Jakarta – Indonesia produced 41.98 million tons of palm oil in 2017 or up 18 percent compared to the previous year, Secretary General of the Indonesian Association of Palm Oil Producers (GAPKI), Togar Sitanggang said on Tuesday (30/01/2018).
ILLUSTRATION. Palm oil workers. CPO price for 2017 stood at $7145.3 per metric ton, or two percent higher that the average in the previous year.
Speaking at a press conference at the GAPKI headquarters, Sitanggang said that Crude Palm Oil (CPO) accounted for 38.17 million tons while Palm Kernel Oil (PKO) totaled 3.05 million tons.
He also said that average CPO price for 2017 stood at $7145.3 per metric ton, or two percent higher that the average in the previous year.
“In 2017, the performance of palm oil was really good, production rose significantly,” Sitanggang said.
Indonesian palm oil exports in 2017 reached $22.97 billion, or 26 percent up compared to the previous year, he said.
“The value of palm oil exports in 2017 was the highest ever in the history of Indonesian palm oil exports,” GAPKI chairman Joko Supriyono said.
GAPKI data showed that in 2017, almost all Indonesian palm oil export destination countries showed a rise in demand. India, for example, showed a significant increase in volume purchased as well as in percentage increase. India’s demand for Indonesian palm oil stood at 7.63 million tons in 2017, or up 32 percent from the previous year.
In 2017, Indonesian palm oil exports to African countries also rose by 50 percent to 2.29 million tons, to China, exports rose by 16 percent to reach 3.73 million tons while countries of the European Union saw their imports up by 15 percent to 5.03 million tons.
Pakistan saw imports of the Indonesian commodity rose by seven percent to 2.21 million tons, The United States increased import by 9 percent to 1,8 million tons, Bangladesh imports soared by 36 percent to 1.26 million tons while the Middle East market saw imports of Indonesian palm oil rose by 7 percent to reach 2.12 million tons in 2017.
GAPKI said that the improving performance could not be separated from the improved handling of the threats of ground and forest fires by all sides in 2017. Sitanggang said that there were almost no substantial fires in palm oil plantations in 2017.
He also aired optimism that the sector will continue to perform well in 2018, especially in view of the improving growth of the Indonesian economy. He estimated that CPO production could grow by 10 percent this year. Exports in 2018 were also expected to grow by about the same percentage.
“Stock remained stable from early in the year and only rose slightly at the end of the year. The stock of Indonesian palm oil by end of 2017 stood at 4.02 million tons,” Sitanggang said.