JAKARTA – During 2022, Indonesia’s palm oil industry has seen a very dynamic wave of ups and downs and centered on the public spotlight. The price increase, domestic cooking oil shortage, Russia-Ukraine war and Indonesia’s export ban were among the main issues that have strongly affected the industry during this year.
After recovering from the Covid-19 pandemic, the global economy is now facing a possibility of economic recession, and even a number of countries have been entering the recession. Some other countries are facing a threat of starvation, which have prompted the United Nations (UN) to pay special attention to the global energy and food crisis.
The Indonesian Palm Oil Conference’s (IPOC) Organizing Committee Chairperson Mona Surya said on Wednesday that the annual event of IPOC, which is organized by the Indonesian Palm Oil Association (GAPKI), will discuss the current global geo-politic and economic condition facing the palm oil industry. IPOC will also cover the latest development of palm oil industry in Indonesia and the global market, and analyze the price trend of palm oil next year (2023).
The 18th Indonesian Palm Oil Conference and 2023 Price Outlook will be held on 2 – 4 November 2022 in Bali International Convention Center, Westin Resort, Nusadua Bali, with the theme “New Landsacpe in World Vegetable Oils: Opportunities and Challenges for Palm Oil Industries.”
Mona pointed out that the palm oil has become one of the most important vegetable oils in the world, which provides more than 30 percent of the total global supply of vegetable oils. The palm oil demand for global foods and biofuel has been continually increasing every year.
“Indonesia as the world’s largest producer of palm oil plays a very significant role at the global market, drawing special attention to its palm oil market. Based on data from Oil World, in 2021 Indonesia supplied more than 29.7 million tons of palm oil to the global market, which was equivalent to 55% of the total global demand of palm oil at 53.5 million tons,” she said during a press conference on the 18th IPOC, which was attended by InfoSAWIT on Wednesday.
GAPKI Chairman Joko Supriyono said during the press conference that the Russia – Ukraine war has impacted the global geo-politic condition, disrupting the global supply of palm oil and crude oil. The two countries are the world’s largest producers of sunflower oil, supplying more than 60 percent of the global supply of sunflower.
“The disruption of sunflower supply has created an opportunity for palm oil at the global market. The disrupted supply of Russian crude oil has also created a big opportunity for palm oil-based biodiesel to fill the shortage at the global market,” he said.
Joko further said that the palm oil industry has been heavily affected by all policies set by the government. “We can see that its policy of palm oil export ban had created a vast domino effect across Indonesia’s palm oil industry. So, it is very important that understanding on new policies will help all in designing business strategies in the future,” he said. (*)
Source: InfoSAWIT
