Amid the current account deficit, the government and private sector work hand in hand to expand the export market of palm oil by sending trade mission delegations to Pakistan.
“We will depart to Karachi, Pakistan,” the Indonesian Palm Oil Producers Association (GAPKI) deputy chairman Togar Sitanggang said in Jakarta on Tuesday.
After the Indonesian government, along with palm oil businessmen, succeeded in conducting trade diplomacy to the European Union and Russia, it has now targeted Pakistan, which is the fourth largest buyer of CPO after India, the European Union, and China.
Pakistan fulfills its palm oil needs as much as 80 percent from Indonesia and only 20 percent from Malaysia, Sitanggang remarked.
“Pakistan is a strategic market for Indonesia,” he added.
Of the total value of Indonesia`s palm exports, which reach US$22.9 billion in 2017, Pakistan contributed around $2 billion, or almost 10 percent.
With a population of 207 million, Pakistan`s need for vegetable oil, including palm oil, is expected to continue to increase.
In accordance with the visit, a Conference and Exhibition on Indonesia Palm Oil (CEIPO) will be held in Karachi on Sept 6, 2018.
Indonesian ambassador to Pakistan, Iwan Suyudhie Amri; Council of Palm Oil Producing Countries (CPOPC) chair; GAPKI general chairperson, Joko Supriyono; and the Indonesian Oil Palm Estate Fund (BPDP-KS) president director, Dono Boestami, will be present as speakers at the meeting, in addition to a number of businessmen from Pakistan, such as Edible Oil Refinery Association chairman Abdul Rasheed Janmohammad and Pakistan Vanaspati Manufacturer Association (PVMA) chairman Abdul Waheed.
“The main objective of the trade and diplomacy mission to Pakistan is to increase the volume of Indonesian exports to Pakistan, including the export of palm oil,” Sitanggang pointed out.