JAKARTA – Indonesia has been continually seeking to expand its palm oil market to non-traditional markets as part of its efforts to reduce reliance on the traditional markets. Such a global endeavor had taken the country to Nigeria, where a cooperation agreement was signed last week.

The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said the global market expansion for palm oil is undertaken by the Indonesian government and GAPKI. The market expansion was marked with the signing of a memorandum of understanding (MoU) between GAPKI and the Nigerian Association of Palm Oil Producers (NPPAN) during the Indonesia Expo, which was held in conjunction with the Afficient Event Center, Kano, Nigeria, on Friday (23/8/2024).

“The signing of the MoU marks an important step in our efforts of increasing the economic and trade relations between Indonesia and Nigeria, especially in the sector of palm oil. We’re committed to supporting the growth of palm oil industry in Nigeria and strengthening cooperation between Indonesia and Nigeria,” said Eddy Martono.

According to him, the festival Indonesia Expo was initiated by the Indonesian embassy (KBRI) in Nigeria and it was officially opened by Indonesian Ambassador to Nigeria, Usra Hendra Harahap, in Afficient Event Center, Kano State, which is the most populous state in Nigeria.

One of activities conducted during the Expo was a comparative study to a cooking oil packaging factory in Kano Free Trade Zone (KFTZ).

During the visit to KTFZ, the Indonesian delegation was led by  KBRI’s Head of Chancellery, Fahmi Aris Innayah, and the Head of Traders Association of Kano Kascote Exco, Hassan Tahir Yaro.

In welcoming the visitors from GAPKI and NPPAN, the KFTZ Director Muazu Musa Sahabi expressed the hope that the MoU signed by GAPKI and NPPAN will  further push up the growth of palm oil industry in Nigeria. “We’re committed to facilitating the inflow of investments by offering a variety of incentives,” he said.

“Tax reduction, VAT exemption, free import tax, and guarantee of safety are given to all investors who invest in Free Trade Zone in Kano,” said Muazu.

Currently, Indonesia’s total exports of palm oil products to Africa reached 4.2 million tons in 2023, with 94,000 tons being shipped to Nigeria. Considering that the need for palm oil has been continually rising in Nigeria and its strategic location that links the main trade routes in Africa, Indonesia’s palm oil exports to Nigeria has a big potential to increase.

Immanuel Lingga, Head of the Indonesian Trade Promotion Center (ITPC) Lagos, said that the involvement of Indonesia in Nigeria’s palm oil industry will not only increase the welfare of local smallholders, but it will also lift the positive image of palm oil at global market , particularly in facing the global challenges posed by rising negative campaigns in the European market. (*)

Source: sawitkita.id