TEMPO.CO, Jakarta - Chairman of the Palm Oil Entrepreneurs Association (Gapki), Joko Supriyono, on Tuesday explained that Africa could be an attractive market for crude palm oil or CPO as the continent has shown satisfying export growth each year, even though in smaller packages.
“Africa [purchases] in small packs in the form of 200 tons and 500 tons, but it eventually grows larger. This can be an insight into how we can target traditional markets. Specific issues must be taken into attention,” said Joko Supriyono on Tuesday, June 16.
He explained that based on the HS code, there are 32 Indonesian palm oil products, either CPO, PKO, and its derivatives that are exported to Africa. One of the products is in liquid form that does not exceed 25 kilograms, which constitute 41 percent of the total palm oil export to the continent.
Joko argues that Africa is one of the target markets Indonesia is currently eyeing, especially amidst the weakening global demand for palm oil products due to the COVID-19 pandemic.
This sentiment was echoed by the executive director of the Indonesian Vegetable Oil Industry Association (GIMNI), Sahat Sinaga, who explained that African regions, namely East African countries, is a potential market for Indonesian palm oil products as it is the home of more than 380 million people across 18 countries.