In a promising development for Indonesia's palm oil industry, data from the Indonesian Palm Oil Association (Gapki) reveals an impressive 11.4% surge in palm oil exports in October 2023. The total export volume reached 3 million tons, a substantial increase from the previous month's 2.7 million tons. Notably, the growth was primarily driven by a remarkable 21.9% uptick in oleochemical exports, essential for personal care and cosmetics production. The executive director of Gapki, Mukti Sardjono, emphasized this positive trend, stating that oleochemical exports soared from 333,000 tons in September to an impressive 406,000 tons in October. Additionally, crude palm oil (CPO) exports experienced a notable rise of 13.3%, reaching 264,000 tons. Despite a decline in biodiesel exports from 21,000 tons in September to 5,000 tons in October, the overall performance for the first ten months of 2023 showcases resilience. The cumulative palm oil exports during this period amounted to 27.6 million tons, equivalent to approximately USD 23.5 billion. Indonesia's palm oil production for January-October 2023 stood at 45.8 million tons, with 41.8 million tons constituting CPO. Indonesia, alongside Malaysia, holds the position of the world's largest palm oil producer.

While the industry faces challenges, including the European Union's (EU) anti-deforestation law, collaborative efforts are underway. The EU Deforestation Regulation (EUDR) poses requirements such as geolocation coordinates to ensure palm oil products entering the EU market are not from deforested land. Indonesia, in partnership with Malaysia, has expressed concerns over the potential impact on smallholders. A joint task force involving Indonesia, Malaysia, and the EU has been established to address these concerns and identify viable solutions. Chief Economic Affairs Minister Airlangga Hartarto emphasized diplomatic efforts, including visits to Brussels, to engage with EU authorities and prevent regulations that might adversely affect the palm oil industry. Despite challenges, the positive export figures underscore the resilience and competitiveness of Indonesia's palm oil sector.

Source: https://jakartaglobe.id/business/indonesian-palm-oil-exports-up-114-pct-in-october