Indonesia assures India: 'Nothing to worry' about palm oil supplies

Indonesia has assured India that palm oil supplies are secure, balancing domestic biofuel needs with exports. The country also invites Indian investment in its critical minerals sector, requiring local manufacturing for access to resources.

Indonesia Assures Uninterrupted Palm Oil Supply

Indonesia has assured India that there is "nothing to worry" about palm oil supplies, saying the two countries share a long-standing trade relationship and Jakarta remains committed to meeting export demand while balancing its domestic requirements under the B50 biofuel programme.

"There is nothing to worry about for India in terms of palm oil. I think we understand our cooperation for a long time," Satya Widya Yudha, Member, National Energy Council, Indonesia, told ANI in an exclusive interview on the sidelines of the Mining and Construction Equipment Summit organised by CII.

Yudha said Indonesia is working to increase palm oil productivity to meet both domestic and international demand. He said maintaining palm oil exports remains important as the commodity contributes to government revenue, while the country is also implementing its B50 fuel policy.

"We want to develop our productivity because we have to satisfy the domestic demand as well as the international request. We want to maintain our palm oil exports because this is part of our government revenue," he said, adding that "But on the other hand, we also have to satisfy the recent fuel policy, where we mix diesel and biofuel up to 50 per cent. That is the balance between satisfying the domestic demand and maintaining exports."

Eyes Deeper Cooperation in Critical Minerals

Indonesia is one of the world's largest producers and exporters of palm oil, while India is among its largest buyers. Yudha's comments highlighted Indonesia's commitment to maintaining supplies for its key trading partners even as it pursues domestic energy objectives through higher biofuel blending.

Beyond palm oil, Yudha said India and Indonesia have significant opportunities to deepen cooperation in the critical minerals sector, describing the two countries' strengths as complementary. He said India has technological capability and skilled human resources, while Indonesia possesses abundant mineral resources that can support industrial partnerships.

He said Indonesia's downstream industrialisation policy allows foreign investors to access critical minerals by establishing manufacturing facilities within the country. According to him, the policy is designed to create value addition in Indonesia while ensuring investors gain direct access to mineral resources.

"If a country wants access to our critical minerals, it is open as long as they build manufacturers in Indonesia. There will be two benefits. The country that invests gets direct access, while Indonesia benefits from local manufacturing, which helps improve our economic growth," Yudha said.

He added that several memoranda of understanding (MoUs), including those related to mining and critical minerals, have already been signed between India and Indonesia. The focus now, he said, should be on implementing those agreements to further strengthen bilateral economic ties.

Investment Remains Key Hurdle

Asked about the key challenge in expanding mining cooperation, Yudha said greater investment by Indian companies in Indonesia remains the primary hurdle.

"The challenge is very much on the ability of the Indian corporations to invest in Indonesia. We want to see it happen in the future," he said.

Yudha said stronger implementation of existing agreements and greater business-to-business engagement would help unlock the full potential of cooperation between India and Indonesia across mining, manufacturing and critical minerals. (ANI)

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