Press Release
Indonesian Palm Oil Association (IPOA)

PRODUCTION STARTS RISING,  STOCK RECOVERING

Indonesia’s export value in June 2021 reached US$ 18.55 billion, an increase of US$ 1.62 billion (+9.5%) from that in May 2021, but import value in June 2021 also rose to US$ 17.23 billion or an increase of US$ 3.0 billion (+21.08%), causing trade balance in June 2021 to drop to US$ 1.32 billion or a decrease of 51.1% from that in May. The export value of palm oil products in June dropped to US$ 2.118 billion, a decrease of 30.1% or lower by US$ 0.945 billion compared to that in May.

Despite the fact, foreign exchange from palm oil exports still amounted to 11.4% of the total foreign exchange from total exports, showing that palm oil exports still play an important role in gaining foreign exchange. The price decrease was one factor causing the export drop, besides the possibility of importing countries reduce their imports as they still have enough stock of vegetable oils. The average price in June was US$ 1,054/ton, which was much lower (-15.1%) from that in May at US$ 1,241/ton.

In terms of volume, the exports of palm oil products in June 2021 reached 2,026 thousand tons or 926 thousand tons (31.4%) lower than the exports in May 2021, but year on year (YoY) as of June 2021, the exports of palm oil was 1.8% higher than that in 2020. The decrease was seen in all products except oleochemical. The export drop was seen as a result of businessmen taking the stance of wait and see due to the very high volatility of palm oil prices.

The highest export drop was seen to European Union (EU) (-151 thousand tons), followed by Middle East (-124 thousand tons), India (-105 thousand tons) and Pakistan (-108 thousand tons). But year on year (YoY) as of June 2021, the biggest export drop was seen to India (-475 thousand tons).

Local consumption in June 2021 reached 1,584 thousand tons, or  5.8% lower than the local consumption in May. The decrease was seen in the palm oil use for foods (-4.6%) and biodiesel (-9.6%), while for oleochemical rose by 3.4%. Year on year (YoY) the local  consumption in 2021 was higher by 19% than the local consumption in 2020.

Production in June 2021 had started to increase. The production of crude palm oil (CPO) in June reached 4,482 thousand tons, while production of palm kernel oil (PKO) reached 426 thousand tons, so that total production of CPO and PKO was around 12.7% higher than that in May at 4,354 thousand tons. Year on year (YoY) production of CPO+PKO in 2021 was 4.3% higher than that in 2020.

The production increase, and export and local consumption drop had caused the stock to recover to 4,150 thousand tons as compared to 2,848 thousand tons in May. The increase of palm oil production from Indonesia is eagerly expected by global consumers. Therefore, the momentum of Indonesia’s palm oil production increase should be continually maintained, particularly from the impacts of forest and land fires (Karhutla) incidences and from the spread of Covid-19 in the oil palm plantations.

Jakarta, 18 August 2021
Indonesian Palm Oil Association (IPOA)

For further information, please contact:

Mukti Sardjono
Executive Director GAPKI
Phone/Fax:
021-57943871
Fax. 021-57943872

 

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