Indonesia has a 130 million dollar trade contract with Egypt

Indonesia has a 130 million dollar trade contract with Egypt

Jakarta (ANTARA) -
Indonesia had a trade contract worth 130 million US dollars as a follow-up to the trade mission activities to Egypt that the Trade MInistry carried out in 2017.

The trade mission led by the Trade MInistry's Export Development Director General Arlinda has succeeded in facilitating trade contracts between the State-owned Plantation Holding Company of PTPN III (Persero) and PT Chita Agri Indonesia with one of the Egyptian palm oil processing and distribution companies Oleo Misr Co.

"Indonesia's palm oil exports to Egypt tend to increase from year to year. With the closeness of Indonesia-Egypt, we are optimistic we can work on the Egyptian market potential, "Arlinda said in a statement received in Jakarta on Thursday.

In addition, Egypt could also be used as a hub to market Indonesian palm oil products to Africa, she said.

In the trade contract, PTPN III (Persero)  will supply palm oil amounting to 10,000-16,000 metric tons (MT) per month with a value of US$100 million during 2019 while PT Chita Agri Indonesia will supply palm oil of 4,000-5,000 MT per month with a value of US$30 million.

If the estimated price of palm oil is US $ 5,000 per MT, then the potential transactions that will be generated by the two companies will reach US$ 130 million.

The trade contract agreement was signed through a memorandum of understanding (MoU) between an Indonesian company and an Egyptian company.

The signing was carried out during the Ministry of Trade's working meeting at Shangri La Hotel, Jakarta, on Tuesday (12/3).

The signing of the MoU was facilitated by the Ministry of Trade together with the Indonesian Palm Oil Board (DMSI).