Indonesian Palm Oil Industry Continually Showing Positive Trend

Press Release
Indonesian Palm Oil Association (IPOA)

INDONESIAN PALM OIL INDUSTRY CONTINUALLY SHOWING POSITIVE TREND

The production of Indonesian palm oil has been continually seeing a recovery as reflected by the consistent increase during the last three months.  In July 2020, crude palm oil (CPO) production reached 3.85 million tons, which then rose to 4.38 million tons in August 2020  and 4.73 million tons in September 2020. Year on Year (YoY) as of September 2020 total production was still lower by -4.7 percent as compared to the same period in 2019.

The palm oil export value in September 2020 reached US$1,871 million, which increased by 10% if compared to the export value in August 2020 at US$1,697 million.  As of September 2020,  the export value of palm oil year on year (YoY) reached US$15,498 million, which was higher than that of 2019 at US$14,458 million.  In terms of volume, the palm oil exports in September 2020 reached 2,764 thousand tons, which increased by 81 thousand tons (+3%) from that in August 2020 at 2,683 thousand tons.

Export to China in September 2020 reached 645 thousand tons, which increased by 618 thousand tons in August 2020.  Export to India in September 2020 was 351 thousand tons, which was the same with that in August 2020, while the export to European Union (EU) and Pakistan in September 2020 was lower than that in August 2020. Export increase was seen to Brazil, Malaysia, Russia and Africa.  Export to Brazil  increased by 44 thousand tons, to Malaysia increased by 39 thousand tons, and to Russia rose by 37 thousand tons.  The increase of exports to Africa reached 39 thousand tons. Actually, exports to most of country destinations in Africa saw a decrease, but a high increase was seen to Kenya  (+61 thousand tons) and South Africa (+33 thousand tons).

Domestic consumption for foods during the last four months consistently increased and in September 2020 reached 667 thousand tons.  Year on year (YoY) as of September 2020, the consumption for foods was lower than that of last year (-15.8%).  The increase of consumption for oleochemical tends to be stagnant.  The consumption for oleochemical in September 2020 reached 151 thousand tons, which was the same with that in August 2020 and only 3 thousand tons higher than that in July 2020.  The consumption for oleochemical year on year (YoY) as of September 2020 was higher (+49%) than that in 2019.  The consumption of palm oil for biodiesel in September 2020 reached 630 thousand tons, which increased by 54 thousand tons from that in August 2020.  The consumption for biodiesel year on year (YoY) increased by 27.2% from that in 2019.

The increase of local consumption and exports are expected to be able to absorb the production increase.

Jakarta, 12 November 2020
The Indonesian Palm Oil Association (Gapki)

For further information, please contact:

Ir. Mukti Sardjono, M.Sc
Direktur Eksekutif GAPKI
Ph. 021-57943871, Fax. 021-57943872

Featured image via wartaekonomi.co.id

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