JAKARTA. The Indonesian government claimed that the B30 policy can help reduce trade balance deficit and increase exports.

Iskandar Simorangkir, Deputy for Macroeconomic and Financial Coordination for the Coordinating Ministry of Economic Affairs, is optimistic about this because the B20 program that was initiated in 2018 has been successful. "With the switch to B30 this year, CPO export prices have risen and oil and gas imports, especially diesel fuel, have declined," Simorangkir said, as reported by Kontan on Tuesday (14/1) today.

During the period of January-November 2019, the trade balance deficit from the oil and gas sector reached US$ 8.31 billion. The ministry considers that the deficit has improved, compared to the deficit in 2018 which reached US$ 12.38 billion.

Even so, Simorangkir admitted that CPO prices in the global market had weakened since 2018. However, he was optimistic that CPO prices could recover this year. (KR/AR)