REPUBLIKA.CO.ID, JAKARTA -- Representatives of the Indonesian Palm Oil Board (DMSI), Solvent Extractors' Association of India, and Solidaridad Network Asia Limited have signed a Memorandum of Understanding (MoU) on Monday to ensure sustainable palm oil production and trade in both countries. Coordinating Economic Minister Darmin Nasution said that the cooperation is expected to strengthen the sustainable trade of palm oil and its generated products in India and Indonesia.

India is one of the world's biggest users of palm oil products, with Indonesia's export value recorded at US$4.9 billion (US$1=Rp14,393). It equals to around 34.8 percent of Indonesia's total export value to the country.

Since India has become the most potential markets for Indonesia's palm oil products, besides China, a good communication needs to be maintained at the government and association levels, he stated.

The communication, he added, is partly aimed at wiping out the misperception of Indonesia's cheap palm oil. "The palm oil that we export to India is yet to be used optimally as there is a misperception that its quality is lower than those of other countries due to its cheap price. This is not true," Nasution remarked on the sideline of the signing ceremony.