JAKARTA – The Indonesian Palm Oil Association (Gapki) said that the domestic consumption of crude palm oil  (CPO) during 2020 increased by 3.6 percent from the level in 2019.

Gapki Chairman Joko Supriyono said that last year the CPO consumption reached 17.35 million tons, which was higher than the consumption in 2019 at 16.75 million tons. The CPO consumption increase was mainly supported by the increase of biodiesel production from 5.8 million tons in 2019 to 7.2 million tons in 2020. Besides, the increase of oleochemical production had also increased the consumption from 89 thousand tons to 197 thousand tons.

The increase of biodiesel production was mainly supported by the mandatory program of biodiesel 30 percent (B30), while the increase of oleochemical production was due to the sharp increase in consumption of cleaning and antiseptic products during the Covid-19 pandemic.

“President Jokowi announced that in 2020 the B30 program would continue, triggering a positive sentiment. The oleochemical consumption increased very significantly. I think it was due to the pandemic, as the consumption of disinfectants, soaps, and all kinds of cleaning and antiseptic products increased,” Joko said during a virtual press conference last week.

But on the food sector, the consumption of CPO saw a decrease from 801 thousand tons in 2019 to 723 thousand tons in 2020. Joko stated that it was resulted from the government’s policies to restrict social activities as part of efforts to stop the spread of the Covid-19 pandemic.

“The consumption of palm oil based food products decreased, as the food products are mostly consumed by hotels, restaurants, and caterings which saw fewer visitors due to the restriction of social activities,” he said.

This year, Gapki projected that the domestic consumption of CPO will increase. It is expected that the consumption will increase to 18.5 million tons. The increase is seen in line with the optimism of the public and business players. (*)

Source: REPUBLIKA.CO.ID | Featured image via republika.co.id