JAKARTA (RambuEnergy.com) – Indonesian crude palm oil (CPO) and CPO derivative product exports are projected to increase to 27 million tons this year, up 7.6% from 25.1 million tons in 2016, according to the Indonesian Palm Oil Association (GAPKI).
“As for 2017, the exports (of CPO and derivative products) are still relatively conservative,” Secretary General of GAPKI Togar Sitanggang said at a press conference, as reported by state news agency Antara.
According to GAPKI data, the palm oil exports are comprised of crude palm oil (CPO) totaling 5.5 million tons, CPO refined products 18 million tons, palm kernel oil (PKO) and refined PKO 1.5 million tons, biodiesel 500,000 tons and oleo chemical 1.5 million tons.
Crude palm oil and derivative products exports reached 26.4 million tons in 2015, but fell 5% to 25.1 million tons in 2016, GAPKI said.
Chairman of GAPKI Joko Supriyono said the decline of exports last year was due to slow-down of demand from overseas market as well as lower domestic production.
In 2016, crude palm oil and derivative products output reached 34.5 million tons, compared to 35.5 million tons in previous year.
“In 2017, the hope is that the government helps resolve obstacles that hampering CPO exports in various countries, therefore the exports target is achieved,” said Joko.
He said in addition to lower CPO and derivative product exports, the mandatory B-20 program has gone ahead consistently. Only exports to the US and some EU countries recorded an increase.
CPO exports to the US surged 43% from 758,550 tons in 2015 to 1.08 million tons in 2016. Exports to EU also rose to 4.4 million tons in 2016, from 4.2 million tons in 2015.
In term of value, crude palm oil and its derivative products exports raised USD18.1 billion foreign exchange reserves last year, down 3% from USD18.67 billion in 2015.
The largest importers of Indonesia’s CPO and its derivative products were India, China and Pakistan. China imported 3.23 million tons of CPO and derivative products last year, down from 3.99 million tons in previous year.
Meanwhile, Pakistan imported 2.07 million tons of CPO and derivative products last year, down from 2.19 million tons, while India imported 5.78 million tons last year, down slightly form 5.8 million tons.
In 2017, GAPKI projected domestic CPO production to reach 35.5 million tons this year, while palm kernel oil (PKO) 3.2 million tons. (*)