Indonesia and Japan entered into a USD 138.2 million worth of palm kernel shells trade contract for Indonesia’s renewable energy requirements. The agreement was signed on September 28, 2022, during a meeting which was part of a series of trade missions referred to as the ‘Business Meetings of Indonesia Palm Kernel Shell’.
The Trade Ministry’s Director General of National Export Development, Didi Sumedi, states that Indonesia is one of the world’s top producers of palm kernel shells. In 2021, 87.1 percent of the commodities were exported to Japan. Japan also happens to be the largest trading partner and investor into Indonesia. It was, therefore, quite organic that both countries joined hands for this agreement, which would further strengthen their diplomatic relations.