Press Release
Indonesian Palm Oil Association (IPOA)

PALM OIL INDUSTRY PERFORMANCE IN MAY 2023

Production Increases, Stock Rises

Jakarta – The production of CPO and PKO in May 2023 increased by 12.4% from that of the previous month as the Muslim holiday and festivity of Eid al-Fitr affected the harvesting activities. Compared to that of May 2022, the total production of CPO and PKO in May 2023 rose by 15% (YoY).

In May 2023, the total domestic consumption dropped by 4.2% from that of April of the same year. The largest drop was seen in the consumption for biodiesel (-10.4%), followed by consumption for oleo-chemical (-1.5%). Cumulatively, from January to May 2023 the consumption for biodiesel production increased (+5%), for oleo-chemical rose (+5.6%) and for food industries rose (+29.3%).

Meanwhile, Year on Year (YoY), the total consumption as of May 2023 increased by 15.4% to 9,114 thousand tons from 7,898 thousand tons during the same period in 2022.

Total exports of palm oil products in May 2023 increased by 4.5% compared to that of the previous month. The biggest increase of exports was seen to India (+168.3 thousand tons or +105.1%), followed by African countries except Egypt (+85.5 thousand tons or +43.3%) and Egypt (+46.5 thousand tons or +128.8%).

The biggest decrease of exports was seen to countries of EU-27 (-73.1 thousand tons or -22.5%), Pakistan (-58.4 thousand tons or -21.1%), and Bangladesh (-52.4 thousand tons or -51.3%).

YoY, total exports as of May 2023 surged by 33.5% to 12,864 thousand tons from 9,633 thousand tons in 2022. Total export value of palm oil products in May 2023 reached US$2.05 billion or an increase of 4.6% from that of the same period at the previous year.

Despite the price of CPO CIF Rotterdam CPO in May 2023 (US$ 940/ton) was lower than that of April 2023 (US$1023/ton), actually the average price of transactions increased to a number of countries, including India, Bangladesh, several other Asian countries, and the USA.

Despite the increase of local consumption of palm oil products and derivatives, the high increase of production and initial stock has resulted in significant increase of final stock in May 2023 by 28.7% to 4.67 million tons or an increase of 1.04 million tons from 3.63 million tons in April 2023.

Jakarta, 21 July 2023
Indonesian Palm Oil Association (IPOA)

For further information, please contact:

Mukti Sardjono
Executive Director GAPKI