Saturday, 25 May 2019 | 10:39 WIB

Indonesia Secures Palm Oil Trade Contract worth $130 Million in Egypt

Indonesia Secures Palm Oil Trade Contract worth $130 Million in Egypt (kemendag)

JAKARTA, NNCThe trade mission to Egypt carried out by the Indonesia Ministry of Trade in 2017 has reaped success. The trade mission led by the Director General of National Export Development Arlinda has succeeded in facilitating trade contracts between the Plantation Company of PTPN III (Persero) and PT Chita Agri Indonesia with one of the Egyptian palm oil processing and distribution companies, Oleo Misr Co.

In the trade contract, PTPN III (Persero) Plantation will supply palm oil amounting to 10,000-16,000 MT/month with a value of USD 100 million in 2019. Meanwhile, PT Chita Agri Indonesia will supply palm oil of 4,000-5,000 MT/month with a value of US$ 30 million. If the estimated price of palm oil is USD 5000 / MT, then the potential transactions that will be generated by the two companies will reach US $ 130 million.

"Indonesia's palm oil exports to Egypt tend to increase from year to year. With the closeness of Indonesia-Egypt, we are optimistic we can work on the potential of the Egyptian market. In addition, Egypt can be used as a hub to market Indonesian palm oil products to Africa, "explained Arlinda on Thursday (03/14/2019).

The trade contract agreement was signed by the signing of a memorandum of understanding (MoU) between an Indonesian company and an Egyptian company. The signing was carried out during the Ministry of Trade's working meeting at Shangri La Hotel, Jakarta, on Tuesday (12/3). The signing of the MoU was facilitated by the Ministry of Trade together with the Indonesian Palm Oil Board (DMSI).

This MoU was signed by PTPN III (Persero) Plantation Marketing Director Kadek Laksana, Director of PT Chita Agri Indonesia Machiko Nacih Surjadi, and CEO Oleo Misr Co Mohamed Hussein Radwan. The signing was witnessed by Director General PEN Arlinda, Cairo Trade Attache Irman Adi Purwanto Moefthi, DMSI representative, Indonesian Plantation Companies Association (GPPI), Indonesian Palm Oil Farmers Association (APKASINDO), Desa Emas, and representatives of the Economic Counselor Embassy of the Arab Republic of Egypt in Jakarta .

According to Arlinda, with a population of 100 million, the opportunity for oil palm exports is still quite large. For this reason, the market penetration of palm oil needs to be increased because of the large demand and needs of this commodity for the Egyptian market. In 2018, Indonesia's palm oil exports to Egypt reached more than US $ 560 million with a volume of 919,460 tons

"Even though Indonesia still dominates the Egyptian market by 97 percent, we believe the volume of palm oil exports can still be increased," said Arlinda.