Indonesian palm oil penetrates Central Asia

This article has been translated by PwC Indonesia as part of our Plantation News Highlights service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily - Minyak sawit RI tembus Asia Tengah

19 September 2023

Jakarta - The Indonesian Palm Oil Association (IPOA) is optimistic about the Indonesian palm oil industry’s market expansion to Central Asia through Uzbekistan. This follows the signing of the bilateral cooperation agreement between Indonesia and Uzbekistan in the palm oil sector. Based on the report from the Embassy of the Republic of Indonesia in Tashkent, Uzbekistan requires around 60-70 thousand tonnes of crude palm oil (CPO) annually.

According to IPOA Head Eddy Martono, the bilateral cooperation agreement that has been agreed upon by Indonesia and Uzbekistan in the palm oil sector can become Indonesia’s palm oil industry strategy to penetrate new markets in Central Asia. Uzbekistan is an ideal business partner for Indonesia and the second largest trading partner in Central Asia after Kazakhstan. “As one of the leading producers and consumers of vegetable oil in Central Asia, Uzbekistan has the potential to be the regional centre of vegetable oil production and management, which includes palm oil,” Eddy explained in his statement as quoted on Monday (18/9/2023).

Eddy made the statement when he signed the memorandum of understanding (MoU) between IPOA and the Association of Fat and Oil Enterprises of the Republic of Uzbekistan (Uzyogmoysanoat) on the bilateral cooperation in the palm oil sector in Tashkent, Uzbekistan on Thursday (14/9/2023). The MoU signing was directly witnessed by Indonesia’s Ambassador to Uzbekistan Sunaryo Kartadinata, which coincided with Indonesia’s participation in Asia Grains and Oils 2023 conference. “The geographic location of Uzbekistan is strategic in the middle of Central Asia. It is expected to be a connector to surrounding countries,” Eddy explained.

Indonesia is the largest palm oil producer and exporter in the world. More than 150 countries import palm oil from Indonesia, including countries in Central Asia even though the amount is still low. One of the trade barriers to enter the Central Asia market is logistics. “We are enthusiastic about the inauguration of the partnership, which also introduces the sustainability aspect of Indonesia’s palm oil industry through Indonesia Sustainable Palm Oil (ISPO) that is a requirement for oil palm plantation business players and opens export and national palm oil investment opportunities in Uzbekistan and other non-traditional countries in Central Asia,” Eddy said.

Ambassador Sunaryo explained that Indonesia was one of the largest palm oil producers in the world. The palm oil sector significantly contributes to the economic development in Indonesia. “The Indonesia-Uzbekistan partnership marks a mutual commitment to advance the palm oil sector in both countries. Indonesia’s participation in Asia Grains and Oils 2023 is a crucial opportunity to carry out promotions and positive campaigns on palm oil in Central Asia,” he affirmed.