PALMOILMAGAZINE, MEDAN – Speaking at the Palm Oil Industry Forum Group Discussion (FGD) with the theme “CPO Price & Economic Outlook 2023-2024,” organized by Palm Oil Plantation Fund Management Agency (PFMA/BPDPKS) on September 14, 2023, in Medan, North Sumatra, Director of PFMA Kabul Wijayanto emphasized the enduring and significant role that palm oil has played in Indonesia’s economy for over two decades.
“For more two decades, palm oil significantly contributed for Indonesia’s economy,” Kabul said, quoted Palmoilmagazine.com which attended the event.
Kabul expressed that 2023 poses significant economic challenges for Indonesia. However, the palm oil sector continues to play a pivotal role in the development of the country’s plantation sectors and has made a positive contribution to Indonesia’s Gross Domestic Product (GDP).
During the second quarter of 2023, Kabul noted that Indonesia’s GDP saw a commendable increase, rising from 5.04% in the previous year to an impressive 5.17%.
He also mentioned that palm oil sectors in Indonesia involve 2,4 million smallholders and hire 16 million workers.
Crude palm oil (CPO) at CIF Rotterdam in August 2023 was US$ 962 per metric ton or got cheaper US$ 43 per metric ton compared to July 2023 which was US$ 1.004 per metric ton.
Not only that, he also told that fresh fruit bunch (FFB) price decided by three provincial governments, such as, North Sumatera, Riau, and West Kalimantan in August 2023 was Rp 2.390 per kilogram in average or increased Rp 30 per kilogram from the average price in July 2023 which was Rp 2.359 per kilogram.
Palm oil export volume in 2022 reached 36,88 million metrict tons while by July 2023, the export volume reached 19,6 million metric tons. “The policy in palm oil export levy successfully encouraged downstream industries with the raw material export (CPO) that keeps decreasing, while downstream exports such as, refined one keeps increasing,” he said.
In smallholders replanting program (SRP), PFMA has distributed Rp 8,18 trillion that involved 130.032 planters and covered 295.545 hectares. Kabul acknowledge that the decreasing target in SRP happened for some issues, such as, plantation location that was not qualified the terms and conditions, such as, not in forest regions, peat protected areas, and business rights. (T2)