Jakarta – The Indonesian Palm Oil Association (GAPKI) reported that Indonesia’s exports of palm oil products in August 2022 surged significantly compared to those in previous month. Its palm oil export value had also increased during the same period, despite the decrease of global palm oil’s price.
Based on data from GAPKI, the export volume of Indonesia’s palm oil products in August 2022 reached 4.33 million tons, an increase of 1.63 million tons from that in July 2022 at 2.7 million tons. The largest increase was seen in the volume of processed crude palm oil (CPO) from 1.92 million tons in July 2022 to 2.97 million tons in August 2022.
“The export increase in August was caused by the decision of the government to give zero levy during August which was then extended until October 2022. Apparently, the government, through the economic coordinating ministry, will extend it until the end of this year,” GAPKI Executive Director Mukti Sardjono said in a press release on Tuesday, 11 October 2022.
Mukti further said that the government’s zero levy policy had increased the competitiveness of Indonesia’s palm oil products at the global market amid tight competition with other vegetable oils.
The increase of palm oil export volume was also accompanied with its increase of export value. In August 2022, the export value of palm oil products reached US$4.8 billion or an increase of US$900 million compared to their export value in July 2022 at US$3.8 billion.
Three countries of export destination that saw the highest export increase are as follows:
- India
Indonesia’s palm oil exports to India increased by 193 percent from 370.8 thousand tons in July 2022 to 1.086 million tons in August 2022.
- China
Indonesia’s palm oil exports to China increased by 68 percent or 355 thousand tons, from 524 thousand tons in July 2022 to 879 thousand tons in August 2022.
- European Union (EU)
Indonesia’s palm oil exports to European Union (EU) rose by 51.7 percent from 334 thousand tons in July 2022 to 506.8 thousand tons in August 2022.
Mukti said that the export value increased amid the weakening market condition as the price of CPO CIF Rotterdam dropped from US$1,203/ton in July to US$1,095/ton in August. The export increase was supported by the increase of national production of palm oil.
In August 2022, the palm oil production reached 4.3 million tons or an increase of 503 thousand tons compared to that in July 2022 at 3.8 million tons. According to Mukti, the production increase was caused by the seasonal factor and all palm oil mills have been fully in operation.
“But annually until August 2022, the production this year had reached 31.6 million tons, which was lower than that in 2021 at 33.6 million tons,” he said. (*)
Source: Warta Ekonomi
