InfoSAWIT, JAKARTA – Crude palm oil (CPO) ad palm kernel oil (PKO) production in Indonesia in 2023 could be reaching 50,07 million tons and 4,77 million tons for each. They increased 7,15% and 5,66% from the previous year. These happened for some factors, including the expensive CPO that encouraged to get plantings and expansion.
Palm oil consumption also increased in this country, derived from 21,24 million tons in 2022 to be 23,13 million tons in 2023. The main factor is biodiesel mandatory implementation that significantly increased, surpassed the consumption for food needs.
But palm oil exports from Indonesia decreased 2,38% to be 32,21 million tons namely to European Union that reached 11,6%, while the exports to Africa, China, India, and USA significantly escalated.
The decreasing palm oil average price in the globe, particularly at Ciff Rotterdam, that reached 28,7% from the previous year, delivered impacts for the export values from Indonesia, or from US$ 39,07 billion in 2022 to be US$ 30,32 billion in 2023. But CPO and PKO final stocks could remain stable at about 3,14 million tons.
In a whole, though palm oil production and consumption in Indonesia increased, the decreasing exports and cheaper price in the globe also delivered new challenges for palm oil industries in the future. (T2)