Press Release
Indonesian Palm Oil Association (IPOA)

Palm Oil Export Drop, Stock Stagnant

The production of crude palm oil (CPO) in September 2022 increased from that in August due to seasonal factor by 16% to 4,545 thousand tons and palm kernel oil (PKO) to 442 thousand tons, making up the total production of CPO and PKO as of September at 36,596 thousand tons. The total production was lower by 4% from that of September 2021 at 38,147 thousand tons.

Total local consumption in September 2022 reached 1,821 thousand tons, which was relatively at the same level with that of August at 1,841 thousand tons. The local consumption in September for foods dropped by 1% from that of August, for oleo-chemical rose by 6% and for biodiesel decreased by 4%.

Palm oil exports in September decreased very significantly (-27%) from 4,334 thousand tons in August to 3,183 thousand tons in September. The largest decrease was seen in the export of processed CPO from 2,971 thousand tons in August to 2,140 thousand tons in September (-28%), while the export of CPO dropped from 741 thousand tons in August to 427 thousand tons in September (-47%).

Due to the export decrease, the foreign exchange earning from palm oil exports in September 2022 reached US$3,269.6 million or a decrease of 31.7% from that of August at US$4,791.0 million. Besides volume, the foreign exchange decrease was also caused by the decrease of CPO price from US$1,095 per ton cif Rotterdam in August to US$1,048 per ton cif Rotterdam in September.

The foreign exchange contribution from palm oil to the total export value dropped from 18% in August to 15% in September. Based on country destination, the export to India in September dropped by 424 thousand tons to 661.8 thousand tons. Despite the fact, the exports to India in September were higher than those monthly exports to India at around 300 thousand tons.

The exports to EU-27 (Europe) also decreased by 138 thousand tons from 506.8 thousand tons in August to 368.3 thousand tons in September (-27,3%). With the production, consumption and exports as mentioned above, final stock in September 2022 amounted to 4,025 thousand tons, which was relatively the same level with the final stock by the end of August at 4,036 thousand tons.

Jakarta, 21 November 2022
Indonesian Palm Oil Association (IPOA)

For further information, please contact:

Mukti Sardjono
Executive Director GAPKI