Palm Oil as Prospective Export Commodity of Indonesia to Latin America

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Indonesia – Brazil: Palm Oil as Prospective Export Commodity of Indonesia to Latin America Rahmat Kurniawan Raka Tantra D. Pamungkas Clingendael, March 2014

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Presented during diplomatic course in 2014 at Clingendael: the Netherlands Institute of International Relations

Transcript of Palm Oil as Prospective Export Commodity of Indonesia to Latin America

Page 1: Palm Oil as Prospective Export Commodity of Indonesia to Latin America

Indonesia – Brazil: Palm Oil as Prospective Export Commodity of Indonesia to Latin America

Rahmat KurniawanRaka Tantra D. Pamungkas

Clingendael, March 2014

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Current Trade Relations

Indonesia 2012 Brazil

Import: US$ 1.97 billion

Export: US$ 1.48 billion DEFICIT

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Palm Oil?

• High Profit• “Biodiesel, biodiesel and biodiesel” –

Dorab Mistry• Environmental Critics

What is the best trade policy?

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Policy Options

1. Leverage to the production of palm oil with support as commodity-based exports

2. Palm oil plantation in responsible way by implementing sustainability and environmentally-friendly projects

3. Investment in technology, management, process and quality control of palm oil in Brazil

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Practical Implications

BILATERALRoundtable on Sustainable Palm Oil (RSPO)

Public – Private PartnershipEducation projects

MULTILATERALRegular Business Meetings

ASEAN – MERCOSUR Ministerial MeetingsASEAN Latin Business Forum

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Thank you