RI-Japan Agree On Palm Shells Contract Worth US$138.2m

Jakarta – Indonesia bagged a sale contract of palm kernel shells worth US$138.2 million from Japan, which will use it to meet its rising renewable energy need. The contract agreement was signed during a business meeting in Tokyo recently.

“This business meeting was held by the Indonesian government, through the trade ministry and Indonesian representatives in Japan, and the Association of Indonesian Palm Kernel Shell Businessmen (Apcasi) to increase Indonesia’s export of palm kernel shells to Japan,” the trade ministry’s National Exports Development Director General Didi Sumedi said in a press release in Jakarta on Wednesday, 28 September 2022.

Didi said that as the world’s largest producer of palm oil, Indonesia also produces the palm kernel shells as the waste from the oil palm plantations and at certain amount it has been exported to many countries. In 2021, some 87.1% of the palm kernel shell export was destined to Japan.

The trade ministry and the association of Indonesian palm kernel shell businessmen (Apcasi) facilitated six Indonesian companies that involve in the business of palm kernel shells in the business meeting.

The business meeting that resulted in the palm kernel shell contract is part of the trade mission with the theme “Business Meeting of Indonesia Palm Kernel Shell”.

Didi expressed his appreciation to the support and cooperation of Apcasi and the Japanese trade representatives who collaborate with the Indonesian representatives in Japan in increasing the Indonesian export of palm kernel shells as renewable energy to Japan.

Indonesia’s Ambassador to Japan Heri Akhmadi said that Indonesia is the “natural partner” of Japan. It means that Indonesia and Japan have had diplomatic relations since 1958. Japan is also one of Indonesia’s big trading partners and biggest investor.

The Japanese government is committed to increasing green power plants that are generated with renewable energy sources, so that the country needs quality and stable supply.

Indonesia as the largest producer of palm kernel shells has a very big potential to meet Japan’s green energy need through the supply of biomass from the palm kernel shells.

Apcasi Chairman Dikki Akhmar said that as the world’s largest producer of palm oil, Indonesia has a very big potential in providing the palm kernel shells. The Indonesian government has been seeking to increase competitiveness by designing business-friendly regulations, making the price of palm kernel shells much more competitive if compared to other countries.

According to Dikki, the opportunity for investments and trading of biomass wastes is not only in the palm kernel shells. There are other biomass wastes, such as empty fruit bunches, fruit fibers, trunk waste, frond waste and palm oil mill effluent (POME), which are potential to be exported to Japan, (*)

Source: TEMPO.CO