Indonesia seeks new markets for palm oil

Illustrative photo (Photo: AFP/VNA)

Indonesian palm oil companies are seeking new markets in Europe, Africa and the Middle East as they try to protect themselves from the impact of the US's trade war.

Indonesia is the world's biggest producer of the edible oil used in making foods such as cakes, chocolate, and margarine as well as cosmetics, soap and shampoo, accounting for more than half of the global supply.

The 32% tariff that the US imposed on the country make it one of Asia's hardest hit by the US President's sweeping measures that have sent shockwaves around the world.

Palm oil is one of Indonesia's biggest exports to the US, and while Trump has announced a 90-day pause on the levies, producers say the uncertainty is forcing them to look elsewhere to earn their keep.

Eddy Martono, Chairman of the Indonesian Palm Oil Association (GAPKI), told media on April 10 that the pause gives time for them to negotiate, so products can still enter the US.

However, he warned that market diversification must still be done to avoid the impact of the tariffs if they come into force later in the year.

He added that firms would look to Africa, specifically top importer Egypt; the Middle East; Central Asia; and Eastern Europe.

According to GAPKI data, exports of palm oil products to the US have steadily grown in recent years, with Indonesia shipping 2.5 million tonnes in 2023, compared to 1.5 million tonnes in 2020./.

VNA

Source: https://en.vietnamplus.vn/indonesia-seeks-new-markets-for-palm-oil-post313366.vnp