INDONESIAN PALM OIL EXPORT IN THE FIRST SEMESTER OF 2011

11 , 2011 | Source: GAPKI

JAKARTA′ AUGUST 2011 - The Indonesian Palm Oil export for the first semester of 2011 was 8.2 million metric tons that increased 730 thousand metric tons from the previous year or around 8.9% increase. The export in the first semester of 2010 was 7.47 million metric tons. The palm oil export consist of palm oils and kernel oils, and in the form of crude and processed oils. The share of palm oil on Indonesian export in the first semester of 2011 was 92.07% (7.55 million metric tons), while the share of kernel oil was only 7.97% (652 thousand metric tons).

Indonesia has been exporting more crude oil than processed oil, whether they were palm oils or kernel oils. In the first semester of 2011 crude palm oil export reached 56.02oh, while processed palm oil was only 43.98 %. However, if they were compared to 2010 export, the percentage of the processed palm oil has decreased, on the other hand the percentage of crude palm oil has increased. In 2010, the processed palm oil export was 46.19% of total palm oil export and the crude palm oil was 53.81%. In line with its share of the total palm oil export, as the percentage of the crude palm oil decreased the volume of the crude palm oil also decreased, and as the percentage of the processed palm oil increased the volume of the processed palm oil also increased.

Otherwise happened for the kernel oils export, the processed kernel oil increased, while the crude kernel oil decreased. The changes took place whether in percentage or in volume, from 96 thousand metric tons of processed kernel oil (14.93%) in the first semester of 2010 increased to 107 thousand metric tons (16.42%) inthe first semester of 2011.

The opposite happened for the crude kernel oil export, it decreased from 552 thousand metric tons (85.06%)inthe first semester of 2010 to 546 thousand metric tons (83.58%) in the first semester of 201 1.

If the above phenomenon was related to one of the aims of export tax, that is to stimulate processing industry by providing abundant raw materials, we cannot conclude decisively from the export data that export tax would encourage the processing industry. The availability of the raw material is not the sole factor to build processing industry, there are still many factors that government can apply. Such other factors that stimulate the industry are government policies which promote competitive and secure access to energy sources, competitive interest rate, infrastructure, and skilled labor. The government also has an essential role to play in encouraging R&D and innovation, which represent critical factors for competitiveness. More broadly, stimulating industrial development is a multi-faceted task which calls for a strategic vision, an integrated policy approach and the attention of all public policy-makers.

The increase of the Indonesian palm oil was fueled by the increase of import to India and China. India bought half of its palm oil import from Indonesia and Malaysia. India has surpassed China as the world′s biggest buyer of palm oil as rising incomes increased demand for fried China as the world,s biggest buyer of palm oil as rising incomes increased demand for fried and processed foods and drought reduced domestic production of cooking oil.

The cut of palm oil export tax in August from 20oh to I5Yo was expected to make Indonesian palm oil more competitive in the world markets, in turn it will increase export. Another interesting aspect on the palm oils export is that theris no significant impact of palm oils export to Europe.

This is despite the fact that there are a lot of negative campaign against palm oil in the Eroupe carried out by NGOs. In fact, the export of palm oils increased from 1,469 million tonnes in the first semseter of 2010 to 1,634 millions tonnes in the first semester of 2011. Eroupe continues to be the second largest importer of palm oils from Indonesia.

If the trend of Indonesian export of palm oil in 2011 follows export in 2010 we can expect that palm oil export will be stronger in the second semester of 20ll so that the total export of palm oils in 2011 will be higher in 2010. We predict that that the total export of palm oils in 2011 will reach around 18 million tonnes.
 

 

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