. He told that when opening the  ‘Indonesia Palm Oil Forum’ in the Embassy of Indonesia in Washington DC, United States of America (USA), Wednesday (16/1/2019).

The forum was part of series to strengthen and increase the trade and investment between both countries. It was in cooperation with Palm oil Plantation Fund Management Agency (PFMA), Indonesian Palm Oil Associaiton (IPOA), Gabungan Industri Minyak Nabati Indonesia (GIMNI), the Embassy of Indonesia, and supported by Ministry of Trade.

“When the economy and the global trade were unstable, collaboratiion and partnership are important to increase the investment and trade sustainably. Crude palm oil (CPO) is one special focus in our work visit to USA. By ‘Indonesia Palm Oil Forum’, it is hoped that there would be dialogue, and openness among the stakeholders to strengthen the partnership, namely CPO,” he said in front of more than 75 participants, in the offiial statement to InfoSAWIT.

In his speech, he also told that the CPO and its derivative products play important roles to the economy of Indonesia. “CPO contributes to conquer the poverty, develops the villagers, and supports the economy nationally,” he said

Looking back to the old days, developing CPO to promote the villages’ development and poverty alleviation in Indonesia started since the end of 1990s. It was far from proposing Sustainable Development Goals in 2015. In 2001 – 2010 the CPO from Indonesia had helped 10 million villagers from the poverty and at least, 1,3 million villagers were not poor anymore. He also mentioned, palm oil cultivation could make good income for the smallholders. This creates middle class villagers for some generations. This sector also provides employment to more than 5,5 million men and as the living source for 21 million men.

Indonesia depends on this industry. This sector also develops the school, hospital, culture, religion, sport centers in palm oil plantation regions.

Within its production reaching 35,36 million metric tons in 2017, CPO from Indonesia became the giant industry that could make the export income reaching US$ 22,8 billion in the same year. It is right to say that CPO is the most crusial industry for the economy in Indonesia, like Boeing for USA, or Airbus for Europan Union.


Environmental Cultivation

Considering the palm oil expansion would be a threat for the environment, the government of Indonesia has launched and run Indonesian Sustainable Palm Oil (ISPO) in 2011 and it is improved to be more effective.

The government also adopted the peat exploitation moratorium in 2011 and expanded it to cover every kind of new planting in the forest for  palm oil plantation.

In 2015, President’s Instruction was published. To increase the primer and peat cultivation, in 2016, Peat Restoration Board was established in 2016. On September 19 2018, the government published the President’s Instruction No. 8 about the Postponement and Evaluation of Palm oil Plantation License and Increasing of its Production.

It is to implement other ways so that new planting in the moratorium would be more effective and increase the productivity. “The high production of CPO could conserve the oil stock globally. Indonesia tries its best to increase the CPO production and also solves the social and environmental challenges so that its production would not damage the environment,” Enggar said.

In the health issue, many researches showed that consuming saturated fatty accid from palm oil would not increase cardiovacular disease. “I want to emphasized, it is important to have fair trade in palm oil and erase the discriminative trade that could be a loss for palm oil because of commercial and restrictive sinterests, and wrong input policy,” he said.

Palm oil forum was also running with discussion and dialogue among the stakeholders. The native speakers were Director of PFMA, Dono Bustami; IPOA, Kanya Lakhsmi Sidarta; Chairman of Asosiasi Produsen Biofuel Indonesia, Paulus Tjakrawan; Gabungan Industri Minyak Nabati Indonesia, Bernard Alexander Riedo; Wilmar Oleo North America LLC, John Cummings. (T2)


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