Indonesia again records transactions export shell palm of US$ 12 million or Rp. 170 billion to Japan. These additional transactions further strengthen Japan’s position as Indonesia’s main market for palm shell commodities.
The agreement of US$12 million is the result of one-on-one business matching between Indonesian palm oil shell business players and Japanese biomass industry players which was carried out in Pekanbaru, Riau on Wednesday–Thursday (24–25/11).
The business meeting was facilitated by the Ministry of Trade together with the Japan External Trade Organization (JETRO) Jakarta and the Association of Palm Shell Entrepreneurs (APCASI).
“To maintain the trade balance surplus, the government continues to develop products and commodities with export potential with high demand and selling value in the global market. One of these commodities is palm oil shells,” said the Director General of National Export Development of the Ministry of Trade Didi Sumedi, in a press release, Saturday (27/11).
Previously, Indonesia had also secured export transactions to Sakura Country several times.
Business matching with previous Japanese business actors in April 2021 has succeeded in spawning shipments of palm shells by PT Internasional Green Energy as much as 10 thousand tons.
In early November, PT Prima Khatulistiwa Sinergi also secured a transaction of 11 thousand tons to fulfill a contract for continuous shipments per month to the Japanese market.
In early December 2021, PT Jatim Propertindo will also send 20 thousand tons of palm shells to fulfill a similar contract with a company in Japan.
Exports of Indonesian palm shell products in January–September 2021 have reached USD 286 million, or around Rp 4.1 trillion. This value increased by 27.01% compared to the same period in 2020.
The main export destination for Indonesian palm shell products is Japan with an 84.5% share followed by Thailand, Singapore, South Korea and India.
Japan is expected to continue to be the main market for the commodity.
This target is in line with Japan’s energy policy which stipulates that 24% of energy fulfillment in Japan in 2030 must come from new and renewable energy.
The Director of Export Development Cooperation at the Ministry of Trade, Marolop Nainggolan, said that the Ministry of Trade will continue to encourage increased exports of palm shells to Japan through collaboration with various stakeholders.
The Directorate General of National Export Development of the Ministry of Trade together with the Japan External Trade Organization also seeks to maintain and increase exports of palm shells to Japan.
One of them is by inviting prospective buyers to directly inspect warehouses and processing factories to be more confident in the quality of Indonesian palm oil shells.
Among them is by visiting the stockpile and palm shell producing mills in the Siak and Dumai areas.
“We hope that prospective business partners from Japan believe in the huge potential of Indonesian palm oil shells and are interested in establishing long-term business cooperation with local business actors,” said Marolop.
As is known, most of the world’s palm shell production is in Indonesia.
The supply of palm shells in Indonesia comes from Jambi, Riau, West Sumatra, Central Kalimantan and North Sumatra.
Indonesia’s main competitors for palm shell products are Malaysia and Thailand.
Despite promising exports, Indonesian palm shell exporters face relatively tight competition with Malaysian exporters
The price of palm kernel shells in Malaysia is relatively cheaper and stable, while prices in Indonesia are volatile and tend to rise due to export duties and export levies, as well as the lack of supporting infrastructure.
As is known, the value of Indonesia-Japan trade in January-September 2021, Indonesia’s total non-oil and gas trade with Japan reached US$ 22.53 billion.
This value increased by 29.08% from the same period the previous year which was valued at US$ 17.46 billion.
Meanwhile, Indonesia’s non-oil and gas exports to Japan from January to September 2021 reached US$ 12.12 billion and Indonesia’s imports from Japan amounted to US$ 10.41 billion.
Thus, Indonesia posted a surplus against Japan of US$ 1.70 billion.
Indonesia’s main export commodities to Japan in 2020 include coal, precious metal scrap, petroleum gas, nickel, and insulated cables.
Indonesia’s main import commodities to Japan in 2020 include motor vehicle accessories, sheet steel in the form of coils, steam turbines, and motor vehicles. completely knocked down.
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