China highly dependent on Indonesian CPO

China highly dependent on Indonesian CPO

Photo illustration of farmers cultivate oil palm fruit. (ANTARA/Syifa Yulinnas)

Indonesia is very important for China since 70 percent of the CPO it needs is imported from Indonesia."
Kuala Pembuang, Central Kalimantan (ANTARA News) - China is highly dependent on Indonesian crude palm oil (CPO) to meet its need for the commodity, an executive has said.

"Indonesia is very important for China since 70 percent of the CPO it needs is imported from Indonesia," Julong China Vice President Xu Yibing stated during a visit to Pembuang Hulu, Seruyan district, Central Kalimantan province, on Thursday.

Yibing informed that the five biggest Chinese importers of CPO are China National Cereal, Oils & Foodstuffs Holding Limited (Cofco), Tianjin Julong Group, Sinograin Oil Corporation, Yinzheng Fangshun Oils & Grains Industry Co ltd, and Wilmar Kerry Investment.

In all, the five companies import two million tons of CPO annually. Eighty percent of the CPO is imported from Indonesia, he pointed out.

Chinas Julong Group, which is one of the biggest CPO importers in China, has opened oil palm plantations in West Kalimantan and Sumatra.

As one of the biggest CPO-importing countries, China pays keen attention to the development of oil palm plantations in Indonesia. For its part, a delegation of Chinese CPO importers led by Yibing visited Seruyan to learn how oil palm plantations in Indonesia were being managed.

"China and Indonesia are facing similar issues in CPO production and environmental sphere. We hope we can learn much from Indonesia about how to manage oil palm plantations and can progress together," he noted.

Meanwhile, Seruyan district head Sudarsono underlined that the high demand for CPO in China has opened up an opportunity for oil palm growers in the district.

(Reported by Fahrian Adriannoor/Uu.S012/INE/KR-BSR/A014)