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Thursday, 01 October 2020 15:22

Vice President: Indonesia's Palm Oil Exports Declines During Pandemic

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Vice President Ma'ruf Amin. Vice President Ma'ruf Amin. Antara Foto

Vice President Ma'ruf Amin said palm oil exports from Indonesia to destination countries had decreased during the COVID-19 pandemic and t affected the sustainability of palm oil farmers and business players.

"During the COVID-19 pandemic, palm oil exports in Indonesia has decreased by around 11 percent in the first half of 2020," Ma'ruf Amin said when opening the Santripreneur Potential Development program based on Small and Medium Enterprises and Cooperatives (UKMK) Palm Oil as an Economic Empowerment Program Area in Jakarta, Thursday.

Ma'ruf said that the oil palm commodity is a mainstay of the Government because the palm oil industry contributes quite a lot to national development.

Apart from being influential in the economic sector, the palm oil industry also has a strategic role.

"Indonesia is the largest palm oil-producing country in the world, controlling 55 percent of the global export market share. The oil palm industry and plantations can create ample job opportunities while improving the welfare of the surrounding community," he explained.

Because of the quarantine or lockdown policies in European countries and China, palm oil exports from Indonesia have weakened compared to the period before the COVID-19 pandemic.

"The main export destination country for Indonesian palm oil exports, which was dominated by Europe, has changed and diversified between others to India, China, and Africa," he said.

Even though palm oil exports are weakening, according to Ma'ruf, there is hope that domestic palm oil consumption has recorded positive growth.

"The Indonesian Palm Oil Association (Gapki) noted that domestic consumption of palm oil in the first half of 2020 was 8.66 million tons or an accumulative increase of about 2.8 percent," he said.

To strengthen the palm oil industry in the domestic market, the Vice President asked for increased cooperation and collaboration from various related parties to increase the production and marketing of palm oil products.

"This collaboration is important to enlarge and accelerate the production, distribution, and marketing of palm oil products," he said. (Antaranews)

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