PALMOILMAGAZINE, JAKARTA – In 2024, the palm oil industries in Indonesia continue to grapple with various challenges, particularly within the context of global economic uncertainty. Major economies such as the United States are experiencing inflationary pressures, while China, the largest consumer of palm oil, is still recovering from the economic impacts of the Covid-19 pandemic. Europe also faces economic weaknesses, coupled with increasing fiscal deficits.
Furthermore, geopolitical tensions are escalating globally. Recent conflicts in the Black Sea region, involving countries like Russia, Ukraine, Egypt, and Palestine, have raised concerns about strategic commodity supplies. The Black Sea serves as a crucial trade route, and any disruptions due to geopolitical conflicts could have significant impacts on commodity markets worldwide.
Eddy Martono, Chairman of the Indonesian Palm Oil Association (IPOA), anticipates several trends in the palm oil industry for 2024. He predicts that domestic consumption will rise, particularly in sectors such as food, oleochemicals, and energy (biodiesel), with the full implementation of the biodiesel mandatory program (B35).
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The second, vegetable oil price in the world would not have significant change to last year. The third, production could be stagnant. “The fourth, export volume could be decreasing namely because of the increasing domestic needs,” he said in IPOA press conference that Palmoilmagazine.com attended by the late of February 2024. (T2)
