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China has asked Indonesia to guarantee that Beijing receives sufficient supplies of crude palm oil and other commodities amid rising demand, according to Indonesian Deputy Agriculture Minister Sudaryono.
China recently sent its Vice Minister of Agriculture and Rural Affairs, Ma Youxiang, to convey the request.
Speaking to reporters in Jakarta on Tuesday, Sudaryono said: "China has asked us to guarantee its supply of crude palm oil. They also made a similar request regarding natural rubber and edible bird's nests."
The government reported that Indonesia posted a $1.77 billion surplus in agricultural trade with China in 2024. Indonesia's largest export was palm oil, worth $2.72 billion, followed by edible bird's nests ($428 million), rubber ($363 million), coconut ($270 million) and cocoa ($218 million).
"China is seeking a long-term guarantee for crude palm oil supplies. They are seeing rising demand for palm oil at home, while Indonesia remains the world's largest producer," Sudaryono said.
The deputy minister added that Indonesia will also work to boost palm oil productivity to meet demand from its biodiesel programme. Indonesia is currently implementing its B40 programme, which requires diesel fuel to be blended with 40% palm oil, with the percentage referring to the palm oil component's share of the mix. Indonesia plans to make the B50 blend mandatory next year.
Sudaryono concluded: "We are confirming that palm oil productivity continues to be boosted to meet domestic demand, including supporting the B50 energy programme, while ensuring export supplies remain secure."
Source: Al Mal Forum