China and the US Become Indonesian Palm Oil Contractors

Jakarta, Armfalcon.com —

combined Businessman Palm oil Indonesia (GAPKI) said China and the United States (US) were the two countries that were buying up crude palm oil (CPO) RI in the midst of weakening demand from Europe.

The data was submitted by GAPKI Chairman Eddy Martono. He even mentioned China as a potential market for Indonesian palm oil.

“Exports to European destinations are still declining, then US exports are increasing. Exports from China, India, Pakistan and Bangladesh have remained stable. China is a fairly large market for us,” said Eddy at the Grand Hyatt Jakarta, Central Jakarta, Friday (14/4).

He added that throughout 2022, Indonesia exported 6.35 million tonnes of CPO to China. This record makes the Bamboo Curtain country lead the standings for Indonesia’s palm export destination countries, ahead of India with 5.54 million tonnes.

While the US is in fourth place with 2.28 million tons. This number has increased from 2021 which was only 1.96 million tons.

Even though he received many requests from China, Eddy said that Indonesia must continue to maintain the stability of demand for the main market for Indonesian palm oil. He specifically warned not to let India’s demand decline.

“Our palm oil is truly a gift from God. India may be as good as he can plant it, but his production will also be limited. Because indeed the most suitable for palm oil is Indonesia-Malaysia, around the equator. They (India) may be able to (plant oil palm), but productivity can’t be like us,” explained Eddy after the event.

In the last two months, Eddy said that Indonesia’s palm oil exports have increased to countries such as China, Bangladesh and the Netherlands. Meanwhile, decreased demand came from India, Italy, Malaysia, Pakistan and the US.

In January 2023, Indonesia’s total CPO exports reached 2.94 million tonnes. This figure fell slightly in February to 2.91 million tonnes.

Eddy said the decline in palm oil exports was due to the current low price. In addition, the ratio between Domestic Market Obligations (DMO) with exports increasing from 1:8 to 1:6 which made the export burden increase.

[Gambas:Video CNN]

(skt/aug)