Indonesia’s volume of crude palm oil (CPO) exports decreased in the first part of this year, as the new coronavirus pandemic eroded global demand for this product.
The Indonesian Palm Oil Association (GAPKI) said shipments of crude palm oil fell 11% to 15.5 million tonnes from January to June, local media reported on Thursday.
Blocking policies imposed through foreign countries, Indonesia’s leading buyers of crude palm oil, have devastated advertising activities that have led to weakening demands, GAPKI President Joko Supriyono said.
However, emerging global commodity costs helped drive Indonesia’s crude palm oil increase during the era by 6.4% to $10.06 billion on an annual basis, the president said Wednesday.
GAPKI’s chief executive Mukti Sardjono projected that global demand for crude palm oil and subtle products would begin to rebound as economic activity resumes in cargo countries.
Indonesia is the world manufacturer and exporter of raw palm oil.
The country, which has about 12 million hectares of oil palm plantations in the vast country of the archipelago, produced 47.43 million tons of palm oil in 2019, nine more than 2018 production, according to GAPKI data.