Covid-19 Vaccination Expected To Push Up Palm Oil Export

JAKARTA – The Indonesian Palm Oil Association (Gapki) Chairman Joko Supriyono said that the increase of palm oil export this year will depend on the Covid-19 vaccination program which is globally being implemented.

He said that the increase of global demand will be also driven by the policies of many countries which will be forced to reopen due to economic consideration.

“We predict the export of palm oil this year will reach 37.5 million tons, an increase of 10.29 percent from that of last year,” Joko said during a virtual discussion which was held by Gapki to celebrate its 40th anniversary, in cooperation with the Forum of Media Leaders on Thursday, 04 March 2021.

Joko admitted that the realization of palm oil export this year will not be much higher than those realized during the last few years. This year, the export of crude palm oil (CPO) is projected to reach 7.5 million tons, an increase of 4.6 percent compared to that of last year (yoy).

The export of processed CPO is projected to reach 24 million tons or an increase of 13.7 percent, export of lauric  1.8 million tons or dropped by 1.7 percent and oleo-chemical at 4.2 million tons.

“If the vaccination program is quickly finalized, then the market will soon recover and push up demand,” he said.

Joko said that Indonesian export of palm oil last year was dominated by downstream products. Indonesia’s export volume of palm oil in 2020 reached 34.0 million tons, which was lower than its export volume in 2019 at 37.39 million tons. But, its CPO export value last year was lower than downstream products.

“The CPO export volume was only 7.1 million tons. The total palm oil exports were dominated by downstream products,” said Joko.

He said that most of the palm oil exports was processed CPO. But a part of it was further processed to oleochemicals. “The palm oil sub-sector contributed US22.97 billion to the national GDP,” he said. (*)

Source: wartaekonomi.co.id | Featured image via kompas.com

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