Trade tensions between the United States and China are perceived to present new opportunities for the Indonesian palm oil industry. Djap Tet Fa, the President Director of PT Astra Agro Lestari Tbk, noted that the ongoing tariff conflict between these two nations has the potential to elevate demand for Indonesian palm oil, particularly from the Chinese market. While it is acknowledged that trade disputes can exert indirect effects, such as contributing to global inflation and decelerating economic growth, Tetfa maintains that the palm oil sector is positioned relatively securely. “China will undoubtedly face difficulties in importing soybeans from the United States due to the increased tariffs. This scenario presents an opportunity for palm oil to emerge as a primary alternative,” stated Djap Tet Fa during the Public Expose of PT Astra Agro Lestari on April 28, 2025.
According to Tetfa, Indonesia, as a prominent supplier of palm oil to China, is well-equipped to address the supply gap arising from surging soybean prices in the United States. Furthermore, although Indonesia’s palm oil exports to the United States amount to approximately two million tonnes annually, the direct ramifications of a decline in exports to the US are deemed negligible. “Since the United States is not a primary destination for our exports, I do not anticipate significant effects,” he added.
To counter potential reductions in global purchasing power, Astra Agro has devised a market diversification strategy targeting alternative countries such as India, South Korea, and Bangladesh, ensuring the stability of its exports. Djap Tet Fa expressed hope that the escalation of the tariff conflict does not persist, thereby facilitating stable global economic conditions. “Nevertheless, the company remains optimistic that, with robust demand and adaptive strategies, the Indonesian palm oil industry will not only endure but also thrive in the face of global uncertainties,” he concluded.
Source: Warta Ekonomi
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