The Indonesian Oleochemical Producers Association (APOLIN) projects that the export value of Indonesian oleochemical products could reach USD 54 billion by 2030, driven by the downstream development of the palm oil industry in Indonesia. APOLIN's Secretary General, Rapolo Hutabarat, stated that the increase in oleochemical export value is expected to be fueled by diverse demands from industries such as cosmetics, food and beverage, and pharmaceuticals. Rapolo forecasts that the oleochemical market value in 2030 is estimated to reach USD 5.4 billion, with an annual growth rate of approximately 6%. However, he noted a previous decline in oleochemical export value due to the plummeting global commodity prices by USD 3.5 billion, with a volume estimated at 4.2 million tons. He emphasized that the largest oleochemical export market is in the Asia-Pacific region, valued at USD 16 billion, while the rest is directed towards the European Union and America.
The main products involve fatty acids, fatty alcohols, and others. He also proposed that Indonesia explore markets in Africa, considering its large population but low GDP," said Rapolo during a speaker session at the Palm Downstream Industry Journalists Workshop, attended by InfoSAWIT, on Thursday (1/2/2024) in Bandung. However, Rapolo also revealed several challenges faced by the Indonesian downstream palm oil industry, including the lack of attention to certain products such as tocopherols and beta-carotenes. Although their market shares are significant, each approximately USD 1.3 billion and USD 4.7 billion, there are currently no oleochemical producers in Indonesia manufacturing both. Rapolo emphasized that Indonesia should leverage its natural resources to fill this gap, particularly by involving State-Owned Enterprises (SOEs) in the pharmaceutical sector.
