JAKARTA — The Indonesian Palm Oil Association (GAPKI) said that the realization of program to replant smallholders’ oil palm plantations has not yet reached the maximum level. Since its implementation in 2016 until 2021, only around 120,000 hectares of smallholders’ plantations are replanted.
GAPKI Chairman Joko Supriyono said that the low realization of the replanting program was caused by the fact that smallholders are facing the complexity of legal process to join the program.
“The replanting program has been implemented since 2016. But until 2021, only around 120,000 hectares are already replanted. These plantations will start producing in 2023-2025,” Joko told bisnis.com through WhatsApp message on Wednesday, 12 January 2022.
Joko added that most of the smallholders’ plantation areas overlap with the forest areas. “The fact that most of smallholders’ plantations overlap with the forests has caused the low realization of the replanting program,” he said.
Based on data from the agriculture ministry’s plantations directorate general, as of 04 January 2021, the realization of the replanting program only reached 256,893 hectares since 2016. It is much lower than the target set by the government at 745,780 hectares during the last six years.
On palm oil production, GAPKI projected that the production of crude palm oil (CPO) this year will reach 48 million tons or an increase of 2.70 percent if compared to that of 2021. “It was mainly due to the weather factor. The weather during 2021 was relatively wet, and even early in that year it was accompanied by La Nina. It seems that factor had disrupted the flowering process of oil palm trees,” he said.
GAPKI projected that the export value of CPO and derivative products will reach US$35 billion during this year. GAPKI also predicted that the rising trend of palm oil price will continue this year. The price is predicted to stay at around US$1,300 per ton, and the stocks that can be exported in November and December this year could reach 6.4 million tons.
In October 2021 the price of CPO (CIF Rotterdam) reached US$1,368 per ton, which was higher than that of September 2021 at US$1,235 per ton, and August 2021 at US$1,236 per ton.
The export value of palm oil products in October 2021 reached US$3.67 billion, with export volume at 3.21 million tons or an increase of 230,000 tons compared to the export volume in September 2021. The largest increase was seen in the processed palm oil products at 298,000 tons or 13.5 percent higher than that of the previous month, while the CPO export dropped by 7.0 percent to 147,000 tons. (*)
Source: bisnis.com
