JAKARTA – The palm oil has three strategic values in keeping the balance of food production and fulfillment of global demand, said Novi Dwi Ratnasari, the coordinator of agricultural function and commodities development at the directorate general of multilateral cooperation of Indonesian foreign ministry (Kemenlu).
She pointed out that the first of the three strategic values is the fact that palm oil is an important raw material for various global industries, mainly foods, cosmetics, soaps, hand-sanitizers and renewable energy source (biodiesel).
Second, the palm oil industry has played an important role in achieving the goals set by the United Nations (UN) through the sustainable development goals (SDGs) expected to be realized in 2030. The SDGs include eradication of poverty, improvement of nutrition and foods security, creation of job opportunities, protection of environment and others.
Recently, the foreign ministry issued a research-based report which shows that among the four top vegetable oils (palm oil, rapeseed, soybean, and sunflower), the palm oil excels in achieving the UN’s SDGs, especially in eradicating poverty and in strengthening foods security.
Third, the palm oil industry in Indonesia is a major contributor of foreign exchange which helps realize sustainable development. “During the period of January-November 2020 Indonesian exports of palm oil reached US$18.35 billion, contributing 13.16% to Indonesia’s total non-oil-gas exports or 12.5% of the total Indonesian exports,” she said.
Novi said that the price of palm oil has increased to the level much higher than that of the same period last year. “It was resulted from the decrease of palm oil stock at the international market, especially in the importing countries, by around 26 percent since 2019, the rising trend of vegetable oils’ prices at the global market, and the impact of bad weather that affected the palm oil production in the palm oil producing countries,” Novi was quoted by InfoSAWIT as saying recently.
She said that as part of Kemenlu’s global diplomatic endeavors, it will keep intensifying efforts of strengthening economic diplomacy, especially in promoting the palm oil, conducting marketing intelligence, safeguarding its global competitiveness, increasing global acceptance of the Indonesian Sustainable Palm Oil (ISPO), and trying to remove trade barriers in the countries of accreditation. The trade barriers include the discriminatory policies by certain countries, and the application of unilateral standards of sustainability for certain commodities, including the palm oil.
According to her, the Indonesian foreign ministry is also seeking to optimize Indonesia’s memberships in various international organizations, such as the Council of Palm Oil Producing Countries (CPOPC), FAO, WTO, ASEAN, and other related global organizations.
“We’ll increase synergy with other institutions and stakeholders to get latest data to support the promotion of Indonesia on its efforts of realizing the sustainable palm oil,” Novi asserted. (*)
Source: wartaekonomi.co.id | Featured image via wwf.org.uk