PALMOILMAGAZINE, JAKARTA – In June 2024, Indonesia’s palm oil industry experienced notable dynamics. Despite a decrease in production of crude palm oil (CPO) and palm kernel oil (PKO), exports saw a significant rise.
Mukti Sardjono, Executive Director of the Indonesian Palm Oil Association (IPOA), reported that CPO production in June 2024 was 3.691 million tons, down 5% from May 2024’s 3.885 million tons.
“PKO production also fell from 368 thousand tons in May to 354 thousand tons in June. Cumulatively, production for the first half of 2024 was 4.07% lower compared to the same period in 2023,” he stated in an official statement to Palmoilmagazine.com on Wednesday, August 28, 2024.
Also Read: Indonesia’s Palm Oil Production Surges by 12.4% in May 2023
In contrast, domestic consumption remained relatively stable, with a slight decrease from 1.943 million tons in May to 1.940 million tons in June 2024. Food consumption rose by 1 thousand tons, and oleochemical consumption increased by 5 thousand tons, while biodiesel consumption dropped from 907 thousand tons to 898 thousand tons.
The interesting was that the export significantly got escalated from 1,964 million tons in May to be 3,385 million tons in June 2024. The biggest sector was in CPO processed products that significantly increased 872 thousand tons from 1,365 million tons in May to be 2,237 million tons in June. CPO exports increased 578 thousand tons to be 651 thousand tons.
The increasing export volume was the same with the increasing price, from US$ 981 per ton in May to be US$ 1.011 per ton in June, that also escalated export values from US$ 1,728 billion in May to be US$ 2,798 billion in June.
In the geography, India was the biggest exporter that increased the purchase up to 599 thousand tons and the total exports to the country reached 783 thousand tons. China got increased it up to 322 thousand tons to be 712 thousand tons, Pakistan did too up to 156 thousand tons to be 286 thousand tons, and Egypt did too 100 thousand tons to be 122 thousand tons. In the contrary, the exports to European Union and Bangladesh got decreasing that reached 41 thousand tons and 14 thousand tons for each.
As the result of the decreasing production, stable consumption and export leap, CPO stocks by June 2024 got decreased to be 2,818 million tons, or 1,276 million tons less than it by the late of May. (P2)
