Export Reopens, How is the Performance of Domestic Palm Oil Exports?

The Indonesian government has lifted the ban on the export of crude palm oil (CPO) and raw materials for cooking oil, effective today, Monday, May 23, 2022.

According to the Indonesian Palm Oil Association (GAPKI), total palm oil exports in March 2022 reached only 2.01 million tons, a 3.14% decrease from the previous month's 2.09 million tons.

Despite the volume decrease, the value of palm oil exports increased by 26%, from US$2,799 million in February 2022 to US$3,513 million in March 2022.

This performance was driven by rising palm oil prices in the international market. The average global CPO CIF Rotterdam price, according to GAPKI, was US$1,813/ton in March 2022, up from US$1,522/ton in February.

By product type, Indonesian palm oil exports in March 2022 consisted of 59,000 tons of CPO and 1.54 million tons of processed CPO.

Exports of crude palm kernel oil (CPKO) totaled 2,000 tons, processed CPKO 65,000 tons, biodiesel 1,000 tons, and oleochemicals 342,000 tons.

By destination country, Russia experienced the largest decrease in Indonesian palm oil imports at 50% month-on-month, followed by Malaysia at 41% and the Netherlands at 33%.

(Also read: Indonesia's CPO Exports Surpassed by Malaysia Since Q2 2021)