Editor’s note
- Indonesia closes palm oil export routes, could the world end?
- Indonesia controls 60 percent of the global palm oil market
- Pressure on palm oil
Indonesia closes palm oil export routes, could the world end?
If Indonesia closes the palm oil export routes, the world could end.
“Even if Iran closes the Strait of Hormuz, Iran will only control 20% of global oil production. But Indonesia ranks number one as the world’s largest producer and exporter of palm oil,” said Minister of Agriculture Andi Amran Sulaiman.
Indonesia controls 60 percent of the global palm oil market
According to him, Indonesia’s market share in palm oil amounts to 58 to 60%. In fact, Indonesia controls 48.8 to 50% of total global palm oil exports. The value of exports reaches a very significant amount, namely 35 to 40 billion dollars.
Indonesia’s dominance in palm oil is driven not only by its vast land area but also by the government’s focus on processing crude oil into finished products, particularly B40 or B50 biodiesel.
“So you could say that the world is dependent on Indonesian palm oil. This shows that Indonesia can exert pressure on other countries that want to get involved in palm oil,” says Amran.
Pressure on palm oil
But regarding the Indonesian ship detained in the Strait of Hormuz, Indonesia will naturally not be able to exert pressure using palm oil.
This is, after all, a diplomatic matter, and Indonesia previously detained an Iranian ship, the Arman 114, which was even on the verge of being auctioned off.
It therefore all depends on the government’s lobby for a mutually beneficial solution. ***aitik
