Press Release
Indonesian Palm Oil Association (IPOA)

PRESS RELEASE

Production And Export Drop, Stock Rises

JAKARTA – The production of CPO in February  2024 was projected to reach 3,883 thousand tons or a decrease of 8.25% from 4,232 thousand tons in January 2024. Production of PKO was also projected to decrease by around 8.24% from 402 thousand tons in January 2024 to 369 thousand tons in February 2024. The production decrease was caused by, among others, the fewer working days in February as compared to those in January 2024.

Total domestic consumption in February also decreased by 4.02% as compared to that of January 2024, from 1,942 thousand tons to 1,864 thousand tons. The consumption in February for foods, oleochemical and biodiesel dropped respectively to 769 thousand tons, 175 thousand tons and 920 thousand tons from 800 thousand tons, 187 thousand tons and 957 thousand tons in January, or a decrease of each at 3.87%, 6.42% and 3.77%.

The consumption decrease was also caused by fewer calendar days in February than those of January.

Exports in February dropped by 26.48% from 2,810 thousand tons in January to 2,166 thousand tons in February. In terms of volume, the largest drop was seen in processed CPO from 1,933 thousand tons to 1,495 thousand tons (-438 thousand tons), followed by CPO from 367 thousand tons to 152 thousand tons (-215 thousand tons), and oleochemical from 393 thousand tons to 364 thousand tons (-29 thousand tons).

Export of processed PKO surged from 106 thousand tons to 129 thousand tons (+23 thousand tons). Due to big decrease in export volume, export value in February only reached US$1,808 million, which was a decrease from US$2,304 million in January, despite the price of CPO cif Rotterdam rose from US$958/ton to US$965/ton.

The largest decrease of export volume in February was seen to India at 287 thousand tons from 527 thousand tons to 240 thousand tons (-54.45%), followed by Pakistan at 97 thousand tons from 284 thousand tons to 187 thousand tons (-34.15%), to Africa at 91 thousand tons from 639 thousand tons to 548 thousand tons (-14.24%), to China at 49 thousand tons from 375 thousand tons to 326 thousand tons (-13.07%), and Bangladesh at 43 thousand tons from 77 thousand tons to 34 thousand tons (-55.84%), and EU at 27 thousand tons from 368 thousand tons to 341 thousand tons (-7.34%).

As of February 2024 year on year (YoY), the exports to Pakistan rose by 54.93% from 304 thousand tons to 471 thousand tons, to EU rose by 2.20% from 909 thousand tons to 929 thousand tons, while exports to China dropped 47.37% from 1,332 thousand tons to 701 thousand tons, to Bangladesh dropped by 42.78% from 194 thousand tons to 111 thousand tons, to Africa dropped 19.24% from 769 thousand tons to 621 thousand tons and to India decreased 17.45% from 928 thousand tons to 766 thousand tons.

With initial stock in early February at 3,032 thousand tons, production of CPO and PKO at 4,252 thousand tons, local consumption at 1,864 thousand tons and exports at 2,166 thousand tons, then final stock by the end of February  2024 was estimated at around 3,259 thousand tons or an increase of around 7.49% compared to the stock in January 2024. (*)

Jakarta, 30 April 2024
The Indonesian Palm Oil Association (GAPKI)

For further information, please contact:

Mukti Sardjono
Executive Director

GAPKI
Ph. 021-57943871
Fax. 021-57943872