Indonesia Supplies Raw Material of Nigeria Staple Food

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  • TEMPO.CO, Jakarta - Trade Minister said they are offering Crude Palm Oil exports to Nigeria to help the country prepare its staple food feedstocks, instant noodle.

    The offer was delivered during a visit to Nigeria on July 24. "People from the lower class to the upper class eat Indomie instant noodles daily," Trade Minister Enggartiasto Lukita said at a press conference at the Ministry of Home Affairs' office, Jakarta on Monday, July 31.

    Enggartiasto said Nigeria is facing the lack of the supply of CPO. Crude Palm Oil (CPO) is one of the raw materials of instant noodle. Nigeria has set up a CPO factory but is lacking to meet its needs. PZ Wilmar also has a CPO factory in Nigeria but is only able to supply 20 percent of the total capacity and must compete with CPO from smugglers.

    Nigeria's CPO production was only able to supply about 30 percent of the need to use the production of 14 instant noodle factories established by the Salim Group that is associated with the Tolaram Group from Malang, East Java. On the other hand, Nigeria limits imports including refusing imports of finished goods.

    According to Enggar, Indonesia could have invested there but will disrupt production and will be charged at about 55 percent. "Because Nigeria keeps their economy."

    Therefore, Enggar suggests that Indonesia and Nigeria make counter-treatments; Indonesia will import oil from Nigeria and export CPO and instant noodle raw materials to the country. However, Enggar did not explain Nigeria's response to the offer.