JAKARTA – The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that there will be no impact of Indonesia’s joining BRICS alliance to the palm oil exports to Europe.
The BRICS grouping consists of Brazil, Russia, India, China, South Africa. It is seen as an emerging global bloc and counterweight to the Western grouping, which potentially create new markets for developing countries like Indonesia. Indonesia’s current status in BRICS is an “interested country.” If it proceeds with membership acceptance process, it will then become a “prospective member”, then an “invited member” before finally gaining full member status.
“I believe that if Indonesia joins BRICS, there will be no impact to our palm oil exports, including to Europe,” Eddy told Warta Ekonomi on Monday (11/11/2024).
Eddy said that palm oil at the global market is irreplaceable, as it has become part of the global needs for vegetable oils. “Indonesia is the world’s largest producer of palm oil. If Indonesia joins BRICS grouping, it won’t affect its exports of palm oil. I believe the European Union will still need palm oil, especially to meet their needs for foods,” he said.
According to him, factors that will affect Indonesia’s exports of palm oil will include the implementation of European Union Deforestation-Free Regulation (EUDR). Until now, it’s not yet clear on its technical application,” he said.
Regarding price, economists have projected that the price of palm oil until February or March 2025 will reach Rp17,500 per kilogram.
GAPKI has previously stated that the palm oil industry players are ready to collaborate with the government under President Prabowo Subianto in weathering through the national and global challenges and further developing palm oil as the country’s top and strategic export commodity.
According to Eddy, Indonesia’s palm oil industry is now facing uncertainty due to potential food and energy crisis and trade barriers imposed by importing countries, including those in EU.
Eddy also mentioned about the stagnant production of palm oil during the last few years, as a result of the slow implementation of replanting program for smallholders’ palm plantations. (*)
Source: wartaekonomi.co.id
