Indonesia Expected to Lead the World in Raw Palm Oil Production by 2027
Indonesia’s raw palm oil (CPO) production this year is estimated to outperform Malaysia, topping the world list. This year’s production accounts for 44% of the world’s total production or 17.2 million tons. And Malaysia’s annual production of 16 million tons, or 41.2% of the world’s total production.
Astra Agriculture Heng Cun Listed Co., Ltd. in the Jakarta Stock Exchange to publish a note on the world forecast of palm oil, said. World raw palm oil production growth is estimated to reach 4.1% this year, or a total production of 38.7 million tons. This is because the planted area increased by 700,000 hectares from 9.8 million hectares to 10.5 million hectares.
World raw palm oil production is expected to grow by 8.4% next year. From 38.7 million tons to 41.9 million tons. Because the planted area increased by another 700,000 hectares from 10.5 million hectares to 11.3 hectares.
Indonesia will surpass Malaysia’s 17 million tons of raw palm oil production next year, becoming 18 million tons. Indonesia and Malaysia account for 85 percent of world palm oil production. They are followed by Thailand, Colombia, Ecuador, New Guinea and other countries.
Indonesia’s Industry Minister Fahmy Idris said in Jakarta during a working session with the Sixth Parliamentary Committee that raw palm oil production will reach 1.579 million tons in July, 1.623 million tons in August, 1.699 million tons in September, dropping slightly to 1.347 million tons in October, 1.62 million tons in November and 1.699 million tons in December.
Exports of raw palm oil and derivatives until May amounted to 4.5 million tons, while total production from January to May was 6.4 million tons. Therefore, domestic consumption of raw palm oil in May amounted to 1.9 million tons.
The government estimate is the same as the world raw palm oil data. Raw palm oil production this year, will reach 17.44 million tons or 7.8% more than last year. And consumption increased by 3.5% to 4.35 million tons.
“If domestic consumption reaches 4.35 million tons, then the allocated domestic sales of raw palm oil will be sufficient. If the supply of raw palm oil to Java is at least 250,000 tons per month, the domestic supply of cooking oil is considered to remain stable. This is because the consumption of cooking oil in Java represents 67% of the total Indonesian consumption.”
Fahmy stressed that in terms of quality, the quality of raw palm oil and cooking oil has met the standards. However, due to the world price of raw palm oil, the supply of raw palm oil to domestic cooking oil processing plants has risen. As a result, processors have to sell their products in line with the market price.