"Fat products and animal/vegetable oils will remain the key export commodities, with India expected to become the main destination of the exports," executive secretary of the North Sumatra chapter of the Indonesian Exporters Association (GPEI) Sofyan Subang said here on Sunday.
Last year India imported US$1.455 billion worth of commodities from North Sumatra, accounting for 12.25 percent of the province`s overall exports valued at US$11.883 billion.
North Sumatra`s exports to India last year were dominated by crude palm oil (CPO).
In 2011, North Sumatra`s export of fat products and animal/vegetable oils to India reached US$4.762 billion, accounting for 40.08 percent of the province`s overall export last year.
North Sumatra`s fat and animal/vegetable oil exports to India this year are expected to increase from 2011 though they will not be as much as last year`s which rose 22.39 percent from 2010.
As a consequence of the European and US crises, demand for XPO and other products showed a downward trend, he said.
The other biggest contributors of North Sumatra`s foreign exchange earnings are Japan and China which are known as the market for aluminium and rubber, he said.
Deputy chief of the Indonesian Palm Oil Council Derom Bangun said India will remain the biggest market for Indonesian CPO.
Data show India`s demand for CPO this year was expected to reach 7.1 million tons. (*)
Editor: Kunto Wibisono
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