JAKARTA – The Indonesian Palm Oil Association (Gapki) predicted that the Covid-19 pandemic and its impacts will not yet stop in 2021.
But Gapki predicted that due to better maintenance of plantations, supportive weather, and more attractive prices, Indonesia’s production of palm oil will significantly increase this year (2021) to 49 million tons of crude palm oil (CPO) and 4.65 million tons of palm kernel oil (PKO).
As the government is committed to continuing the B30 program, the biodiesel consumption is expected to reach 9.2 million kiloliters (Aprobi 2021), which is equivalent to 8.0 million tons of CPO.
The consumption of palm oil for oleochemical in 2021 is predicted to reach around 2.0 million tons for domestic market and around 4.5 million tons for exports. (Apolin 2021).
The global demand for palm oil this year will really depend on the success of Covid-19 vaccination. “The success of the vaccination program will increase the economic activities, which will then push up the consumption for vegetable oils, including palm oil.”
“Besides, many countries will have to relax social restrictions due to economic reason.”
“Indonesia’s exports of palm oil products are predicted to increase in 2021, in terms of volume and value,” Gapki Chairman Joko Supriyono said during a virtual press conference last week.
But there are a number of factors expected to disrupt the demand. The factors include the resurgence of Covid-19 in China and other countries, and the outbreak of African Swine Fever which has disrupted the demand for oilseed and oilmeal that will then disturb the demand for vegetable oils, including palm oil.
“In addition to that, there are various important issues that will also become the focus of Gapki’s activities in 2021, such as the application and monitoring of the implementation of the omnibus law on job creation (UUCK), and all of its implementing regulations.”
“The improvement of sustainability implementation, through the acceleration of ISPO certification for Gapki members, and strengthening of partnerships to accelerate the replanting program for smallholders (PSR),” said Joko. (*)
Source: TROPIS.CO | Featured image via cibuacity.blogspot.com