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Indonesia CPO exports to Middle East increases, offseting a fall of exports to China, India

JAKARTA ( – Indonesia’s crude palm oil (CPO) to China and India fell in 2014, however the decline was offset by an increase of CPO and CPO derivative exports to the Middle East and United States.

The Indonesian Palm Oil Producers Association (GAPKI) said in a statement signed by the association’s Executive Director Fadhil Hasan that based on the GAPKI data, total exports of crude palm oil (CPO) and its derivative products in 2014 reached 21.76 million, or increased slightly by 2.5 percent from 21.22 million tons in 2013.

CBI Nursery Field 5

(photo: Sawit Sumbermas)

Total CPO and derivative products last year is estimated to have reached 31.5 million tons (including biodiesel and oleochemical), rose 5 percent from 30 million in previous year.

The average CPO price in 2014 stood at US$818.2 per metric ton, fell 2.8 percent from previous year of US$841.71 metric tons.

India, European Union and India remained as the largest CPO exports destinations of Indonesia last year. However, the exports volume to those countries edged down. CPO exports to India reached 5.1 million tons, down 17 percent from previous year of 6.1 million tons.

The decline was a result of weakening of Indian currency rupee against US dollar as well as the decision by the Indian government to raise vegetable oil imports from 2.5 percent to 7.5 percent and refined oil import tax to 15 percent from 7.5 percent.

CPO exports to China reached 2.43 million tons in 2014, dropped 9 percent from 2.67 million tons in previous year. The decline was partly attributable to slowing down of the Chinese economy, which made it difficult for traders and business players to get loan from bank.

Interestingly, CPO and CPO derivative exports to European Union edged up by 3 percent to 4.13 million tons from 4 million tons in previous year, despite massive black campaign against Indonesian CPO producers by environmental groups, which accusing some Indonesian palm oil companies for degrading the forest and failed to implement sustainable plantation scheme.

CPO exports to Middle East countries showed encouraging rend. According to the GAPKI data, CPO exports to the Middle East countries in 2014 rose 16 percent to 2.29 million tons from 1.98 million tons in previous year.

CPO exports to Pakistan surged 84 percent in 2014 from previous year, although in volume terms is smaller compared to exports to China or India. Indonesia’s CPO and derivative products to Pakistan in 2014 surged to 1.66 million tons, from 903,000 tons in previous year.

CPO and CPO derivative products to the US also showed encouraging trend. Last year, Indonesia exported 477,200 tons of CPO to US, up 25 percent from previous year of 381.400 tons.

In term of value, as of November 2014, the CPO exports value reached US$19.35 billion. The full year data is not available yet, however GAPKI projected that the total CPO exports value in 2014 is estimated to reach US$20.8 billion, up 8 percent from previous year of US$19.23 billion. (*)

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