GAPKI (20/05/2025) - JAKARTA – The Agriculture Ministry (Kementan) said the government has opened an option of new export markets for palm oil as a way to mitigate the potential impacts of India – Pakistan conflict.

Palm Oil and Various Palms Director at Kementan’s Plantation Director General, Ardi Praptono said in Jakarta on Wednesday (14/05/2025) that the new potential markets include countries in Africa, such as Egypt and South Africa, and countries in East Asia. “We’ll open new markets for palm oil, especially in Africa and East Asia. Drawing from our previous experiences, especially from the high tariff imposed by USA, we’ll focus on opening new markets,” said Ardi.

Ardi further said that Indonesia as the world’s largest producer of palm oil should be able to adapt to new conditions and expand market beyond existing ones. “This should become a special attention of all stakeholders, regardless of any significant impacts caused by the conflict to our palm oil exports,” he said.

“As far as we know, there is no yet impacts caused by the conflict of India-Pakistan. But we’re trying to mitigate the potential impacts from the high tariff imposed by USA,” said Ardi.

“But if we consider the current trend, we see that it is potential to affect our exports. So, it’s necessary to pursue efforts of mitigating impacts. That’s why, I think, we need to penetrate new markets,” he said.

Meanwhile, ANI reported on Tuesday (13/05/2025) that the border location between India and Pakistan, where the shooting and drone interception took place several days ago, was in calm situation.

On Saturday (10/05/2025), India and Pakistan had agreed to stop shooting and military actions on land, air and sea starting from 17.00 local time (18.30 WIB).

Potential market disruption

Previously, the Palm Oil Agribusiness Strategic Policy Institute’s (PASPI) Executive Director Tungkot Sipayung said that if the conflict between India and Pakistan prolonged then it will affect the trade between Indonesia and the two countries and potentially their neighbouring countries. “India and Pakistan are major importers of Indonesia’s palm oil. Both countries import 6 – 7 million tons of palm oil from Indonesia or around 25 percent of the country’s total exports of palm oil and derivative products.

Tungkot said that the two countries also stand as the gateway to neighbouring countries, such as Bangladesh, Afghanistan, Nepal, and others. “Geopolitics conditions in a number of regions across the globe, including in the South Asian region, have threatened to disrupt the supply chains of goods in the global market, including palm oil,” said Tungkot.

He said that the prolonged conflicts are also potential to cause price drop. “But overall, having a total population of almost two billion, South Asia is a very promising market for Indonesian palm oil. Indonesia should be more intensive in strengthening trade relations with the region. Rather than serving Europe and USA that are too demanding, it’s better to establish trade relations with other fellow Asian countries,” he said. (*)

Read more at https://gapki.id/en/news/2025/05/14/govt-regardless-of-conflict-we-should-open-new-palm-markets/