JAKARTA - Indonesia and Pakistan continue to strive to improve comprehensive economic cooperation, so as to spur economic growth between the two countries. One of the strategic steps that Indonesia will take is to accelerate the expansion of the export market for crude palm oil (CPO) and palm cooking oil to Pakistan.
“The government has decided to reopen the export of cooking oil, after seeing the condition of the supply being fulfilled in the domestic market and the current decline in the price of bulk cooking oil. Therefore, Pakistan can become a potential market," said the Indonesian Minister of Industry, Agus Gumiwang Kartasasmita at his meeting with Pakistan's Minister of Industry and Production, Syed Murtaza Mahmud in Jakarta, Monday (13/6).
The Minister of Industry explained that the government was running a program to accelerate the distribution of CPO, refined bleached deodorized palm oil (RBDPO), and used cooking oil (UCO) through exports from 7 June to 31 July 2022. “This is in the context of optimizing and stabilizing production and trade chains. CPO, RBDPO, and UCO," he said.
The program applies to all exporters, with an export allocation set at 1 million tons, and each exporter participating in the program is given an allocation of at least 10 tons in multiples. "I believe the issuance of this related regulation can accelerate the import of CPO and its derivatives to Pakistan," he added.
The Minister of Industry is optimistic that increasing cooperation in the industrial sector with Pakistan will boost national export performance. The total trade between the two countries recorded a positive growth of 6.65% during 2017-2021 and recorded a positive growth of 41.77% during 2021-2022.
In 2021, total bilateral trade will reach USD3.9 billion with total exports of USD3.8 billion and imports from Pakistan of USD185 million, both of which are dominated by the non-oil and gas sector. In the last five years, Indonesia has continued to experience positive trade values. In 2021, the trade value was recorded at USD3.6 billion. (LM)