Indonesia's Palm Oil Production Falls Amidst Export Ban

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Vika Azkiya Dihni 20/07/2022 11:40 WIB

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The Indonesian palm oil export ban in effect from April 28 to May 22, 2022, impacted not only export performance but also production activities.

Indonesian Palm Oil Production and Consumption (May 2021-May 2022)

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Indonesian Palm Oil Production and Consumption (May 2021-May 2022)

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The palm oil export ban in effect from April 28 to May 22, 2022, impacted not only export performance but also production activities.

"Agronomically, the production of fresh fruit bunches (FFB) increased, but industrially, CPO production was lower than in April. Several companies began limiting harvesting and the purchase of FFB from farmers due to limited tank capacity," explained Mukti Sardjono, Executive Director of the Indonesian Palm Oil Association (GAPKI), on Friday (July 15, 2022).

GAPKI recorded total domestic palm oil production in May 2022 at 3.4 million tons. This figure is down 19.7% from 4.2 million tons in April 2022.

Specifically, crude palm oil (CPO) production in May 2022 was 3.1 million tons, down 19.8% from 3.8 million tons the previous month.

Meanwhile, crude palm kernel oil (CPKO) production in May 2022 was 304,000 tons, down 18.5% from 373,000 tons in April 2022.

Despite the decrease in production, palm oil stocks in May 2022 reached 7.2 million tons, up from 6.1 million tons in March 2022. This was due to the decline in export performance as a result of the government's ban.

Meanwhile, domestic palm oil consumption in May 2022 reached 1.6 million tons, 8% lower than the previous month's consumption.

For food purposes, palm oil consumption increased by 3%, from 812,000 tons in April to 837,000 tons in May 2022.

For biodiesel, consumption in May 2022 was 590,000 tons, 22% lower than the previous month's consumption of 755,000 tons.

(Also Read: CPO Price Remains at US$1,480 per Metric Ton)

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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Indonesia's Palm Oil Production Falls Amidst Export Ban

Indonesia's Palm Oil Production Falls Amidst Export Ban

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Indonesia's Palm Oil Production Falls Amidst Export Ban

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