Press Release
Indonesian Palm Oil Association (IPOA)

Palm Oil Industry Performance in January 2023: Production Stagnant, Stock Drops

The year 2023 was started with the production of CPO in January at 3,892 thousand tons and PKO at 370 thousand tons, which was relatively the same with that of CPO production in January 2022 at 3,863 thousand tons and PKO at 365 thousand tons. Compared to the CPO production in December 2022 at 4,300 thousand tons, the production in January 2023 was lower by around 9.5% as a result of seasonal factor.

The local consumption of CPO+PKO in January 2023 reached 1,786 thousand tons, which was higher than the local consumption in January 2022 at 1,497 thousand tons, but lower than the local consumption in December 2022 at 1,936 thousand tons. The consumption for food industry in January 2023 amounted to 793 thousand tons compared to 901 thousand tons in December 2022.

The consumption for biodiesel in January 2023 dropped to 810 thousand tons, as compared to 850 thousand tons in December 2022. The consumption for oleo-chemical industry in January 2023 reached 183 thousand tons, which was relatively the same with that of December 2022 at 185 thousand tons.

Export volume in January 2023 reached 2,946 thousand tons, which was higher than that in December 2022 at 2,754 thousand tons.

Export to Egypt, Italy and Singapore in January 2023 increased respectively to 57.22 thousand tons, 114.28 thousand tons and 23.8 thousand tons, as compared to respectively 9.41 thousand tons, 72.58 thousand tons and 8.28 thousand tons in December 2022. Export to Bangladesh, Pakistan, Vietnam and Russia in January 2023 saw a decrease of more than 50% from that in December 2022.

The average price of CPO in January 2023 was US$1,024/ton CIF Rotterdam and the local price was US$754/ton FOB Dumai KPBN, while the price in December 2022 reached US$1,035/ton CIF Rotterdam and local price at US$ 755/ton FOB Dumai KPBN.

Despite increase in export volume, the export value of palm oil products in January 2023 reached US$2,605 million, which was lower than the export value in December 2022 at US$2,792 million.

With the composition of production, consumption, and export explained above, the stock of CPO+PKO by the end of January 2023 was around 3.1 million tons, which was lower than the stock in December 2022 at around 3.6 million tons and lower than the local consumption + export for one month. (*)

Jakarta, 27 March 2023
Indonesian Palm Oil Association (IPOA)

For further information, please contact:

Mukti Sardjono
Executive Director GAPKI