Palm oil export in April 2023 decreased by 500 thousand tonnes

This article has been translated by PwC Indonesia as part of our Plantation News Highlights service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily - Ekspor minyak sawit April 2023 turun 500 ribu ton

16 June 2023

By: Ridho Syukra

Jakarta - The total exports of palm oil products in April 2023 decreased by 19.2% or around 500 thousand tonnes compared to the previous month. In detail, exports of crude palm oil (CPO) decreased by 36.3%, refined CPO products by 15.6%, refined palm kernel oil (PKO) by 36.2%, oleochemicals by 12.0%, and biodiesel by 73.9%.

Based on the destination, exports to China decreased by 315.3 thousand tonnes from 647.7 thousand tonnes to 332.4 thousand tonnes (-48.7%), exports to African countries (excluding Egypt) decreased by 143 thousand tonnes from 302.8 thousand tonnes to 197.3 thousand tonnes (-47.3%), exports to India decreased by 99 thousand tonnes from 252.1 thousand tonnes to 160.1 thousand tonnes (-36.5%), and exports to the United States of America (USA) decreased by 59 thousand tonnes from 198.4 thousand tonnes to 139.5 thousand tonnes (-29.7%).

“The export volume in April was the lowest since February 2022, except for May 2022 when exports were banned. However, on an annual basis, total exports until April 2023 increased by 19.9% compared to 2022,” Indonesian Palm Oil Association (IPOA) Executive Director Mukti Sardjono said in his official statement that was received by Investor Daily in Jakarta on Thursday (15/6).

The decrease in the export volume was also followed by the decrease in CPO price from US$1,031/tonne according to CIF Rotterdam in March to US$1,025/tonne in April. So, the export value of palm oil products decreased from US$2,420 million in March to US$1,961 million in April, which is the lowest value in the last 11 months.

“Compared to [the period] in 2022 until April 2022, the export value in April 2023 decreased by 23.0%,” he stated.

Domestic consumption rose by 4.7% in April compared to March. The largest domestic consumption increase is in the biodiesel industry (+8.7%), the oleochemical industry (+7.5%), and the food industry (+0.9). Compared to the total consumption until April 2022, consumption until April 2023 increased by 19.0%.

CPO and PKO production in April decreased by 5.1% compared to March due to seasonal factors and Eid holiday. However, CPO and PKO production until April 2023 increased by 8.1% compared to CPO and PKO production until April 2022.

With the composition of production, export, and domestic consumption, the final supply in April increased by 15.8% compared to the final supply in March.

The Indonesian palm oil industry is currently facing a drought in several oil palm plantations centres.

To address this natural phenomenon, all IPOA members have prepared facilities and infrastructure along with human resources to prevent and handle forest and land fires around oil palm plantations.

The preparation is carried out together with the Anti-Fire Community (MPA) around the plantations, local governments, the police, and the Indonesian National Armed Forces (TNI).

Child labour-free palm oil industry

On World Day Against Child Labour (WDCL) on 12 June 2023, the Labour Ministry introduced “Child Labour-free Oil Palm Plantations to Realise Child Labour-free Indonesia.”

IPOA Human Resources Development Division Head Sumarjono Saragih was present on-site to talk about “IPOA’s Role in Supporting the Eradication of Child Labour in Oil Palm Plantations.”

IPOA has implemented several initiatives to promote sustainable palm oil through decent work. With its partners, IPOA has published a good practice guidebook called “Child-friendly Indonesian Palm Oil”.

IPOA member companies are complying with the regulation that bans child labour as stipulated in Law No. 13/2003 on Manpower. Furthermore, IPOA took the initiative to share about good practice to all farmers so that the entire Indonesian palm oil industry meets the sustainability standards.