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Editorial

The Government Will Boost the CPO Export to China

13 June 2017 , 06:28 WIB | Read : 70 | By : Administrator

InfoSAWIT, JAKARTA – To increase palm oil exports namely biodiesel, the government of Indonesia will make China as the potential country. It has something to do with China’s Policy to implement biodiesel mixture, 5% with diesel, or B5.

Chairman of Indonesian Biofuel Producers Association, M.P. Tumanggor said, “B5 in China will add the crude palm oil (CPO) usage reaching 9 million tons. If China has run it, we don’t care about Europe and USA,” he said, as quoted from Sindonews.

He also said, the 9 million ton – needs derive from diesel needs in China, about 180 million ton kiloliters. If it is multiplied by 5%, it equals 9 million kiloliters or nine million tons. Last year,  palm oil exports from Indonesia to China reached 3,8 million tons.

In Belt and Road Forum for Internatinal Cooperation in Beijing, China, in May, President Joko Widodo said that Indonesia welcome the biodiesel 5% mandatory program which China would develop. It was explained, China would need more CPO and Indonesia could supply it.

Vice Chairman of Indonesian Palm Oil Board, Sahat Sinaga said, the big demand of CPO or biodiesel from China could cover the decreasing selling to USA and European Union. Since 2006 the bioodiesel exports to USA has not been competitive for the implementation of incoming tax tariff

Sahat also mentioned, eversince USA is out of COP 21 Agreement, the country is not obliged to mix biodiesel. The other factor is that the anti-dumping policy is aimed to biodiesel produced by Indonesia. It is said, the biodiesel exports to USA were pressed because of the dumping accusation and subsidy. Not only that, the selling price is not competitive because of the incoming tax.

These are the reasons for the stakeholders to implement B5 in China. The stakeholders who want to cooperate, such as, Chinese stakeholders, could build biodiesel factory in Indonesia. The biofuel producers in Indonesia who build factories in China have the material from Indonesia.

The delegation of Indonesia will visit China to follow up what President Joko Widodo and President of China, Xi Jinping had discussed. “The delegation would go to China on June 16th, led by Coordinator Secretary of Maritime, Luhut Panjaitan,” he said. (T4)

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