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Producers expect palm oil exports to decline by 4 percent this year
The Indonesian Palm Oil Association (GAPKI) says the drop is the result of a weakened global economy caused by the prolonged Russia-Ukraine war, conflicts in Middle East and a slowing Chinese economy.
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A worker harvests oil palm fruit on Feb. 4, 2023, in Pucok Lueng, West Aceh regency, Aceh. Last year, the total value of palm oil exports dropped 19 percent to $28.45 billion from $35.15 billion in 2022. (Antara/Syifa Yulinnas)
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ndonesian producers project that palm oil exports will drop by 4 percent compared to last year, citing factors related to prolonged geopolitical tensions and slowing economic growth in China, the association said.
Indonesian Palm Oil Association (GAPKI) chairman Eddy Martono said on Monday that the country may only export around 29 million tonnes of crude palm oil (CPO) and refined palm oil this year, down from 32 million tonnes last year.
He also expects palm oil prices to hover between US$900 and $1,000 per tonne, meaning total export value could reach around $30 billion this year.
“The drop is the result of a weakened global economy caused by the prolonged Russia-Ukraine war. In addition, there are conflicts in the Middle East and a slowing Chinese economy,” Eddy said, as quoted by Kontan.
Read also: Weaker global economy, commodity demand cut into 2023 exports
Palm oil and related products contributed 11.71 percent to Indonesia’s total exports last year, just below coal, which contributed 17.94 percent, Statistics Indonesia (BPS) data shows.
Last year, the total value of palm oil exports saw a 19-percent drop to $28.45 billion from $35.15 billion in the previous year, the same data shows.
