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Indonesia's Palm Oil Production Rises in October 2024



Doc. InfoSAWIT
Indonesia's Palm Oil Production Rises in October 2024

InfoSAWIT, JAKARTA - Indonesia's crude palm oil (CPO) and palm kernel oil (PKO) production saw a significant increase in October 2024. Data from the Indonesian Palm Oil Entrepreneurs Association (GAPKI) revealed that total production reached 4.843 million tons, marking a 9.69% rise compared to September 2024, which recorded 4.415 million tons. However, year-on-year (YoY) production until October 2024 stood at 43.780 million tons, representing a 4.56% decrease compared to the same period in 2023, which recorded 45.776 million tons.

GAPKI's Executive Director, Mukti Sardjono, stated that the increase in production coincided with a rise in domestic consumption. Total domestic consumption in October reached 2.083 million tons, up from 1.989 million tons in September 2024. The largest increase was seen in biodiesel usage, which surged by 12.07% to 1.052 million tons compared to the previous month.

"However, consumption for food and oleochemicals actually declined. Palm oil consumption for food dropped by 2.31% to 845 thousand tons, while oleochemical consumption fell by 2.11% to 186 thousand tons," he said in an official statement received by InfoSAWIT on Thursday (December 26, 2024).

On a yearly basis, total domestic consumption until October 2024 reached 19.642 million tons, an increase of 1.90% compared to 19.276 million tons in the same period of 2023. Biodiesel consumption was the main driver, increasing by 8.01% to 9.407 million tons. Conversely, consumption for food and oleochemicals decreased by 3.64% and 1.48%, respectively, compared to the previous year.

Meanwhile, export performance also recorded a significant surge. Total exports in October reached 2.888 million tons, up 27.79% from September 2024, which was 2.260 million tons. Processed CPO products saw the largest increase, rising by 31.66% from 1.573 million tons in September to 2.071 million tons in October. Raw CPO exports also skyrocketed by 169.53% from 128 thousand tons to 345 thousand tons. However, oleochemical exports experienced a decline of 13.23%, from 408 thousand tons in September to 354 thousand tons in October.

The increase in production and exports indicates a recovery in the national palm oil sector after several months of facing market challenges. However, the decline in domestic consumption for food and oleochemicals is a critical point that industry players need to address to maintain a balance between demand and supply in the domestic market. (T2)


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