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Indonesia’s CPO production in 2018 up by 12.65%, exports increase

JAKARTA ( – Indonesia’s crude palm oil (CPO) recorded an increase of 12.65% in 2018 to 43 million tons (Mt) from 38.17 Mt in the previous year, mainly driven by higher exports of derivative CPO products, the Indonesian Federation of Palm Oil Producers (GAPKI) said Wednesday (Feb. 6).

The total production of CPO and palm kernel oil (PKO) reached 47.43 Mt, up from 41.22 Mt in the previous year.

Of the production, 34.71 Mt were exported, increased 8% from the previous year of 32.18 Mt, said Joko Supriyono, chairman of GAPKI) at a press conference.

The significant rise was recorded by biodiesel exports, recording a surge of 851% to 1.56 Mt from 164,000 tons in the previous year. The rise was due to a recovery of biodiesel demand after Indonesia won an anti-dumping dispute with EU at WTO.

The other derivative CPO products were also increased, including refined CPO and lauric oil, which rose by 7% to 25.46% tons in 2018 from 23.89 Mt in the previous year.

Oleochemical exports also rose 16% to 1.12 Mt in 2018 from 970,000 tons in the previous year. In addition, CPO products declined by 8% to 6.56 Mt from 7.16 mt in the previous year.

Indonesia’s exports to certain countries were higher than in the previous year, including to China, Pakistan, Bangladesh and some African countries and USA. Exports to China rose 18%, USA up 3% and Bangladesh jumped 18%. Meanwhile, exports to the European Union and India declined.

Exports to India was due to the decision of the Indian government to raise imported CPO.

The average price of CPO last year stood at US$595 per metric ton or 17% lower than in the previous year of US$714.3 per metric ton. The decline was due to a rise of CPO stocks as a result of a trade war between the US and China as well as slower world economic growth,

According to GAPKI, CPO exports contributed US$20.35 billion in foreign exchange last year, slightly lower than in the previous year of US$22.97 billion.

As for 2019, GAPKI projects Indonesia’s CPO and PKO production to rise by 4-5% this year. He said the production this would return to normal average annual increase.

Last year’s production, he said, was recorded given as production returned to normal level after experienced El Nino in the previous years. (*)


Written by Staff Writer, Edited by Roffie Kurniawan (Email:







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