Writer: Felicia Go (IBM Student, Semester 5)

Editor: Felicia Budi Mulyono (IBM Student, Semester 5)

Trade Expo Indonesia 2023, held under the theme ‘Sustainable Trade for Global Economic Resilience’ at ICE (Indonesia Convention Exhibition) BSD City, Tangerang, from October 18 to 23, 2023, has garnered significant attention and success. Organized by the Ministry of Trade Republic Indonesia, this event featured both online and offline exhibitions, with over 1,200 Indonesian MSME (Micro, Small and Medium Enterprise) tenants participating. Impressively, the expo exceeded its initial target by generating a profit of IDR 401.5 trillion.

One of the key highlights of the expo was the focus on Crude Palm Oil (CPO) and its vital role in Indonesia’s economic growth. During the event, discussions with experts from APROBI (Asosiasi Produsen Biofuel Indonesia) and GAPKI (Gabungan Pengusaha Kelapa Sawit Indonesia) shed light on the significance of CPO. APROBI emphasized the government’s commitment to transitioning from fossil fuels to alternative fuels, with biodiesel derived from CPO at the forefront. The government’s promotion of B35 biodiesel, with plans to transition to B40, holds the potential to reduce diesel imports and bolster the domestic economy. With Indonesia being the world’s largest palm oil producer and total CPO exports reaching 20.86 million metric tons in May 2023, the inauguration of Indonesia’s CPO Exchange was announced, aiming to stimulate CPO transactions. APROBI also shared insights into oil palm plantation revitalization and palm oil productivity.

Furthermore, GAPKI, founded in 1981 as an organization for palm oil entrepreneurs, highlighted the levy duty for CPO exports at Tradexpo. The levy duty, updated every two weeks by the government and communicated in US Dollars per metric ton (MT), can significantly impact CPO prices. Given the bi-weekly update cycle, sellers and buyers must consider the potential implications of levy duty fluctuations. This nuanced understanding is crucial for stakeholders in the palm oil industry, which plays a pivotal role in Indonesia’s economy. Additionally, Tradexpo provided resources like the book ‘Myths vs Facts The Indonesia Palm Oil Industry in Social, Economic, and Environmental Global Issues, The Fourth Edition,’ addressing contentious topics surrounding the Indonesian CPO industry.

In summary, Trade Expo Indonesia 2023 was not only a valuable platform for showcasing the country’s MSMEs but also a hub for discussions on CPO’s role in Indonesia’s economic growth. The expo offered a unique opportunity to engage with experts and gather insights that hold significance not only for the industry but also for individuals like the author, a student specializing in International Business Management, who found Tradexpo to be an enriching experience in exploring the dynamics of Indonesian exports and imports within the MSME sector.