Palm fruits (Photo: www.checkout.ie)
Rising demand from China, the Middle East and African markets offset declines in demand from Indian and European markets, said GAPKI Chairman Joko Supriyono.
India, the world’s top CPO buyer, recorded the biggest decline among export destinations last year following higher import tariffs on Indonesian shipments compared to those from rival Malaysia.
Supriyono said Indonesia produced 47.1 million tonnes of CPO and 4.6 million tonnes of palm kernel oil last year. By comparison, the production of CPO and kernel oil stood at 43 million tonnes and 4.3 million tonnes in 2018, respectively.
By the end of 2019, Indonesia held about 4.6 million tonnes of palm oil stockpiles.
Supriyono said production growth in 2020 is expected to slow as drought and a cut in fertiliser usage last year will likely affect yield.
Indonesia can use 8.3 million tonnes of CPO to produce biodiesel, which may reduce heavily the amount of palm oil available for export, said GAPKI’s executive director Mukti Sardjono./.