INDONESIA'S CPO EXPORTS TO EGYPT DROPPED

Cairo, 26 Dzulqa’dah 1435/21 September 2014 (MINA) – The export value of Indonesian crude palm oil (CPO) exports to Egypt dropped drastically compared to last year.

According to data from Trade Affairs of the Republic of Indonesia (Embassy) in Cairo that processed data from the Central Statistics of Egypt, CAPMAS, the total value of CPO exports for January to May 2014 period recorded US$3.188 million compared to the same period last year that reached $214.53 million or tumbled 98, 51 percent, Antara News quoted by Mi’raj Islamic News Agency (MINA) as reporting, Saturday.

Drastic decline in CPO exports to Egypt was not only the case for Indonesia, but also for Malaysia, which is the country’s main competitor for markets in the land of the pyramids.

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Malaysian CPO exports to Egypt in January-April 2014 only reached $ 1.4 million compared to the same period the previous year to reach 67 million dollars, or 97.81 percent decline.

Head of Economic Section and Trade Attache of the Indonesia Embassy in Cairo, Nia Miller Lauti Sutedja, told ANTARA Friday there were some of the factors that caused a decrease in the value of exports of CPO

First, the increase in CPO exports tax from 10.5 to 12 percent by the Indonesian government has been implemented.

“Raising the duty because the government wants to build a future downstream palm oil industry, so the palm oil exports will have added value,” said the woman diplomat.

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Secondly, the price of CPO in the world level dropped due to a declining demand.

Third, the decline in demand due to the plentiful supply of vegetable oil in the consuming countries.

Nia Miller pointed out, a source of vegetable oil in Egypt is not only a CPO, but also, among others, rapeseed, sunflower, peanut oil and corn oil.

Some other commodities also suffered declines such as a thread from 15.23 million dollars in January-June 2014 to 10.76 million in the same period last year, down 29.33 percent.

Coffee from $15.35 million to $ 13.15 million or 14.32 percent decline.

Nevertheless, some other commodities rised, as the paper from $9.83 million dollars in January-May 2013 to 12.25 million in the same period, an increase of 24.62 percent.

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While total non-oil trade between Indonesia and Egypt in January-June 2014 recorded a stagnant at $ 670.23 million compared to the same period the previous year amounted to 669.62 million dollars.

The balance of trade between the two countries from year to year to remain in surplus for Indonesia.

For example, Indonesia’s exports to Egypt in January-June 2014 amounted to 595.059 million dollars, while imports from Egypt in the same period only recorded 75.177 million dollars.

The trade balance between Indonesia and Egypt in the past five years fluctuated, which in 2013 recorded 1.228 billion dollars, 1.236 billion (2012), 1.588 billion (2011), 1.070 billion (2010), and $802.564 million (2009).(T/P008/P3)

Mi’raj Isamic News Agency (MINA)