The secretary of the North Sumatra chapter of the Association of Indonesian Businessmen (Apindo), Laksamana Adiyaksa, said here on Saturday those countries remained the province`s export main destinations because they had imported the most crude palm oil, rubber and aluminum from the region.
CPO demand from India and China kept increasing every year, he said. "The three countries are dominating North Sumatra`s exports following a global crisis triggered by US and European financial problems," he said.
Due to the crisis the province`s exports to other destinations including the US have dropped, he said.
He said although the three countries were all the main export destinations for North Sumatra exports Japan and India were the most advantageous for North Sumatra.
He said they were advantageous because North Sumatra`s dependence on the two countries was still small compared to its dependence on China from which the region`s imports have become bigger and bigger.
According to data from the provincial office of the National Statistics Agency, Laksamana, said the surplus of trade between North Sumatra and Japan and North Sumatra and India was quite big respectively reaching US$298.699 million and US$253.9995 million while the surplus in its trade with China reached only US$13.613 million.
The North Sumatra-China trade surplus was smaller because of the impact of the China-ASEAN Free Trade.
"Exporters may still increase their exports to Japan and India," he said.
The deputy chairman of the Indonesia Palm Oil Council, Derom Bangun, admitted CPO demand from India and China had been increasing every year until the first quarter of 2012.
It is estimated most exports of palm oil this year out of a total of 25.9 million tons of production will go to India and China, he said. ***2***
(T.SYS/B/H-YH/A/H-YH) 26-05-2012 21:20:55