The Indonesian Palm Oil Council (DMSI) said that currently exports of crude palm oil (CPO) were minimal due to falling demand from abroad. The Acting Chairman of the Indonesian Palm Oil Council, Sahat Sinaga, revealed that the slowdown in exports had caused a buildup of CPO in the country.
The amount of CPO that has piled up is 6.17 million tonnes from all over Indonesia. The CPO is ready for export from November 2022 to January 2023.
“The entrepreneur has PE arrears of 6.17 million tons, 6.17 million tons, not used as export material. Starting from last year until now. Why not export? There are 6.17 million tons ready for export, don’t want to export, abroad again recession,” he explained, in a DMSI press conference, Challenges and Development of the 2023 Downstream Palm Oil Industry, at the Thamrin Business Center, Central Jakarta, Tuesday (7/2/2023).
On that occasion, Sahat also alluded to a statement from the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan who asked producers to save part of their CPO supply. According to Sahat, currently it is still difficult for producers to export.
“It says don’t export yet, there really isn’t any exports. The market is still weak. It’s said that some will be held first, let alone exports,” he continued.
Sahat continued, on the other hand, if there were no exports, the market conditions would be complicated. So according to him there should also be incentives for CPO producers that make it easier to export. The entrepreneur requested that the export duty (BK) of US$ 52 per tonne be suspended temporarily.
“This is postponed until Lebaran is over, to expedite exports,” he concluded.