The Association of Indonesian Palm Oil Producers (GAPKI) reported that the value of crude palm oil (CPO) exports in the first half (1H) of 2020 fell to US$10.06 billion from the same period last year of $20.22 billion - Photo by GIMNI

JAKARTA (TheInsiderStories) – The Association of Indonesian Palm Oil Producers (GAPKI) reported that the value of crude palm oil (CPO) exports in the first half (1H) of 2020 fell to US$10.06 billion from the same period last year of $20.22 billion. The export values has continued to decline since 2017 to $24.94 billion and in 2018 worth of $23.33 billion.

“In terms of (trade) balance, Indonesia’ non-oil and gas exports are still a surplus of $ 9 billion, partly contributed by palm oil exports,” said GAPKI Chairman, Joko Supriyono, at a press conference today (08/12).

As for the production side, during January to June was still contracted compared to 1H 0f 2019 by 9 percent and the combined other palm oil products was minus 10 percent. Based of GAPKI data, Indonesia’ palm oil production reached 23.5 million tones (MT) of CPO until June 2020 from June of last year of 25.8 MT of CPO.

In comparison, the palm oil production throughout 2019 recorded 51.8 MT of CPO, rose 9 percent from 2018 about 47.3 MT of CPO even was hampered by a prolonged dry season and forest fires. Domestic consumption will also increase 24 percent to 16.7 MT of CPO in 2019, said Supriyono.

In terms of palm oil exports in the 1H of 2020, it contracted 11 percent compared to the same period last year considering that on a monthly basis it was never higher than the monthly achievement last year. Total exports until June 2020 amounted to 15.51 MT of CPO from the same period of last year 17.56 MT of CPO.

As for last year, Indonesia’ palm oil exports (CPO and its derivatives) reached 36.17 MT of CPO. This figures grew 4.2 percent from the achievement in the same period the 2019 which reached 34.70 MT of CPO.

For this month, trade ministry has set benchmark price of the CPO for export duty or rises 5.54 percent to $656.98 per MT from prior month at $622.47 a MT caused the reference price is below the $750 per MT. For this reason, the government imposes an export levy zero a MT for the period August 2020.

Written by Editorial Staff, Email: theinsiderstories@gmail.com