Shipment courier

Indonesia resumes palm oil shipment to Pakistan

ISLAMABAD: Indonesia has started shipping palm oil to Pakistan after the enactment of new export regulations, a statement said on Tuesday.

At the request of Pakistan, the Indonesian minister assured that after completing the necessary formalities, the first shipment of palm oil to Pakistan should leave within 24 hours.

The Minister further said that he would ensure that the first shipment leaves the Indonesian port the next day. The minister also assured that Pakistan will be the first country to which the goods will be exported, following the enactment of new export regulations.

READ MORE: Tarin’s orders release refunds to edible oil importers

On special instructions from Prime Minister Muhammad Shehbaz Sharif, Federal Minister of Industries and Production Makhdoom Syed Murtaza Mahmud led a delegation to Jakarta from June 12-14, 2022.

The objective of the visit was to minimize the impact of the recent decision by the Indonesian government to ban the export of palm oil on the Pakistani economy and to ensure the smooth flow of the goods to the Pakistani market, Pakistan is the third largest importer of Indonesian palm oil.

In 2021, Pakistan had imported 2.78 million tons of palm oil from Indonesia. During the visit, Minister Syed Murtaza Mahmud met with Indonesian Minister of Commerce Muhammad Lutfi, Minister of Industry Agus Gumiwang Kartasasmita, Coordinating Minister of Maritime Affairs and Investment Luhut Binsar Panjaitan, and Minister of industry, Agus Gumiwang Kartasasmita.

Representatives of the largest palm oil exporters to Pakistan and the president of the Indonesian Palm Oil Association also visited the minister.

In his interaction with the Indonesian Trade Minister, while emphasizing the strong historical and fraternal relations between Pakistan and Indonesia, Minister Mahmud underlined that Pakistan, being the third largest market for Indonesian palm oil, was strongly dependent on Indonesian palm oil.

He sensitized the Indonesian minister on the edible oil situation in Pakistan and mentioned that Indonesia’s decision to ban the export of palm oil for a month had hurt stocks of edible oil in Pakistan. . Even after the ban was lifted on May 23, 2022, exporters still face regulatory and logistical bottlenecks.

He urged his Indonesian interlocutor to facilitate the fastest possible resumption of palm oil shipments to Pakistan by removing bottlenecks.

In response, the Indonesian minister assured that Indonesia attaches great importance to its relations with Pakistan and is ready to ensure an uninterrupted flow of Indonesian palm oil to Pakistan.

He further said that after completing the necessary formalities, the first shipment of palm oil to Pakistan should leave within 24 hours.

The Minister further said that he would ensure that the first shipment leaves the Indonesian port the next day.

The minister also assured that Pakistan will be the first country to which the goods will be exported, following the enactment of new export regulations.

The two ministers discussed bilateral economic and trade relations. Minister Mahmud stressed the urgency of bridging the huge trade imbalance between the two countries.

The two ministers identified SMEs, agriculture, tourism, industrial joint ventures and other non-traditional sectors as possible areas of collaboration.

Minister Lutfi has agreed to travel to Pakistan to discuss these issues with his Pakistani counterpart. While meeting with Coordination Minister Luhut Binsar Panjaitan, who has been tasked by President Jokowi to coordinate the local distribution and export of palm oil, Minister Mahmad stressed the need to ensure uninterrupted delivery of goods to Pakistan.

Minister Luhut vowed to ensure palm oil delivery to Pakistan resumes at the earliest. He further stated that he ordered to ensure a steady flow to the goods in the future.

Minister Mahmud and his Indonesian counterpart, Agus Chumiwang Kartasasmita exchanged views on bilateral cooperation in industrial sectors, especially in the production of electric vehicles, mobile phones, electronics and agro-industrial industries.

The minister highlighted the investment potential in Pakistan in various sectors and the opportunities emerging from SEZa and invited Indonesian businessmen and entrepreneurs to invest in Pakistan.

The Minister also invited his Indonesian counterpart to visit Pakistan, which was accepted.

Minister Mahmud’s visit was timely to ensure the resumption of the export of Indonesian palm oil to Pakistan and to avoid a shortage of the commodity on the market.

Due to the Minister’s personal intervention, two palm oil shipments carrying 30,000 and 27,000 would depart for Pakistan today.

Another eight shipments are expected to reach Karachi before the end of June 2022 on June 14, 2022, says a press release received here today from Jakarta on June 14, 2022.