InfoSAWIT, JAKARTA – In the pandemic, furniture trade in the world positively got developed because many renovated their houses. This delivered impacts to derivative furniture products, including palm oil and palm sticks. As one main producer country, Indonesia should have the big chance to get increasing exports of palm and palm oil sticks to many countries.
Data from Central Bureau of Statistic (CBS) that the team of economist of Lembaga Pembiayaan Ekspor Indonesia (LPEI) managed, the 2023 palm and palm oil stick exports from Indonesia got escalated 11,44% year-on-year (yoy) or about US$ 29,32 million from US$ 26,31 million in 2022. The export volume did too 15,97% yoy, or about 70,08 thousand tons from 60,43 thousand tons in the previous year. This happened for the increasing demands from India and Pakistan that reached US$ 1,16 million and US$ 1,84 million for each.
Palm and palm oil sticks were used to make many products, such as, broom, handy crafts, and housing decoration. Broom from vegetable oil tree – material would be the main export commodity with the portion 98,24% or equal to US$ 28,80 million of the total exports.
As in the official statement to InfoSAWIT, for the past five years, palm and palm oil stick trade balance in Indonesia did get the surplus. In 2023, it reached US$ 29,14 million, higher than it in 2022 that reached US$ 26,27 million. Data from International Trade Centre (ITC), Indonesia was in the second exporter for palm and palm oil stick exporter in the world with the portion 12,42% to the global scale – exports after China.
But in January to June 2024, the two commodity – exports got decreased 27,59% yoy or reached US$ 10,18 million. The export volume did too 18,91% yoy to be 26,6 thousand tons. It happened in India, Japan, and Chine. But some countries, such as, Pakistan, Philippine, and Vietnam got increasing imports.
Senior Economist LPEI, Donda Sarah Hutabarat said that the decreasing exports happened for the decreasing property sector because of high interest rate. This minimized the furniture products, and house decoration products. But there would be export chances to Pakistan, Philippine, Vietnam, South Korea, and even Iran. Indonesia should take advantages by expanding the distribution network and escalate product quality to many non-traditional countries.
One palm and palm oil stick exporter, Rianto Aritonang, the owner of CV Kahaka Internasional successfully exported the two to many countries because of getting coaching program new exporters (CPNE) from Lembaga Pembiayaan Ekpor Indonesia (LPEI). Since 2020, CV Kahaka Internasional exported 8.500 metric tons of palm oil stick with the value up to US$ 3,5 million. Aritonang took advantages on export modal credit from Penugasan Khusus Ekspor (PKE) Small and Medium Business of LPEI to fulfill export demands.
Palm oil stick exports would minimize not only the waste but also escalate smallholders’ welfare in cooperation with CV Kahaka Internasional. Aritonang hoped to expand the exports to Europe and Australia where the two countries priotized environmental products.
“The exports are not easy but not difficult too. Start mapping the commodities that would get export value. Just do it and it would eventually upgrade the class to be exporter,” Aritonang said while giving tips if anyone wants to do exports. (T2)
