TEMPO.CO, Jakarta - Russia's refusal to import crude palm oil (CPO) from Indonesia did not dampen the government's determination to keep exporting to the Land of Rus. Trade Minister Muhammad Lutfi said Indonesia's CPO market in Russia must be maintained because of its great value.

"Indonesia's CPO exports to Eastern Europe could reach 1.5 million tons. It would be a great loss if it is lost," Lutfi said in Jakarta, yesterday.

According to Lutfi, Russia's ban on Indonesian palm oil is only a tactic to obtain other CPO sources with better proximity, in a bid to reduce the high costs of shipping CPO from Indonesia.

Lutfi said the government and Russia's Minister of Trade and Minister of Economy have held a discussion, resulting in an agreement to that Russia will correct their notification statement to the World Trade Organization (WTO), where they required Indonesian palm oil to have peroxide levels of 0.9 percent by the time they reach Russia.

Lutfi said that Russia's Minister of Economic Development, Alexey Ulyukaev, has promised to resolve this issue as soon as possible.

"In any regards, Russia still needs products from Asia due to its embargo against EU products," said Lutfi.

Meanwhile, Industry Minister Mohamad Suleman Hidayat fears that the Indonesian CPO export market will be saturated soon. The government and producers, he said, must take precautions, such as by absorbing palm oil for biodiesel products.

YOLANDA RYAN ARMINDYA | AMIR TEJO