Palm oil export and price improving: GAPKI Executive Director

Aerial photo of the construction project of a crude palm oil (CPO) factory in the Teluk Bayur, Padang, West Sumatra, Wednesday (January 15, 2020). Apical Group is working with PT Pelindo II Teluk Bayur to build a CPO factory which is expected to help achieve PT Pelindo II's CPO export target of five million tons per year. (ANTARA PHOTO/Iggoy el Fitra/wsj.)

The export value also increased from USD1,474 billion to USD1,624 billion,

Jakarta (ANTARA) - Executive Director of the Indonesian Palm Oil Producers Association (GAPKI) Mukti Sardjono said export and price of palm oil has improved. While CPO production in June was 4,096 thousand tons or increased by 13,5 percent when compared to May 2020.

The domestic consumption fell by 3.5 percent to 1,331 thousand tons, export increased significantly 13.9 percent to 2,767 thousand tons, and CPO price still showed an increase from an average of USD526 in May to USD602 per ton-Cif Rotterdam in June.

"The export value also increased from USD1,474 billion to USD1,624 billion," he said in a GAPKI virtual press conference on the performance of the Indonesia palm oil industry in the first quarter of 2020.

When compared to January-June 2019, the production of CPO and PKO January-June 2020 which is 23.504 thousand ton was 9.2 percent lower.

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Meanwhile, domestic consumption was 8,665 thousand tons or 2.9 percent higher, export volume was 15.503 thousand tons or 11.7 percent lower and export value was 6.4 percent higher to USD10.061 million.

Production in June was higher than May 2020 is thought not only due to carry overproduction in May, which was hampered by Eid, also some provinces have entered a period of increasing production trend.

"Domestic consumption in June which is still lower than May is thought to be caused by Large-Scale Social Restriction (PSBB)," he said.

Meanwhile. food consumption fell by 3.9 percent to 638 thousand tons. The percentage reduction in food consumption was lower than the average of the previous three months of 5,4 percent.

Biodiesel consumption in June fell by 5.4 percent from May to 551 thousand tons. Compared to January-June 2019, biodiesel consumption in 2020 was 25 percent higher due to the implementation of the B30 program.

Likewise, June's domestic consumption of oleochemicals still rose by 6,8 percent when compared to May, even though at a slower pace.

"The increase in export was high enough in June after it fell in the previous month. The increase occurs in CPO 31 percent, refined palm oil 10,2 percent, lauric oil 6 percent, and also biodiesel export," he said.

According to him, the higher increase in export was to India 52 percent to 583 thousand tons, Afrika 43,3 percent to 271 thousand tons, China 33 percent to 440 thousand tons. Then Pakistan 32 percent to 203 thousand tons.

The increase in CPO export to India reached 206 thousand tons from the total increase of 200 thousand tons, but there was a decline in export of other products, especially refined palm oil.
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