Palm Oil Export to 5 Countries Increase

EXPORT of Indonesian palm oil products to China, US, Bangladesh, Pakistan, and Middle East increased for first semester of 2018, the latest data from the Indonesian Oil Palm Producers Association (GAPKI) shows. For all products, export palm oil products, including biodiesel and oleochemical for first semester (January-June) of 2018, decreased by just 2%. Without biodiesel and oleochemical, export decreased 6% to 14,16 million tons from 15,04 million ton at the same period of 2017. Meanwhile, export to China, US, Bangladesh, Pakistan, and Middle East rose by 7%-31%. Export to China rose 23%, from 1,82 million tons at same period 2017 to 1,48 million tons this year. “This is influenced by China’s policy to lower its value added tax for biofuel from 11% to 10% starting 1 May 2018,” said Executive Director of Gapki Mukti Sardjono on press release, (27/7/2018). Meanwhile, trade war between China and the US has given an advantage to Indonesian palm oil industry. For the first time, on June 2018 China imported 185.860 tons biodiesel from Indonesia. CPO export to the US for first semester of 2018 also rose by 13%, from 542,70 thousand tons to 611,08 thousand tons. However, Gapki is worried the trend could be worse since the soybean supply increase influenced by the trade war. This could decrease other biofuels import. The highest Indonesian CPO export was to Bangladesh that rose 31%, while to Pakistan and Middle East rose 7% and 4%. ***