India and China, Indonesia's Top Palm Oil Export Destinations in 2022

Indonesia consistently exports crude palm oil (CPO) to numerous countries. The Central Statistics Agency (BPS) recorded at least 10 main export destinations with the highest Free On Board (FOB) value throughout 2022.

India was the country with the highest export value in 2022, reaching US$5.32 billion. Export volume to this country was also the largest, at 4.99 million tons in the same period.

This export value to India was the highest in the last decade. Previously, palm oil exports to India reached US$4.9 billion in 2017.

Next highest was China, reaching US$3.99 billion throughout 2022. The volume of palm oil sent to China reached 3.8 million tons.

Pakistan was also recorded as the third-largest export destination, with a value of US$3.12 billion. Export volume to Pakistan was recorded at 2.8 million tons in 2022.

The only ASEAN country in the top 10 export destinations was Singapore, with US$146 million in 2022. This placed Singapore at the bottom of the list of Indonesia's main palm oil export destinations.

Overall, Indonesia's CPO export value reached US$29.62 billion in 2022. This figure increased by 3.56% compared to the previous year (year-on-year/yoy), marking the highest record in the last decade.

(Also read: Indonesia's Palm Oil Export Value Soars in 2022, Highest in a Decade)

CPO Prices Plummet

According to *CNBC Indonesia*, CPO prices on the Bursa Malaysia Exchange weakened during the early trading session on Thursday (7/9/2023). This weakening has occurred for three consecutive days. Malaysia is one of the world's largest producers of crude palm oil.

*Reuters* research, cited by *CNBC Indonesia*, states that Malaysia's palm oil stockpiles at the end of August are likely to surge to a six-month high of 1.89 million metric tons, due to increased production and slowing exports.

Furthermore, the market is still awaiting data from the Malaysian Palm Oil Board (MPOB) on the fate of palm oil stocks on September 11, 2023.

"The Bursa Malaysia Derivatives FCPO (Crude Palm Oil Futures) is in the red for the third consecutive day due to (likely) bearish MPOB survey data, which forecasts a surge in end-August stocks, driving selling interest in the market," said a Kuala Lumpur-based trader quoted by *CNBC Indonesia* from *Reuters*.

(Also read: CPO Prices Weaken in the First Half of 2023, What is the Future Projection?)