JAKARTA – The Palm Oil Agribusiness Strategic Policy Institute (PASPI) reported that Indonesian palm oil industry has recently made great progress. The down-streaming process has resulted in the increase of variety of palm oil products, and the increase of value added in the economic sector.
PASPI Executive Director Tungkot Sipayung said that Indonesia has been continually developing its downstream palm oil industry with a view to raising added values and increasing its multiplier effect among the Indonesian people. “In 2010 Indonesia’s palm oil exports were dominated by crude palm oil (CPO), but then in 2022 the exports had been dominated by semi-finished palm products,” he said.
According to him, Indonesia has now had 750 kinds of downstream products based on palm oil and they are all competitive at the global market. “The further downstream the products, the greater their added values and in need of more innovations,” Tungkot said during a special dialog in Jakarta on Monday (11/12).
He pointed out that in 2010, Indonesia’s exports of palm oil were around 70-80 percent CPO. But since then it has been reversed gradually and finally in 2022 Indonesia’s palm oil exports consisted of around 90 percent processed or semi-finished palm products. “But the industry needs to accelerate downstream innovations to further increase variety of products and added values,” he said.
Tungkot said the Indonesia’s downstream palm oil industry is still slow in innovating as reflected by the performance of the industry players. “Besides, the downstream industry is not yet fully supported with comprehensive and well-designed policies,” he said.
He urged the palm oil companies to adopt the results of palm oil researches, which were funded by the oil palm plantation fund management board (BPDPKS). “Researchers have conducted their palm oil researches which were financed by the BPDPKS. Companies should adopt the research results to further create added values,” he said.
Meanwhile, the Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that since 2018 Indonesia’s products of palm oil are no longer dominated by CPO, but by processed palm oil products. “In 2022, our CPO export reached 3,463 thousand tons from the total exports of palm oil at 33,928 thousand tons. Our export of crude palm kernel oil (PKO) reached 107 thousand tons,” he said.
He said that the other palm oil exports consist of refined palm oil at 24,410,000 tons, refined PKO at 1,335,000 tons, biodiesel at 4,179,000 tons and oleochemical at 4,179,000 tons. “Domestic demand has been continually rising from 16.7 million tons in 2019 to 21.1 million tons in 2022,” said Eddy Martono. (*)
Source: sawitku.id/sawitkita.id
