Indonesia, a leading palm oil producer, has seen substantial growth in the export of palm and nipa palm waste products, such as broomsticks. Global demand for these products grew positively in 2023. Data from the Central Bureau of Statistics, analyzed by the Indonesian Eximbank (LPEI), revealed that the export value of these products rose by 11.44% year-on-year, reaching USD 29.32 million from USD 26.31 million in 2022. Export volumes also increased by 15.97% to 70,080 tons from 60,430 tons. This export growth is driven by increased demand from key markets. Exports to India rose by USD 1.16 million, totaling USD 17.04 million in 2023, while exports to Pakistan increased by USD 1.84 million, reaching USD 2.17 million. However, LPEI's Senior Economist, Donda Sarah Hutabarat, noted a decrease in export values for the first half of 2024, particularly to India, Japan, and China, due to high global interest rates affecting the property sector and reducing demand for furniture and home decor. Despite this, there are rising opportunities in markets like Pakistan, the Philippines, Vietnam, South Korea, and Iran. Indonesia is encouraged to expand its distribution networks and enhance product quality to tap into these non-traditional markets. Historically, Indonesia's palm and nipa palm waste products have shown strong competitiveness with a Revealed Comparative Advantage (RSCA) of 0.79, though still behind Sri Lanka's 0.99.
Indonesia's trade balance for these products has consistently recorded a surplus, reaching USD 29.14 million in 2023, up from USD 26.27 million in 2022. In 2023, Indonesia was the world's second-largest exporter of palm and nipa palm waste products, accounting for 12.42% of global exports, behind China. From January to June 2024, exports dropped by 27.59% year-on-year to USD 10.18 million, with volume decreasing by 18.91%. However, exports to Pakistan, the Philippines, and Vietnam saw significant increases. Rianto Aritonang, an alumnus of LPEI's Coaching Program New Exporters (CPNE), successfully exports palm waste products to seven countries. His company, CV Kahaka Internasional, has exported 8,500 metric tons since 2020. Utilizing LPEI's Export Working Capital Credit for SMEs, Rianto aims to expand exports to Europe and Australia, focusing on environmentally friendly products. This initiative not only reduces waste but also benefits palm farmers, who now collect palm fronds for additional income. CV Kahaka Internasional collaborates with over 300 farmers across Sumatra and Java, enhancing their livelihood and ensuring a sustainable supply chain.
