Indonesia Continues to Export CPO to Russia Despite Rejection

TEMPO.CO, Jakarta - Russia's rejection towards Indonesia's crude palm oil (CPO) does not destroy the government’s determination to resume CPO exports to Russia. Minister of Trade Muhammad Lutfi, said that the market of Indonesia's CPO in Russia needs to be maintained because of its large value. "The export market of Indonesia's CPO in Eastern Europe can reach 1.5 tons. It will be a major loss for us should we lose this market," he said in Jakarta yesterday.

Lutfi said that the ban by Russia towards CPO exports from Indonesia is nothing but a scheme to find an alternative source of CPO, preferably from its neighboring countries to minimize transportation costs.

Lutfi also said that the government has communicated with the Russian Ministry of Trade and Ministry of Economy regarding the matter. Both ministries have agreed to rewrite their notification statement to the World Trade Organization (WTO), which previously states that CPO from Indonesia must have a peroxide content of 0.9 percent when it reaches Russia.

"Whatever the case, Russia needs products from Asia due to the Russian embargo towards European Union products," said Lutfi. Alexey Ulyukaev, Minister of Economic Development of the Federation of Russia, had promised to resolve the issue as soon as possible.

YOLANDA RYAN ARMINDYA | AMIR TEJO