China's willingness to increase the import of palm oil from Indonesia by 500 thousand tons strengthens Indonesia's bargaining position against the EU. The Coordinating Minister for the Ministry of Marine Affairs, Luhut Panjaitan, said that the EU now understands Indonesia's stronger position, it is expected that negotiations will go smoothly.
"(Lobby with the European Union) Until now, I think it means that now they know our position, obviously he knows we are strong, especially with China to buy (Indonesian palm oil) it also gives a signal to him too," said Luhut found in Hotel Borobudur, Jakarta
Luhut said Indonesia's largest CPO exports are to India, the European Union and China.
"Now, the largest export volume of CPO, India, 2017 7.6 million tons, EU 5 million tons, China 3.7 million tons," said Luhut.
Luhut added that the transaction process of Indonesia's palm products to China still needs to pass through administrative procedures. It is expected that an agreement to increase the supply of palm oil to China can be realized this year.
To note, China plans to import 500 thousand tons of Indonesian palm products discussed in a meeting between President Jokowi and Chinese Prime Minister Li Keqiang. Li agreed to increase the export of palm oil by 500,000 tons to China.
"In particular, PM Li Keqiang has undertaken a form of increasing our exports, adding at least 500,000 tons of crude palm oil to China," said Jokowi during a press conference at the Presidential Palace of Bogor, West Java,