China Premier Li says open to increasing Indonesia palm oil import quota

Reuters  |  BOGOR, Indonesia 

By Agustinus Da Costa

Li's comment came at a joint conference with Widodo before the Chinese travelled to to visit the The two countries also signed a number of memoranda of understanding, including on the construction of dams in Indonesia's and province on Borneo.

currently consumes 5 million tonnes of palm oil, said Li, scheduled to fly on Tuesday from to for a summit with Japan's and South Korea's Moon Jae-in. Indonesia, the world's biggest producer, exported 3.73 million tonnes of to last year, a leading destinations after and the

Li said boosting was aimed at helping smallholder farmers in Indonesia, and said China also planned to increase coffee and tropical fruit imports.

"Indonesian have an advantage, we do not have many of them in China," Li told reporters.

According to data from Indonesia's investment agency, China was the third-largest foreign investor in last year, contributing around 10 percent of total foreign direct investment.

"We discussed an increase in economic cooperation including trade," said Widodo, speaking at the conference.

"As a country with a 1.37 billion population, China is a big market for I stressed about exports increasing from Indonesia to China." said Widodo.

Indonesia's have come under pressure in where lawmakers have approved draft measures on power reform that include plans to ban the use of palm oil in biodiesel from 2021, even though the E.U. recently removed anti-dumping duties for imports of biodiesel containing palm oil for some Indonesian producers.

China sees Indonesia as a key partner in its Belt and Road initiative that aims to bolster a sprawling network of land and sea links with Southeast Asia, Central Asia, the Middle East, and

Indonesia said last week it was seeking ways to accelerate a $5 billion high-speed rail project being built by a consortium of local and Chinese state firms, which is facing obstacles from land ownership issues.

(Reporting by Agustinus Da Costa and Bernadette Christina Munthe; Writing by Fransiska Nangoy; Editing by and Kenneth Maxwell)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 07 2018. 14:29 IST