Palm Oil Export Value Grew 18% in 2020, Driven by Price Increases

Crude palm oil (CPO) is Indonesia's leading export commodity. This is evident from Indonesia's palm oil export value, which reached US$18.44 billion or Rp 258 trillion (Rp 14,000/US$) in 2020, a growth of 18.43% compared to the previous year.

This CPO export value achievement is equivalent to 11.3% of the total national export value of US$163.2 billion. This proportion is the largest compared to other commodities.

The increase in palm oil prices in the international market supported the growth of CPO export value, even though the volume decreased by 7.52% to 27.33 million tons last year. Based on Trading Economics data, the CPO price increased from MYR 3,035.71 per ton at the end of December 2019 to MYR 3,600 per ton at the end of December 2020.

The decrease in CPO export volume was in line with the decline in demand from most countries. According to the Indonesian Palm Oil Association (GAPKI), this was a consequence of the lockdowns during the Covid-19 coronavirus pandemic.

The largest decrease in CPO export volume occurred in China (1.96 million tons), the European Union (712,700 tons), Bangladesh (323,900 tons), the Middle East (280,700 tons), and Africa (249,200 tons). Meanwhile, export volumes to Pakistan and India increased by 275,700 tons and 111,700 tons, respectively.