The downstream policy in the palm oil industry has been successful, as indicated by the data from GAPKI (Indonesian Palm Oil Entrepreneurs Association), showing that palm oil product exports from January to May 2023 reached 12.8 million tons. Out of this, 94% or 12.1 million tons were downstream palm oil products, including derivative products such as processed CPO, CPKO, biodiesel, and oleochemicals, while raw palm oil (CPO and CPKO) exports accounted for 6% or 764 thousand tons of the total exports during the same period.
Although the total export volume increased compared to the same period last year, the value of the exports was lower at USD 11.72 billion, compared to USD 13.86 billion in January to May 2022. This decline in export value is attributed to the decrease in CPO prices this year. However, there have been price increases in actual transactions to certain countries like India, Bangladesh, several Asian countries, and the United States.
Despite the challenges in pricing, the implementation of the downstream policy has proven to be successful in promoting the export of processed palm oil products, providing added value to the industry and contributing to Indonesia's foreign trade performance.
