Indonesia to Increase Imports from IndiaThursday, January 30, 2020
Indonesia has agreed to immediately increase imports of Indian buffalo meat, sugar and auto parts after India boosted purchases of Indonesian palm oil amid a spat with rival supplier Malaysia, two Indian government sources with direct knowledge of the matter told Reuters. Indonesia and Malaysia account for 85% of the world’s palm oil output while India is the biggest buyer of edible oil. India has effectively halted imports of refined palm oil from Malaysia since early January in retaliation for Malaysia’s accusation that recent Indian policies discriminate against Muslims.
Indonesia, the world’s biggest palm oil producer and exporter, is expected to be the biggest beneficiary of India’s row with Malaysia. Indonesian crude palm oil has sold at a premium to Malaysian oil since India this month placed curbs on imports of refined palm oil. The trade ministers of India and Indonesia, which want to more than double their bilateral trade to $50 billion by 2025, met in Davos and agreed to fast-forward trade between them, one of the informed sources said.