Indonesia seeks new markets for palm oil imports

Companies in Indonesia, the world’s largest palm oil producer, are looking to new markets in Europe, Africa and the Middle East as they seek to protect themselves from the fallout from the trade war with the United States.

The 32% tariff imposed by the United States makes the country one of the hardest hit by the sweeping trade war that has sent shockwaves around the world. Palm oil is one of Indonesia’s biggest exports to the United States, and while Trump announced a 90-day tariff suspension, producers say the uncertainty is forcing them to look elsewhere.

Eddy Martono, chairman of the Indonesian Palm Oil Producers Association (GAPKI), told media on April 10 that the pause gives them time to negotiate so product can still flow to the United States. However, he cautioned that market diversification must still be done to avoid the impact of the tariffs if they are later implemented.

He added that companies would be looking to Africa, especially the largest importer Egypt, as well as the Middle East, Central Asia and Eastern Europe.

GAPKI data show that palm oil exports to the US have been steadily increasing in recent years, with Indonesia expected to supply 2.5 million tonnes in 2023, up from 1.5 million tonnes in 2020.

Tags: Indonesia, palm oil