Press Release
Indonesian Palm Oil Association (IPOA)
PALM OIL INDUSTRY PERFORMANCE FEBRUARY 2023
Production Decline Still Continues
The production of palm oil in February 2023 (3,883 thousand tons) was still lower than that of January 2023 (3,892 thousand tons). But the decline was not as big as that in January compared to December 2022 (4,300 thousand tons). Referring to the palm oil production trend during the previous years, it indicates that the decline, which has been seen since September 2022, is predicted to end soon. Besides, PKO production also slightly dropped from 370 thousand tons in January 2023 to 369 thousand tons in February 2023.
Total export volume also saw a decrease from 2,946 thousand tons in January 2023 to 2,912 thousand tons in February 2023. But export value rose from US$2,605 million in January 2023 to US$2,687 million in February 2023. The increase was mainly caused by the export increase of processed palm oil from 2,121 thousand tons in January to 2,254 thousand tons in February (prices of processed products are higher than the price of CPO).
Based on export destination, the biggest increase was seen to China (+287 thousand tons/+55%), Bangladesh (+115 thousand tons/+289%) and Egypt (+81 thousand tons/+142%). Meanwhile, the increase was also seen in exports to EU (excluded Spain and Italy), Philippines, Myanmar and Vietnam, although in smaller amount.
Big decrease of exports was seen to India (-301 thousand tons/-41%) and Pakistan (-87 thousand tons/-45%). Exports to USA, Malaysia, and Singapore also decreased, but in smaller amount.
Meanwhile, total local consumption in February 2023 reached 1,803 thousand tons, which was higher than that of January 2023 at 1,786 thousand tons. Despite just in small amount, the consumption increase was mainly seen in the industries of foods, oleochemical and biodiesel.
Currently, a number of regions in Indonesia have entered dry season. According to the Meteorology, Climatology and Geophysics Board (BMKG), Indonesia is potential to see small-scale el Nino which will be getting smaller until the end of dry season 2023. The condition is predicted not to cause any significant impact to the productivity of the oil palm plantations, so that domestic production is expected to continually increase during 2023. But despite the fact, Indonesia should be always alert on the impact of dry season to potential forest and land fires. Therefore, GAPKI members are demanded to prepare all means and facilities and other necessary resources to deal with the dry season, including collaborations with the communities of fire care (MPA).
Jakarta, 14 April 2023
Indonesian Palm Oil Association (IPOA)
For further information, please contact:
Mukti Sardjono
Executive Director GAPKI
