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Indonesia 2024 palm oil output seen rising by 5% year-on-year – GAPKI
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27/02/2024 (XM), Jakarta - Indonesia's palm oil output this year is expected to rise by 5% year-on-year to 57.6 million metric tons as more newly matured crops come into fruition, the Indonesia Palm Oil Association (GAPKI) said on Tuesday.

 

In 2023, palm oil output grew by 7% from the previous year to 54.84 million tons including 50.07 million tons crude palm oil (CPO), despite the moderate dry weather El Nino pattern that hit the country.

 

"There were additional 300,000 hectares (741,316 acres) of maturing areas that started to be harvested in 2023, so the output in 2023 increased," GAPKI chairman Eddy Martono told reporters.

 

Exports of Indonesian palm oil products in 2023 dropped 2.7% on a yearly basis to 32.2 million metric tons from 33.1 million tons shipped in 2022 as domestic demand increased after Indonesia raised its mandatory biodiesel blending to 35% from 30% last year.

 

GAPKI previously said 2022 palm oil export stood at 30.25 million tons and the latest figures were revised based on statistic bureau data.

 

GAPKI estimated 2024 export figure to stagnate at around 32-33 million tons as domestic demand expected to continue growing.

 

"If production could not be boosted, while consumption continue to grow, there will be a competition between food and energy. At the end, exports would be sacrificed," he said.

 

Indonesia put a moratorium on palm oil plantation in 2018, after launching smallholders replanting scheme in 2016 in an effort to boost output without opening new areas.

 

However, realisation of the scheme have been slow due to land legality issue and reluctance from farmers afraid of losing their source of income in the first three years after replanting.

 

The government is currently considering plans to double its palm oil replanting subsidy to 60 million rupiah ($3,837.54) per hectare from currently 30 million rupiah to boost farmer participation in the programme, chief economic minister Airlangga Hartarto said on Tuesday.

 

Indonesia's palm oil inventories by end of last year stood at 3,14 million tons, down 14.79% on a yearly basis.

 

($1 = 15,635.0000 rupiah)

 

Source: Reuters

 

https://www.xm.com/research/markets/allNews/reuters/indonesias-2023-palm-oil-palm-kernel-oil-exports-at-322-mln-metric-tons-53775131