Indonesia's Palm Oil Production Reaches 45.12 Million Tons in 2022: Provinces with the Highest Output

The COVID-19 pandemic, which began in early 2020, is estimated to have caused a 5.01 percent decrease in palm oil or crude palm oil (CPO) production compared to 2019, reaching 45.74 million tons. The Central Bureau of Statistics (BPS) reported a slight further decrease in CPO production to 45.12 million tons in 2021.

In 2021, the largest CPO production was estimated to be from Riau Province, with 8.96 million tons, or approximately 19.55 percent of Indonesia's total production. The next largest producer was Central Kalimantan Province, with 7.28 million tons, or 12.47 percent.

Furthermore, BPS estimates that in 2021, the area of palm oil plantations totaled 14.62 million hectares. These plantations are spread across 26 provinces: all provinces on Sumatra and Kalimantan islands, West Java, Banten, Central Sulawesi, South Sulawesi, Southeast Sulawesi, West Sulawesi, Gorontalo, Maluku, North Maluku, Papua, and West Papua.

In 2021, Riau Province remained the largest palm oil producing province, with an area of 2.86 million hectares, or 19.55 percent of the total palm oil plantation area in Indonesia. From this area, Riau Province produced 8.96 million tons of CPO.

Meanwhile, the area of palm oil plantations by ownership status in 2021 did not show significant changes. As in previous years, the largest area of palm oil plantations was still dominated by large private plantations.

8.04 million hectares, or 55 percent, of palm oil plantations are controlled by private plantations; followed by people's plantations controlling 6.03 million hectares, or 41.24 percent; and the remaining 0.55 million hectares, or 3.76 percent, are controlled by large state-owned plantations.

(read: CPO Price Rises to US$ 1,135 per Metric Ton)