Indonesian Trade Minister Enggartiasto Lukita (Source: Antara) Jakarta (VNA) – Indonesia will prioritise importing buffalo meat, rice and raw sugar from India, which agreed to adjust crude palm oil (CPO) tariff for the country earlier this month.
Indonesian Trade Minister Enggartiasto Lukita said at a recent event that India has given Indonesia an opportunity to increase its CPO exports, adding it is fair to give the South Asian nation access to the Indonesian market.
India is the largest palm oil market of Indonesia with export share of about 20 percent, equivalent to 6.71 million tonnes last year.
Previously, Indonesia’s palm oil products faced a 50 percent import tariff from India, while those from its rival producer Malaysia enjoyed a lower tariff of 45 percent thanks to a bilateral deal. India has agreed to adjust Indonesia’s tariff to match the levy faced by Malaysia.
In six months, Indonesia will ship CPO worth at least 500 million USD to India, Enggar said.
Despite prioritising India as an import origin country, Indonesia would not increase the total volume of its meat, rice and raw sugar import, he noted, saying Indonesia will only buy what it needs as long as the market can absorb the products.
He added that imports of India’s buffalo meat could fill in the gap of the 620,000-tonne meat demand as local producers can only provide about 450,000 tonnes.
As for raw sugar, Enggar stated the country had equalised India’s import duty with other countries, namely Australia and Thailand.
Meanwhile, when it comes to importing rice, Indonesia will prioritise India’s products, particularly basmati rice, the minister said, adding that the two countries were also looking at other commodities for trade, such as textiles.
The two countries are aiming for 50 billion USD in bilateral trade by 2025./.
VNA
