The plan to reduce palm oil import fee in India is a good news for Indonesia to increase the exports to the Bollywood country.
But the government of Indonesia should be more intense to run dialogue with the government of India. Besides Malaysia has got the decreasing import fee.
As quoted from Bloomberg, Malaysia would get the reduction of import fee in January 2019 from 44% to be 40%, while the fee for palm oil processed products gets cheaper too, from 54% to be 45%.
As quoted from Kontan, palm oil from Indonesia would be decreasing through the import fee reduction in the AIFTA scheme on the processed palm oil products, from 54% to be 50%. Head of Badan Pengkajian dan Pengembangan Perdagangan (BP3) Ministry of Trade, Kasan said, the import fee in Malaysia and Indonesia would have the same numbers to be 45% on 31 December 2019.
In the previous, the Government of Indonesia through Coordinator Ministry in Economy, and Indonesian Palm Oil Board (IPOB) did manuver to balance the reduction of import free just like Malaysia did. It was done by making billateral cooperation with The Solvent Extractors ‘Association of India (SEA) and Solidaridad.
From what InfoSAWIT got, in the first meeting, there were three agreements, such as, the first, do sustainable palm oil promotion in India through the campaigns about the standards in ISPO and IPOS.
The second, make Indonesia – Palm Oil Cooperation Committee of India to facilitate both countries to increase the cooperation in trade. The third, increase the smallholders’ participation to implement sustainable palm oil practices. (ISPO dan IPOS).
The agreement was directly attended by the committees led by Chairman of IPOB, Derom Bangun, President of SEA, Atul Chaturvedi, and Kulbir Mehta of Solidaridad.