Oil Palm Production Next Year May Drop

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  • REUTERS/Roni Bintang

    REUTERS/Roni Bintang

    TEMPO.CO, Jakarta - The Indonesian Palm Oil Producers Association (GAPKI) spatial planning and agrarian chairman Eddy Martono said oil palm production next year will likely decrease. “I’m worried that production drops and demand rises,” said Eddy on Wednesday.

    Eddy said he was concerned with meeting the needs of oil palm next year as this year’s long El Nino would decrease oil palm production next year.

    Oil palm can provide national income around Rp200 trillion to Rp300 trillion every year from its export. This has not even been added with domestic demands for biodiesel feedstocks next year.

    Eddy predicted that there will be allocation of 5.5 million tons to seven million tons for domestic oil palm production. The amount of demands will depend on the types of biodiesel that will be produced, whether B15 or B20. Demands for both B15 are 5.5 million tons, while demands for B20 are seven million tons.

    Oil palm production is also needed to meet other demands, such as cosmetics and vegetable oil, which are seven million tons. “If demands for biodiesel are six million tons, there may be 13 million tons of domestic demands,” he said.

    The rest of the oil palm production will be exported. Last year, the total exported amount was 23 million tons.

    Oil palm plantations in Indonesia have been cultivated for 100 years. Based on plantation directorate general’s data, Indonesia has 10.9 million hectares of oil palm plantations. From that amount, around 42 percent or 4.5 million are owned by farmers while the rest 6.4 million or 58 percent are privately owned or owned by state-owned companies.


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