Nusa Dua – Economic Coordinating Minister Airlangga Hartarto said that there is a possibility to increase the exports of palm oil products in Southeast Asian region as it has been ensured that the region will not be affected by the global economic recession.
“It has been ensured that countries of ASEAN-5 will be free from the impacts of global recession during 2022 – 2023,” Airlangga told the participants of the Indonesia Palm Oil Conference (IPOC) 2022 in Nusa Dua, Bali, on Thursday, 03 November 2022.
Minister Airlangga stated that unlike the economic condition of several other countries, member countries of ASEAN will see higher economic growth with inflation at relatively moderate level.
“Such condition will allow an increase of palm oil consumption in the region. It can be the increase of consumption for oleofood, for substitution of fossil fuels or petrochemicals that have been rising at the global market,” he said when opening the 18th IPOC 2022 and 2023 Price Outlook in Nusa Dua, Bali.
According to the minister, who is also the chairman of Golkar political party, the increase of global oil prices during 2022 has also driven up the prices of petrochemical products. “Therefore, efforts to substitute the fossil fuels with palm oil-based biodiesel and other green fuels, and petrochemical with palm oil-based oleochemical will further grow the palm oil industry amid the global crisis. Until this year, Indonesia still keeps the implementation of biodiesel 30 percent (B30). Currently, the market index price (HIP) of biodiesel is lower than the HIP of diesel fuel,” Minister Airlangga said.
He said that to tackle the problem of cooking oil price increase caused by the increase of production cost, the government is seeking to replace it with the production of red cooking oil from red palm oil. “Indonesia has a high prevalence rate of stunting as 7.4 million children below 5 years old (30%) in the country are stunted,” he said.
According to him, the red cooking oil can be a solution to solve the problem of cooking oil supply shortage and the stunted children. Its production will also develop the small and medium enterprises (SMEs).
“In weathering through the global crisis, all stakeholders in Indonesia should continue implementing the triple bottom line of social, environment, and finance in the plantation sector, especially the oil palm plantation,” he asserted. (*)
Source: inilahbanten.com
