Palm oil Markets of Indonesia in European Union Reached 47%

Palm oil Markets of Indonesia in European Union Reached 47%

InfoSAWIT, JAKARTA - Based on European Union Delegation, the last five year imports were relatively stable, about 3,5 million tons or about € 2,2 billion per year. The palm oil trade of Indonesia to European Union remains the biggest one, reaching 47%.

The Charge d’affaires of European Union and Brunei Darrusalam Delegation, Charles Michel-Geurts said that European Union basically really encourages the sustainable palm oil development because it is the important key to the poverty alleviation. “In addition, 17 million men depend on palm oil,” he recently said in Jakarta.

Unfortunately, he continued, the raise of palm oil biodiesel policy in European Union was negatively thought by the palm oil producers and raised the assumption that European Union postpones the biodiesel production from Indonesia to be sold in the continent.

He also mentioned that his side has no idea to do it. European Union is the third biggest market to trade palm oil from Indonesia after India and China. ”There is no trade barrier or discriminatory laws to palm oil,” he said in the early of September in Jakarta.

In the palm oil trade, European Union has run 0 to 10,9% tariff policy if compared to India and other countries. It is much smaller. “Compare it to the import tariff that India runs,” he said.

It is admitted that palm oil imports in 2018 decreased about 22% compared to those in 2017. He said that it happened for the previous imports were to produce biofuel. But they do not do it anymore.

The trade system is that palm oil is processed in Indonesia to be biodiesel and sold to European Union. “The cheaper palm oil in 2018, if combined to the palm oil exports of Indonesia and biodiesel to European Union, was decreasing 2% compared to it in 2017. In the first five months in 2019, the import volume was better by the increasing about 0,7%,” he said.  (T2)

For more, please read Focus, InfoSAWIT, October 2019

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