The Palm Scribe

GAPKI Sees 2021 Indonesian Palm Oil Exports to Bring More than $30 billion

Indonesia’s palm oil exports this year is expected to contribute around $33,5 billion (Rp477.22 trillion), up from last year’s slightly more than Rp300 trillion, an executive of the Indonesian Association of Palm Oil Producers (GAPKI) said Wednesday (17/11).

 

“For this year, approximately,…what is certain is that it will be more than 30 billion US dollars,” GAPKI Deputy chairman III Togar Sitanggang told a press conference to announce the convening of the 17th  Indonesia Palm Oil Conference and 2022 Price Outlook on December 1-2, 2021.

 

He estimated that palm oil export would bring in $33.5 billion, or “almost 500 trillion rupiah in 2021, the projection is.” Sitanggang added that by end of September 2021, palm oil exports had already reached 26-27 billion dollars.

 

GAPKI Chairman Joko Supriyono told the same press conference that in 2021, the Indonesian palm oil industry enjoyed a golden era with global CPO prices high, even reaching the highest ever level in October. He said that the average crude palm oil (CPO) price in 2021 so far has remained above $1,000 per metric ton and it even reached the highest ever level in October this year at $1,390 per metric ton.

 

Supriyono said that this year would be the second year in a row that the annual conference would be held virtually. The Covid-19 Pandemic last year forced the annual conference to be held virtually for the first time in its history.

 

He said that palm oil prices continued to soar because of the weakening production in the main producing countries. Indonesia and Malaysia, respectively the first and second largest palm oil producers in the world, have already reported drops in their palm oil production in recent months. He also added that another factor for the high palm oil prices was that the production of a number of rival vegetal oil such as soy, rapeseed and sunflower, were also down.

 

However, he said that the situation may still change next year and it was therefore important for the conference to take place to hear experts and their predictions. “The right strategies are needed to safeguard the stability of prices and competitiveness in this situation and therefore IPOC will discuss the sustainable economic recovery strategies, especially in relations to the role of palm oil,” Sitanggang said.

 

Chairperson of the IPC organizing committed, Mona Surya, told the press conference that the conference this year took the theme of “Role of Palm Oil Industry Towards Sustained Economic Recovery”

 

“The enthusiasm remains high and there has already 900 registered participants up until today,” Surya said, adding that she was certain the next two weeks would see about 300 to 400 other participants register. Last year’s conference was attended by some 1,100 participants from 32 countries, she said.

 

Besides discussing the government’s strategies to attain a sustainable economic recovery, the conference will also discuss the opportunities of palm oil markets in a number of export destinations, the supply and demand of palm oil and other vegetal oil, global market trends and the projection of palm oil prices for 2022, she said.

 

Indonesian President Joko Widodo is scheduled to give a special address at the beginning of the conference, followed by a keynote speech by Coordinating Minister for Economic Affairs, Airlangga Hartarto who will also officially open the conference.

 

As in the previous years, IPOC will continue to feature speakers from the world’s palm oil exports to discuss price trends and the global issues that affected them. Among the speakers are regulars such as Dorab Mistry from Godrej International Ltd, James Fry from LMC International) and Thomas Mielke from Oil World.

 

Specifically for this year, the Indonesian ministers of finance, trade and health are also expected to each address the conference to speak on the government’s strategy to reach a sustainable economy recovery.

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