Press Release
Indonesian Palm Oil Association (IPOA)

EXPORTS DROP, STOCK SURGES

The performance of palm oil industry in May 2022 was affected by the export ban policy which lasted from 28 April to 23 May 2022. The export ban did not only affect the export performance, but also production.

Agronomically, the production of fresh fruit bunches (FFB) increased, but industrially the production of CPO was 18% lower than that in April. A number of companies started to limit their harvest and their purchase of FFB from the smallholders due to limited capacity of their storage tanks.

The exports in May 2022 only reached 678 thousand tons or a decrease of 68% from the exports in April at 2,089 thousand tons. The largest drop was seen in CPO and processed CPO. The export of oleochemical in May reached 318 thousand tons, relatively the same with the export in April at 319 thousand tons. Compared to the exports in April, Indonesia’s exports in May to China dropped 28%, to the USA dropped 32%, to Philippines dropped 52%, to Russia dropped 64%, to European Union dropped 64%, to Singapore dropped 67%, to India dropped 80%, to Pakistan dropped 90%, and to Bangladesh dropped 98%.

The price of CPO Cif Rotterdam in May dropped to US$ 1,714/ton, from US$ 1,719/ton in April. The domestic tender price also decreased from US$ 1,144.7 in April to US$ 936.0 in May. The decrease of CPO price had resulted in the decrease of FFB price received by the smallholders.

The domestic consumption of palm oil in May reached 1,610 thousand tons, which was lower (-0.8%) than the consumption in April. The consumption for foods rose from 812 thousand tons in April to 837 thousand tons in May (+3%), while consumption for biodiesel in May reached 590 thousand tons or 22% lower than that in April at 755 thousand tons.

The decrease of export performance had driven up the final stock from 6.1 million tons in April to 7.2 million tons in May.

Jakarta, 15 July 2022
Indonesian Palm Oil Association (IPOA)

For further information, please contact:

Mukti Sardjono
Executive Director GAPKI