InfoSAWIT, JAKARTA – Indonesia keeps reinforcing its position as the main palm oil producer in 2024. Escalating the needs in domestic, namely from biodiesel 30 percent (B30) implementation, would be main factor to get the sector go forward.
Executive Director of Indonesian Palm Oil Association (IPOA), Mukti Sardjono said in Perkebunan Outlook 2024 webinar that Gamal Institute conducted, palm oil export revenue hit the highest record in 2022, which was 39,07 billion US dollar. “But the numbers decreased about 25,58 billion US dollar in 2023,” he said, as in the official statement to InfoSAWIT, Wednesday (31/1/2024).
Mukti also mentioned there were shifts in palm oil export products. They were dominated by crude palm oil (CPO) raw materials, but now in downstream products, such as, refinery and oleochemical. In 2023, CPO exports reached 2,6 million tons while palm oil refinery reached 19,7 million tons and oleochemical reached 3,8 million tons. These showed increasing diversification products.
Though CPO exports decreased in numbers, Indonesia still maintained its trade with the main exporter countries, such as, China, India, Pakistan, Middle East, Bangladesh, and European Union.
In 2024, it is predicted that the domestic needs would be escalating namely if B40 is happening. But palm oil production would not significantly increase in numbers.
“The main issue is that the lower numbers to realize smallholders replanting program (SRP) because of area or plantation legal and many smallholders do not want to do SRP itself,” Mukti said.
Besides, it needs to notice that when fertilizers have no subsidy and plantation productivity decreases, there should be intervention by introducing new varieties and innovation, pollination bugs from Africa that IPOA initiated.
Mukti also told that in 2024, palm oil consumption would be reaching 25 million tons for food, biodiesel, and oleochemical. These reinforce the projection that palm oil production could not be enough to fulfill domestic and export needs in the same time.
To answer the challenges, it needs to escalate SRP realization and solve plantation issues namely the plantations in forest regions that laid about on 3 million hectares. Palm oil plantation development namely for energy sector needs attention so that it would not have something to do with the exports. (T2)
