Despite a Decline in Exports, Domestic Palm Oil Consumption Increased in 2022

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Adi Ahdiat 26/01/2023 13:40 WIB

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Gapki reported a decline in Indonesia's palm oil exports in 2022. However, domestic consumption increased, reaching a five-year high.

Indonesia's Palm Oil Production, Export, and Domestic Consumption Volume (2018-2022)

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Despite a Decline in Exports, Domestic Palm Oil Consumption Increased in 2022

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Indonesia's Palm Oil Production, Export, and Domestic Consumption Volume (2018-2022)

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According to the Indonesian Palm Oil Entrepreneurs Association (Gapki), in 2022, national palm oil production reached 51.2 million tons, comprising 46.7 million tons of crude palm oil (CPO) and 4.5 million tons of crude palm kernel oil (CPKO).

Although production remained relatively stable, declining only 0.1% year-on-year (yoy) compared to 2021, Indonesian palm oil exports in 2022 fell by 8.5% (yoy) to 30.8 million tons, reaching the lowest level in the last five years.

Gapki attributes this export decline to various factors, including extreme weather, the Russia-Ukraine war, a surge in global vegetable oil prices, increased fertilizer prices, export ban policies, and the low achievement of the People's Palm Oil Rejuvenation Program (PSR).

"These unusual events significantly impacted the performance of Indonesia's palm oil industry," Gapki stated in its press release on Wednesday, January 25, 2023.

Conversely, domestic palm oil consumption in 2022 reached 20.9 million tons, a 13% increase (yoy) and the highest level since 2018.

A further breakdown reveals that local palm oil consumption for the food industry rose by approximately 11% (yoy), the oleochemical industry by 2.8% (yoy), and biodiesel consumption increased by 20.4% (yoy).

"The conditions affecting the palm oil industry throughout 2022 are expected to continue influencing its performance in 2023," Gapki stated.

"Production is not expected to increase, while domestic consumption is projected to rise due to the implementation of the B35 mandate starting February 1, 2023," it continued.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Despite a Decline in Exports, Domestic Palm Oil Consumption Increased in 2022

Despite a Decline in Exports, Domestic Palm Oil Consumption Increased in 2022

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Despite a Decline in Exports, Domestic Palm Oil Consumption Increased in 2022

Despite a Decline in Exports, Domestic Palm Oil Consumption Increased in 2022

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