Indonesian Palm Oil Export to China Seen Rising

Palm oil export from Indonesia to China has shown significant growth as China decreased soybean import from the US following the trade war between the two countries. Indonesian Palm Oil Association (Gapki) recorded China palm oil import from Indonesian climbed 63 percent to 541.81 thousand tons on October 2018 from 332.52 thousand tons on September 2018. “It was influenced by Chinese policy to cut down soybean import from the US as a result of the trade war between the two countries. Beside, China started to ban rapeseed meal for ruminants and poultries from India,” Mukti Sardjono, Executive Director of Gapki said, Monday (3/12/2018). Mukti said that Chinese policy to ban rapeseed meal import from India will also give an opportunity for Indonesian palm kernel meal to fill the empty slot in Chinese market. Palm kernel meal can be used as meal for ruminants and poultries. A part from that, China biodiesel import from Indonesia has also seen at record on demand to 637.34 thousand tons on May-October 2018. Mukti said this showed a good record since China promoted use of biodiesel to reduce air pollution. Chinese has implemented B5, fuel with 5 percent biodiesel content, in Shanghai as a pilot project for biodiesel mandatory program. Gapki has also recorded that export volume of Indonesian palm oil (CPO and its derivatives, oleochemical, and biodiesel) increased 5 percent to 3.35 million tons on October 2018 from 3.19 million tons on September 2018. Meanwhile, volume export of  CPO, Palm Kernel Oil (PKO) and its derivatives (not included oleochemical and biodiesel) reached 3.14 million tons, increased 5 percent form 2.99 million tons on September 2018. ***