Jakarta — The palm oil industry has been continually giving positive contribution to Indonesian economy, in spite of the outbreak of Covi-19 pandemic which has impacted almost all economic sectors. The exports of palm oil products significantly supported Indonesia’s trade balance, so that it saw a surplus of US$13.82 billion in September 2020.

“Despite the Covid-19 pandemic, the palm oil industry can still survive. It significantly contributed to the trade balance surplus in September 2020,” the Indonesian Palm Oil Association’s (Gapki) Communication Division Head Tofan Mahdi said during a webinar in Jakarta last week.

Based on the government data, the trade balance in September 2020 saw a surplus of US$13.82 billion, as compared to a deficit of US$2.24 billion in September 2019. Tofan noted that the trade balance deficit in September 2019 was due to the low prices of palm oil and the palm oil companies focused on how to survive at that time.

“This year is better than last year, as the palm oil price is very good and enabled Indonesia to book a surplus of US$13.82 billion in September 2020,” he said, adding that until September 2020 the exports of palm oil products contributed foreign exchange at US$15 billion.

“With a total export at US$117 billion and the palm oil industry contributed US$15 billion, that means between 10 -15 percent of Indonesian exports are supported by the palm oil,” he said.

Based on data, the price of palm oil during the third quarter 2020 reached US$666 per ton. “Now, the price of CPO reached US$855 per ton. It means that despite of many economic sectors are weakening, the palm oil industry is still giving positive contribution to the Indonesian economy,” concluded Tofan, the author of the book titled “Pena di Atas Langit” (Pen On the Sky). (*)

Source: majalahhortus.com