Indonesia – Brazil: Palm Oil as Prospective Export Commodity of Indonesia to Latin America

Rahmat KurniawanRaka Tantra D. Pamungkas

Clingendael, March 2014

Current Trade Relations

Indonesia 2012 Brazil

Import: US$ 1.97 billion

Export: US$ 1.48 billion DEFICIT

Palm Oil?

• High Profit• “Biodiesel, biodiesel and biodiesel” –

Dorab Mistry• Environmental Critics

What is the best trade policy?

Policy Options

1. Leverage to the production of palm oil with support as commodity-based exports

2. Palm oil plantation in responsible way by implementing sustainability and environmentally-friendly projects

3. Investment in technology, management, process and quality control of palm oil in Brazil

Practical Implications

BILATERALRoundtable on Sustainable Palm Oil (RSPO)

Public – Private PartnershipEducation projects

MULTILATERALRegular Business Meetings

ASEAN – MERCOSUR Ministerial MeetingsASEAN Latin Business Forum

Thank you