Good News for Palm Oil from Europe

Good News for Palm Oil from Europe

InfoSAWIT, JAKARTA – The war between Russia and Ukraine makes sunflower oil supply to European Union raise issues because the two are the main sunflower oil producers. As the result, European Union countries multiply their vegetable oil needs by substituting it to palm oil for the lack of sunflower oil supply.

Spoke-man of Indonesian Palm Oil Association (IPOA), Tofan Mahdi said the war between the two countries delivers the positive to palm oil producers, for instance, Indonesia. For European Union countries are lack of vegetable oil, they re-purchase palm oil.

Prior many countries branded their products ‘Palm Oil Free’. “This is the right time to campaign the potential and impacts of palm oil in Indonesia. We hope that the people could understand more other interests behind the negative campaigns that European countries did. Palm oil from Indonesia really does have contribution,” he said.

In 2021, palm oil sector was the export mainstay in national scale by its contribution that could reach 15%. The 2021 exports reached US$ 35 billion. It means, more than Rp 500 billion of exchange derived from it.

Now palm oil industries positively contribute to the exchange. Tofan told, the government of Indonesia gets lucky because the income from crude palm oil reached US$ 1.500 per ton, the tax to pay (Out Fee) about US$ 200 and export citation about US$ 375 which means, the total from export about US$ 575 should be paid to the government.

The total value, when the commodity gets better price, makes it the right moment for stakeholders and growers to improve its governance and the production could be better within the increasing performance. (T2)