InfoSAWIT, JAKARTA – Indonesia’s palm oil exports faced a significant decline in September 2024, signaling mounting pressures in the global market. Data from the Indonesian Palm Oil Association (GAPKI) revealed that total exports dropped sharply by 21.97%, from 2.384 million tons in August to 1.860 million tons in September.

Mukti Sardjono, Executive Director of GAPKI, detailed the decline by product category. Processed crude palm oil (CPO) products fell by 17.70%, from 1.668 million tons in August to 1.373 million tons in September. Meanwhile, crude palm oil (CPO) exports experienced a dramatic 87.26% drop, plummeting from 222,000 tons to just 28,000 tons. Oleochemical exports saw a more moderate decline of 7.33%, falling from 440,000 tons to 408,000 tons.

The most substantial export decreases were seen in key markets. Exports to India fell by 220,000 tons after a sharp increase of 170,000 tons in August. Similarly, Pakistan saw a decline of 112,000 tons following a rise of 62,000 tons in the previous month. Exports to the Middle East dropped by 79,000 tons after a modest gain of 6,000 tons in August.

However, some markets recorded notable gains. Exports to the United States rose by 80,000 tons to reach 231,000 tons, rebounding from a 42,000-ton drop in August. Exports to the Netherlands also increased by 35,000 tons, reaching 155,000 tons and building on a 39,000-ton increase the previous month.

Year-on-Year Trends

On a year-to-date basis through September 2024, exports to several key countries showed substantial declines. Shipments to China fell by 37.66%, while India recorded a 31.13% decrease, and Bangladesh saw an alarming 73.12% drop compared to 2023.

Conversely, some markets demonstrated positive growth. Exports to the European Union increased by 12.31%, while Pakistan saw a 3.98% rise. Exports to Russia surged by a remarkable 135% compared to the same period in 2023.

"Overall, national exports from January to September 2024 fell by 16.60% compared to the same period in 2023," Mukti stated in an official release, as quoted by InfoSAWIT on Friday (22/11/2024).

The decline in export volumes also affected export revenues. In September 2024, export value reached USD 2.183 billion, a 14.06% drop from USD 2.450 billion in August. Year-to-date through September, palm oil export value stood at USD 19.532 billion, down 15.25% from USD 23.046 billion during the same period in 2023.

Coupled with a 3.48% decrease in domestic consumption, which fell to 1.989 million tons in September, the decline in exports has led to a buildup in national palm oil stocks. By the end of September 2024, stockpiles rose to 3.021 million tons, up from 2.450 million tons in August.

These figures underscore the challenges facing Indonesia’s palm oil industry amid shifting global demand and market dynamics. (T2)