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Indonesia's CPO Production Declines in November 2024, Domestic Consumption Continues to Grow



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Indonesia's CPO Production Declines in November 2024, Domestic Consumption Continues to Grow

InfoSAWIT, JAKARTA – Indonesia's crude palm oil (CPO) production in November 2024 was recorded at 4.333 million tons, a decrease of 2.03% compared to October's 4.423 million tons. This decline was also seen in palm kernel oil (PKO) production, which fell to 412,000 tons from 420,000 tons in October.

Cumulatively, CPO production until November 2024 was 3.87% lower than the same period last year, with this year's production reaching 44.288 million tons, compared to 46.073 million tons last year.

Mukti Sardjono, Executive Director of the Indonesian Palm Oil Entrepreneurs Association (GAPKI), explained that domestic consumption also decreased from 2.083 million tons in October to 2.030 million tons in November 2024, a drop of 2.54%. "The decline was primarily in biodiesel consumption, which fell from 1.052 million tons to 994,000 tons, and oleochemicals, which decreased by 19,000 tons from 186,000 tons to 167,000 tons. However, food consumption increased by 24,000 tons from 845,000 tons in October to 869,000 tons," Mukti stated in an official release reported by InfoSAWIT on Saturday, January 25, 2025.

Despite the decline in November, year-on-year domestic consumption until November 2024 still showed growth of 2.14%. Total domestic consumption reached 21.672 million tons, higher than last year's 21.218 million tons.

However, the breakdown of consumption reveals different dynamics. Food consumption was recorded at 9.244 million tons, down 2.76% compared to last year. Oleochemical consumption also fell by 2.36% to 2.027 million tons. Conversely, biodiesel consumption significantly increased, reaching 10.401 million tons, up 7.71% from the previous year.

The decline in production and domestic consumption reflects the challenges facing the national palm oil sector, although the continued increase in biodiesel consumption indicates the success of the government's renewable energy program. Moving forward, strategic measures are needed to maintain production stability and enhance domestic consumption, particularly in the food and oleochemical sectors. (T2)

 


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