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<\/p>\nJAKARTA \u2013 The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that the Indonesian palm oil industry still has a much greater potential for further development to generate higher economic growth, increase foreign exchange income, and create more job opportunities in the future.<\/p>\n
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\u201cBut for such purpose, the palm oil sector badly needs the support of government in designing more conducive policies and in driving up collaborations among all stakeholders,\u201d Eddy Martono said when addressing the BNI Investor Daily Summit 2023 on Tuesday, 24 October 2024.<\/p>\n
He said that without the palm oil, Indonesia\u2019s trade balance will be negative. \u201cIn 2022 the palm oil sector contributed US$39 billion or around Rp600 trillion in foreign exchange from exports.<\/p>\n
\u201cThis is no joke. Really, it\u2019s an outstanding figure. Without palm oil, our trade balance will be minus. It has proven how amazing it is. The more so, as it employs more than 16 million people. And in almost 24 hours we go about our daily lives using products related to the palm oil. It\u2019s kind of saying that it is politically potential for the establishment of a palm oil political party,\u201d he said.<\/p>\n
According to Eddy Martono, the biodiesel mandatory program of biodiesel 35 percent (B35) has been a great help to the government in saving the foreign exchange through the reduction of diesel fuel import.<\/p>\n
\u201cUnfortunately, palm oil has been the target of attacks at home and abroad,\u201d he said.<\/p>\n
He reminded that in developing the palm oil industry, Indonesia should learn from the sugar sector. \u201cIn the past, Indonesia was the world\u2019s exporter of sugar. But now it has become an importer. The development of our palm oil industry needs more conducive policies and should be free from overlapping regulations.<\/p>\n
\u201cCurrently, our palm oil sector is handled by 30 ministries and institutions. Looking forward, it should be simplified. We can take as an example our neighboring country, where there is only one powerful institution that is assigned to manage their palm oil industry,\u201d he asserted.<\/p>\n
Eddy Martono said that currently China is the biggest importer of CPO from Indonesia, followed by India and European Union (EU).<\/p>\n
But he projected that Indonesia\u2019s CPO production will decrease, possibly at only around 50 million tons in 2028, due to the trade barriers at the global market, which include the implementation of European Union Deforestation-free Regulation (EUDR).<\/p>\n
“CPO production in 2028 is estimated to reach 50 million tons, and it\u2019s feared to only reach 51 million tons in 2035,” said Eddy.<\/p>\n
Eddy Martono said that considering such condition, it is necessary to find solutions to counter negative campaigns against palm oil and to deal with the discriminatory EUDR. (*)<\/p>\n