Meet Minister Airlangga, Director of CPOPC Discusses the Export of Palm Oil Industry

INDUSTRY.co.id - Jakarta, the domestic palm oil industry already exports to several countries. There is little constraint in palm oil exports, but we are in the process. The constraints of oil palm exports must be addressed immediately because our palm oil industry is one of the largest in the world.

This was stated by Minister of Industry, Airlangga Hartarto when he received a visit from the Executive Director of the Council of Palm Oil Producing Countries (CPOPC), Mahendra Siregar at the Ministry of Industry, Jakarta (14/8/2017).

As is known, the EU recently passed a resolution of Parliament of the European Union related to the certification of palm products and the ban on palm-based biodiesel. They consider that oil palm plantation and land expansion will damage the land itself. In fact, Indonesia already has ISPO (Indonesia Sustainable Palm Oil), and also the same standard as Malaysia through Roundtable on Sustainable Palm Oil (RSPO).

To note, Indonesia and Malaysia joined CPOPC in order to strengthen cooperation among palm oil producing countries while strengthening and developing the palm oil industry.

Indonesia and Malaysia agreed to jointly oppose the European Union's resolution on a palm-based biodiesel trade ban. The two neighboring countries plan to take the case to the World Trade Organization (WTO).

Both countries consider the EU resolution and unfair labeling practices by the private sector to have a negative impact, not only on palm oil exports from Malaysia and Indonesia to the EU market, but also to the livelihoods of millions of small farmers.

Airlangga further said the Indonesian government is also keen to discuss mapping the standards and sustainability of the palm oil industry development program. At the same time the expansion of green industry between the two countries in CPOPC.

Based on the records of the Ministry of Industry, Indonesia is the number one producer of palm oil in the world. In fact, the export value of crude palm oil and its derivatives reached US $ 20 billion. "Industry palm oil is one of the sectors that contribute and has great potential in national development," added Airlangga.

The potentials include employment, value creation, and state revenue, export earning, and contributing to the national Gross Domestic Product (GDP). "In addition, the palm oil industrial sector plays a role in equitable development and economic sovereignty of the nation, especially for areas outside Java, remote areas, and border areas of the country," he concluded.