Domestic Market & Eksport Continually Strengthening

Press Release
Indonesian Palm Oil Association (IPOA)

DOMESTIC MARKET AND EXPORTS CONTINUALLY STRENGTHENING

The exports of palm oil products in October 2020 reached 3.028 million tons, an increase of 9.5 percent compared to that in September 2020 and in terms of value surged by 10.7 percent to US$2.073 billion from US$1.872 billion in September 2020. The high increase was seen in products of processed palm oil that reached 1.956 million tons from 1.766 million tons in September (+10,7%) and the oleochemical products that reached 408 thousand tons from 313 thousand tons in September (+30,3%).

Year on year (YoY) as of October 2020, the export volume in 2020 was still lower (-10,8%) from that in 2019, but in terms of value was higher (14,8%) due to the monthly  average price until October 2020 that reached US$676 per ton compared to US$535/ton (cif Rotterdam) in 2019.

Based on country of destination, the highest increase of export was seen to India, where the export rose from 351.95 thousand tons in September 2020 to 481.69 thousand tons in October 2020 (+36,86%), followed by the  USA that saw an increase of 44.31 thousand tons to 150.63 thousand tons (41.68%). The export to EU increased by 38.09 thousand tons (+10.57%), to Pakistan rose by 33.68 thousand tons (+19.35%), to the Middle East by 22.91 thousand tons (+14.53), to China surged by 4.02 thousand tons (+0,62%), but to Bangladesh dropped by 1.13 thousand tons (-1,31%), while to Africa decreased by 51.17 thousand tons (-17,95%).

Production in October 2020 reached 4.768 million tons, which was higher (0.9%) from production in September 2020. Year on year (YoY) until October 2020, production was lower (-2.3%) from that in 2019. Despite negative, YoY deficit until October 2020 had shown consistent improvement.

Total domestic consumption reached 1.476 million tons, an increase of 2.0 percent from the consumption in September 2020. The consumption for food industries increased 3.7 percent to 692 thousand tons. The consumption for biodiesel in October 2020 reached 599 thousand tons, which was lower (-4,9%) than that in September 2020, possibly due to the decrease of people mobility as a result of the outbreak of Covid-19 pandemic that is still raging.

The food  consumption that reached 667 thousand tons in October has been consistently rising since June 2020, although not yet reaching the level before the outbreak of the pandemic when it was 786 thousand tons in February 2020. Oleochemical consumption in October reached 181 thousand tons, which was 22.5 percent higher than that in September 2020.

The rising trend of exports, domestic consumption, and price will increase the contribution of the palm oil industry to the national economy and the income of producing companies.

Indonesian Palm Oil Association (IPOA)

For further information, please contact:

Mukti Sardjono
Executive Director GAPKI
Phone/Fax:
021-57943871
Fax. 021-57943872

Featured image via sawitplus.co

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