Indonesia's palm oil export drifts down 11 pct in H1 as epidemic suppresses demands

Source: Xinhua| 2020-08-13 19:42:06|Editor: huaxia

JAKARTA, Aug. 13 (Xinhua) -- The volume of the crude palm oil (CPO) export from Indonesia edged down in the first half of this year as the novel coronavirus pandemic has eroded global demands of the commodity.

The Indonesian Palm Oil Association (GAPKI) said that the shipment of the crude palm oil abroad shrank by 11 percent to 15.5 million tons from January to June annualized, local media reported on Thursday.

The lockdown policies imposed by foreign nations, particularly the main buyers of Indonesia's crude palm oil, have been ravaging business activities which culminated to the weakening of the demands, GAPKI's Chairman Joko Supriyono said.

Still, rising global prices of the commodity have helped drift up the value of the Indonesian crude palm oil in the period by 6.4 percent to 10.06 billion U.S. dollars on the yearly basis, the chairman said on Wednesday.

GAPKI's Executive Director Mukti Sardjono projected that the global demands for the crude palm oil and its refined products would immediately commence rebound along with the pickup in economic activities in the importing nations.

Indonesia is the world's largest producer and exporter of crude palm oil.

The country, which has about 12 million hectares of oil palm plantations across the vast-archipelagic nation, produced 47.43 million tons of palm oil in 2019, nine percent higher than the outputs in 2018, according to data from the GAPKI.

Indonesia will use more of the country's crude palm oil products as raw materials for the biodiesel fuel and aviation turbine fuel. Enditem