Press Release
Indonesian Palm Oil Association (IPOA)

EXPORTS RISE, BUT STOCK STILL HIGH

The government’s decision to lift the palm oil export ban since 23 May 2022 has increased the export in June to 2,334 thousand tons or 3.4 times higher than that in May at 678 thousand tons. The largest export increase in June was seen to Pakistan from 281 thousand tons to 295.0 thousand tons, to EU27 from 177.8 thousand tons to 296.7 thousand tons, to China from 208.5 thousand tons to 416.2 thousand tons, to India from 154.5 thousand tons to 212.3 thousand tons and to Africa from 156.6 thousand tons to 199.4 thousand tons.

The local consumption in June saw an increase of 225 thousand tons to 1,835 thousand tons. The largest increase in the domestic consumption was seen for the production of biodiesel by 130 thousand tons to 720 thousand tons, followed by the consumption for foods which rose by 97 thousand tons to 934 thousand tons. CPO production in June rose by around 6% to 3,297 thousand tons, while PKO production increased to 322 thousand tons.

The increase of CPO production was in line with the production of fresh fruit bunches (FFB) which is seeing a rising trend, but the FFB production was not yet fully 100% processed in the palm oil mills as the level of palm oil stock in their storage tanks was still high.
With the production, consumption, and export mentioned above, then final stock in June 2022 was estimated at 6,683 thousand tons, which was lower than the final stock at the end of May 2022 at 7,233 thousand tons.

Meanwhile, at global market the price of CPO Cif Rotterdam fell from US$ 1,714 in May to US$ 1,573/ton in June (Cif Rotterdam). So did the average price of CPO (KPBN auction) in June from around Rp 13,000/kg in early June to around Rp 8,500/kg by the end of June. The price condition indicated that the export in June had not yet significantly reduced the high domestic stock, so that it could not yet push up the price of CPO at domestic market.

Jakarta, 11 August 2022
Indonesian Palm Oil Association (IPOA)

For further information, please contact:

Mukti Sardjono
Executive Director GAPKI