This is the culprit that makes farmers and palm oil mills gasp

Jakarta, CNBC Indonesia – Indonesia’s palm oil exports have not increased. Even according to a report by the Indonesian Palm Oil Association (GAPKI), the data shows a decline.

Last April, the initial stock was recorded at 5.683 million tons with production (CPO and CPKO) reaching 4.255 million tons. Meanwhile, the amount of imports at that time was 5 tons, and the stock at the end of the month was 6.103 million tons. Meanwhile, local consumption was only recorded at 1.752 million tons.

The number of stocks increased from March 2022 and April 2021 which amounted to 5.683 million tons and 3.269 million tons, respectively. The stock figure at that time was the highest in the last 6 years.

“If you look at the stock data at the end of last year, our stock never touched 5 million tons. So if the current stock is 6 million tons, this is an emergency. This is a record and a maximum. That’s why many PKS (palm palm factories) have closed “CPO production can no longer be accommodated. As a result, farmers’ FFB cannot be accommodated anymore and farmers’ FFB prices drop and many do not harvest fruit anymore,” said Executive Director of Palm Oil Agribusiness Strategic Institute (PASPI) Tungkot Sipayung to CNBC Indonesia.

Secretary General of Gapki Eddy Martono stated that exports have not run normally. Previously, President Joko Widodo (Jokowi) decided to ban the export of cooking oil and its raw materials (CPO and its derivatives) from April 28 to May 22, 2022.

The policy was protested, because it could trigger the buildup of CPO tanks in the PKS. Besides that, it can also slow down the absorption of the processing or refinery industry.

Then this month until July 31, the government launched a program to accelerate exports or ‘flush out’.

“CPO exports have started to run, although not yet normal, it is estimated that it will only be normal in July. The stock of 6.1 million tons is indeed quite high. I don’t dare say it’s a record because I have to check past data. Our average stock is 4 million tons,” said Eddy.

If you follow GAPKI data until 2016, the following is the movement of the national palm oil stock every year until April 2022:
– 2016 production: 35.57 million tons export: 26.57 million tons stock: 3.75 million tons
– 2017 production: 41.98 million tons export: 32.18 million tons stock: 4.02 million tons
– In 2018 production: 47.38 million tons export: 34.71 million tons stock: 3.26 million tons
– In 2019 production: 51.82 million tons export: 36.17 million tons stock: 4.59 million tons
– Year 2020 production: 51.57 million tons export: 34.00 million tons stock: 4.86 million tons
– 2021 production: 51.3 million tons export: 34.23 million tons stock: 3.57 million tons
– In 2022 (as of April 2022) production: 16.46 million tons Export: 8.38 million tons Stock: 6.10 million tons.

[Gambas:Video CNBC]