Trade Minister Releases Exports of Palm Derivative Products Worth IDR 6.75 Billion to India

 Trade Minister Releases Exports of Palm Derivative Products Worth IDR 6.75 Billion to India

Trade Minister Budi Santoso released the export of 10 containers of palm derivative products in the form of oleochemicals in the form of split fatty acid and crude glycerine to India on Tuesday, December 17, 2024. The export release worth US$ 420 thousand or equivalent to IDR 6.75 billion was carried out in Deli Serdang Regency, North Sumatra.

The exported oleochemicals are produced by The Vegetable Vitamin Foods Company (PT VVF Indonesia), a subsidiary of the VVF Group. "The release of exports of palm derivative products is real evidence of the synergy between the government and the private sector in supporting national economic growth," said Budi in a written statement, Tuesday.

Trade Minister Budi said that the government guarantees the development of the palm oil industry to be more sustainable. He said that government support for the palm oil sector is provided through the issuance of policies and ease of market access for Indonesian palm oil in trade agreements.

"We hope that all parties can work together to encourage the development of this strategic commodity," he said.

The Minister of Trade added that in global trade, Indonesia ranks first as an exporter of split fatty acid products. Indonesia is said to control a market share of 40.97 percent.

Meanwhile, Indonesia's crude glycerine product is also said to be number one in the world with a market share of 32.02 percent. The export value of these two palm oil derivative products from January to September 2024 was recorded at US$ 1.05 million or an increase of 6.91 percent compared to the same period in 2023.

In the last five years, the export trend of Indonesia's split fatty acid and crude glycerine has been 28.38 percent. India itself is the main export destination for these two products.

In the industrial world, oleochemicals are applied to food such as cooking oil and margarine, then cosmetics, pharmaceuticals, energy, and chemicals. The Minister of Trade hopes that the release of exports of these oleochemical products will motivate other palm oil derivative product producers to increase exports.

He also hopes that PT VVF Indonesia can continue to commit to downstreaming in accordance with government policies. "This downstreaming will empower our economy, the MSME ecosystem with companies will have a strategic partnership pattern," he said.

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