Press Release
Indonesian Palm Oil Association (IPOA)

PALM OIL INDUSTRY PERFORMANCE IN JULY 2023

Export Strengthens, Stock Weakens

Jakarta – The total production of palm oil in July 2023 reached 4,771 thousand tons, consisting of CPO at 4,357 thousand tons, and PKO at 414 thousand tons. The total production was higher by 7.9% if compared to the production in June 2023 at 4,421 thousand tons. By Year on Year (YoY), the production increased 17.4% or 4,763 thousand tons from the production in Year to Date (YTD) July 2022 at 27,303 thousand tons to 32,066 thousand tons in YTD July 2023.

The domestic total consumption in July 2023 reached 1,757 thousand tons, which was 10.5% lower than the domestic consumption in June 2023 at 1,963 thousand tons. The decrease was mainly caused by the decline of biodiesel use by 19.5% or 174 thousand tons, from 893 thousand tons in June 2023 to 719 thousand tons in July 2023.

Such condition was also seen in the consumption of cooking oil and oleochemical which respectively dropped by 3.1% and 2.6%. The consumption of cooking oil in July 2023 reached 853 thousand tons and oleochemical at 185 thousand tons, while in June 2023, the consumption of cooking oil reached 880 thousand tons and oleochemical at 190 thousand tons.

Total exports in July 2023 reached 3,519 thousand tons, which rose by 2.0% if compared to the exports in June 2023 at 3,450 thousand tons. The highest increase was seen in the exports of CPO at 589 thousand tons, or an increase of 16.9% from the exports in June 2023 at 504 thousand tons. Conversely, the export of processed CPO dropped by 3.4% from 2,487 thousand tons in June 2023 to 2,403 thousand tons in July 2023.

The increase of the palm oil industry’s export performance in July 2023 had resulted in the increase of export value by 1.4% from US$2,877 million in June 2023 to US$2,918 million in July 2023. The biggest increase of exports was seen to India and Bangladesh, which rose by 180.6 thousand tons and 54.5 thousand tons respectively.

The export increase was also seen to Malaysia (+36.8 thousand tons), USA (+36.8 thousand tons) and EU (+24.4 thousand tons). The biggest decrease of exports was seen to Africa (-126.2 thousand tons), China (-94.6 thousand tons) and Pakistan (-58.1 thousand tons). By YTD until July 2023, the export to India was higher by 87% compared to the export in 2022, while the exports to China rose by 78%.

With an estimation of initial stock in July 2023 at 3,629 thousand tons and the production increase at 7.9%, consumption decrease of 10.5% and export increase of 2.0%, then stock by the end of July 2023 was estimated to reach 3,128 thousand tons or a decline of 13.8% compared to that of June 2023 at 3,629 thousand tons.

Jakarta, 29 September 2023
Indonesian Palm Oil Association (IPOA)

For further information, please contact:

Mukti Sardjono
Executive Director GAPKI