Home » Business » RI Palm Oil Production Dropped 9% Reaching 23.5 Million Tons

RI Palm Oil Production Dropped 9% Reaching 23.5 Million Tons

Jakarta, CNBC Indonesia – The Indonesian Palm Oil Association (GAPKI) or the Indonesian Palm Oil Association (IPOA) revealed that the production of the palm oil industry has contracted.

In semester I-2020, the production of Indonesian palm oil (crude palm oil / CPO) and its derivatives was recorded at 23.5 million tons, down 9% from the production in semester I-2019 which was recorded at 25.88 million tons.

In comparison, CPO production in 2019 reached 51.8 million tons, an increase of 9% compared to 2018 which only reached 47.3 million tons even though last year was hampered by a prolonged dry season and forest fires.


Chairman of Gapki Joko Supriyono said from the side of palm oil production, in January-June 2020 it was still contracting compared to January-June 2019 by 9% and the combined product of palm oil and other minus 10%.

“However, judging from the January to June trend, the graph continues to rise, although compared to last year’s achievement it is still a contraction,” he said, in a press conference broadcast via Gapki’s YouTube account, Wednesday (12/8/2020).

The Vice President of PT Astra Agro Lestari Tbk (AALI) said the main factor in the decline in production was not caused by the Covid-19 pandemic. The decline was more due to a series of dropping palm prices in 2018 which led to suboptimal plant care and prolonged dry weather in 2019.

Photo: Gapki
Gapki-

However, he is optimistic that palm oil production in the next quarter will increase even though he cannot predict the figure.

Joko revealed that amid the Covid-19 pandemic and the contraction of the domestic economy, the performance of the palm oil industry was still quite positive.

Throughout the first semester of 2020, palm oil exports were recorded at 15.50 million tons from 17.56 million in the same period last year. while domestic consumption was recorded at 8.66 million tons.

“The contraction is 11% compared to the same period last year considering that on a monthly basis it was never higher than the monthly achievement last year,” said Joko.

Last year, exports of CPO and its derivatives reached 36.17 million tons, up 4.2% from 34.70 million tons in the same period the previous year.

Surplus

On the other hand, Joko also said that there is still a positive side to the performance of the mustard industry, seen from the role of palm oil in the trade balance from 2015 to 2020.

Gapki data noted that the value of palm oil exports this year until June 2020 or semester I-2020 reached US $ 10.060 billion. Meanwhile, throughout 2019 the export value of Indonesian palm oil reached US $ 20.22 billion, although it was down from 2018 which was US $ 23.33 billion and also decreased from the 2017 position of US $ 24.94 billion.

“The palm oil industry is still good, yes, the end of this year should not be far from 2019 figures [US$ 20,22 miliar]. This is extraordinary, amidst Indonesia’s economic growth which contracted in the second quarter of 2020, palm oil still recorded an increase. From the balance sheet, Indonesia still has a surplus of US $ 9 billion in non-oil and gas June, but it contributed US $ 10 billion in palm oil exports, so if there is no palm oil it could be minus [nonmigas], “he said.

“We are grateful that palm oil still contributes positively to our economy,” he said.

[Gambas:Video CNBC]

(bag bag)


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