Indonesia and Pakistan Agree to Form Indonesia-Pakistan Joint Palm Oil Committee (IP-JPOC)

Indonesia and Pakistan has signed the declaration of the establishment of the Indonesia-Pakistan Joint Palm Oil Committee (IP-JPOC). Witnessed by the Ambassador of the Republic of Indonesia to Pakistan H.E. Mr. Iwan S. Amri, the declaration was signed by the Chairman of the Indonesian Palm Oil Association (GAPKI) Mr. Joko Supriyono and the Chairman of Pakistan Vanaspati Manufacturers Association (PVMA) Mr. Izaz Lahi Malik on the sidelines of the Palm Oil Conference (POC) in Kuala Lumpur on March 7, 2017.

Indonesia and Pakistan Agree to Form Indonesia-Pakistan Joint Palm Oil Committee (IP-JPOC)

IP-JPOC aims to increase mutual understanding between the palm oil industries in the two countries and to more effectively address the technical issues concerning the palm oil trading between the two countries. It also aims to further strengthen the businesses relationship in the palm oil sector between the two sides and would facilitate coordination and provide a communication mechanism that is more institutionalized while stimulating wider economic cooperation between Indonesia and Pakistan.

The idea of the establishment of IP-JPOC was initiated by Ambassador of the Republic of Indonesia H.E. Mr. Iwan S. Amri at the Indonesia-Pakistan Business Forum meeting that held in Karachi in January 2017. Businessmen attending the Forum from the both sides warmly welcomed the proposal and agreed to follow up during their meeting on the sidelines of the Malaysian Palm Oil Conference, in March 2017.

Expressing his pleasure and welcoming the establishment of the Joint Indonesia-Pakistan Palm Oil Committee (IP-JPOC), Ambassador of the Republic of Indonesia H.E. Mr. Iwan S. Amri believed that IP-JPOC will open up more opportunities for economic cooperation including trade, investment and tourism between the two countries. “The spirit of the establishment of IP-JPOC is basically to strengthen economic and trade relations between Indonesia and Pakistan, including opening up new opportunities of cooperation in the oil palm sector,” Ambassador Iwan said.

IP-JPOC besides cementing the position of Indonesian palm oil in the Pakistani market is also expected to serve as a bridge for the marketing of Indonesian palm oil market to South and Central Asia and the Middle East. Based on data from Oil Plantation Fund Management Agency (BPDP) of Indonesia, the total export value of Indonesia’s palm to the world reached USD 17.9 billion in 2016. The top five export destinations of Indonesian palm oil, are India (USD 3.59 billion), China (USD 2, 27 billion), Pakistan (USD 1.26 billion), the Netherlands (USD 1.13 billion), and United States (USD 952.2 million).

Indonesia since 2014 until 2016 has dominated the palm oil market in Pakistan. In 2014, Indonesia had a market share of 72.5%, which increased to 83% in 2015 and 82% in 2016. In 2016, Pakistan imported 2.4 million metric tons of palm oil. A total of 1.9 million metric tons from Indonesia, while 442 thousand metric tons was imported from Malaysia. ​

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EPOA welcomes Indonesian Palm Oil Association GAPKI as a full member

Friday 12 February 2016, the Indonesian Palm Oil Association (GAPKI – Gabungan Pengusaha Kelapa Sawit Indonesia) became a full member of the European Palm Oil Alliance (EPOA). Indonesia and Malaysia together supply 85% of the palm oil used globally. Welcoming the Indonesian palm oil producers as a member of EPOA  is an important step to rebalance the debate on palm oil in Europe and towards a fully sustainable palm oil supply chain in Europe by 2020.

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Indonesian Palm Oil Conference 2016

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