PALMOILMAGAZINE, JAKARTA – In 2023, Indonesia witnessed a notable increase in the production of crude palm oil (CPO) and palm kernel oil (PKO), reaching approximately 50.07 million tons and 4.77 million tons, respectively.
These figures represent a growth of 7.15% and 5.66% compared to the previous year. Several factors contributed to this surge, including the high prices of CPO, which incentivized plantation activities and expansion efforts.
Additionally, palm oil consumption in the country experienced a rise, climbing from 21.24 million tons in 2022 to 23.13 million tons in 2023. This increase was primarily driven by the mandatory implementation of biodiesel, which significantly boosted consumption, surpassing the demand for food purposes.
Also Read: Indonesia Palm Oil Production Surges by 12% in May 2023
However, despite these positive trends, palm oil exports from Indonesia saw a decline of 2.38%, totaling 32.21 million tons. Notably, exports to the European Union dropped by 11.6%, while exports to Africa, China, India, and the USA witnessed significant increases.
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.
Also Read:
- CPO Prices at KPBN Tender Surge by 0.52% on Friday (1/3) Reflecting Weekly Increase of 1.59%
- CPO Prices at KPBN Tender Increased by 0.81% on Thursday (29/2)
- CPO Prices Surge 0.74% at KPBN Tender on Wednesday (28/2) and Follow Suit at Malaysia Exchange
- CPO Price at KPBN Tenders Increased 0.78% on Tuesday (27/2), Mirrored in Malaysian Exchange
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)
