China Asks Indonesia to Guarantee Palm Oil Supply as Export Hits $2.72 Billion

China has asked Indonesia to make sure that Beijing gets enough supplies of crude palm oil (CPO) and other commodities amidst rising demand, according to Deputy Agricultural Minister Sudaryono.

China recently sent its deputy minister of agricultural and rural affairs Maierdan Mugaiti to make the request.

“China has asked us to guarantee their supply of CPO. They also made a similar request for natural rubber and edible bird’s nests,” Sudaryono told the press in Jakarta on Tuesday.

The government reported that Indonesia enjoyed a surplus of $1.77 billion in agricultural trade with China throughout 2024. Indonesia’s biggest exports were palm oil, reaching $2.72 billion in value. Followed by edible bird’s nest ($428 million), rubber ($363 million), coconut ($270 million), and cacao ($218 million).

“China is requesting long-term CPO supply certainty. They see their country’s growing demand for palm oil, while Indonesia is the world’s largest producer,” Sudaryono said.

According to the deputy minister, Indonesia will also ramp up its palm oil productivity to meet the demand for the so-called biodiesel program. Indonesia is currently implementing the B40, which requires the blending of diesel fuel with 40 percent palm oil. The number represents the percentage of the palm oil blend. Indonesia is planning to implement the mandatory B50 blend by next year.

“We ensure that palm oil productivity continues to be strengthened to meet domestic demand, including supporting the B50 energy program, and ensuring a secure export supply,” Sudaryono said.

Tags: demand, China, exports, Indonesia, Crude palm oil