Palm Oil Exports to Europe Drop 12% in January-September 2019

National palm oil (Crude Palm Oil/CPO) products face discrimination in the European Union due to the perception that Indonesian palm oil plantations cause environmental damage. As a result, Indonesian palm oil exports from January to September 2019 decreased by 11.78% to 3.29 million tons compared to the same period the previous year. This volume represents 16% of Indonesia's total CPO exports, which reached 21.31 million tons. Similarly, the value of Indonesian exports to Europe fell by 27.89% to US$1.72 billion, or approximately Rp 24 trillion.

According to data from the Central Statistics Agency, the largest Indonesian palm oil exports to the European Union from January to September 2019 were to Spain, reaching 771.19 tons, down 17.1% compared to the previous year. The second largest destination for Indonesian CPO exports within the EU was the Netherlands, reaching 715.23 tons, down 15.3% from the previous period. Third was Italy, with a volume of 567.36 million tons, also down 16.7% compared to the previous year.

The management of palm oil plantations in Indonesia is considered to fall short of the EU's sustainability standards, causing environmental damage. This accusation is supported by the annual forest fires caused by land clearing conducted by parties affiliated with palm oil plantation companies.