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Indonesia sees jump in export value of palm oil products in 2016
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A worker checks fresh oil palm bunches on a truck soon after harvest from PT Wanasawit Subur Lestari in Pangkalan Bun, East Kalimantan. (JP/Dhoni Setiawan)
I
ndonesia saw an increase in the export value of its palm oil products throughout 2016 thanks to a recent surge in global crude palm oil (CPO) prices.
Data from the Indonesian Oil Palm Estate Fund (BPDP-KS) shows that palm oil exports decreased by 2 percent annually to 25.7 million tons last year. However, the total export value soared by 8 percent to US$17.8 billion.
Such a positive trend is attributed to the rise in CPO prices, which saw a 41.4 percent increase to $789 per ton in December from $558 per ton in January last year.
“It is good news because Indonesia is widely known as a major exporter of palm oil products. Nonetheless, we have also warned all exporters not to be overconfident. High prices will eventually weaken our competitiveness in the overall vegetable oil market, not just the palm oil market,” BPDP-KS president director Bayu Krisnamurthi said in Jakarta on Tuesday.
“As we know, Indonesian palm oil competes with soybean oil in the global market. Hence, if the price of palm oil is too high, its competitiveness will also be reduced.” (bbn)
