InfoSAWIT, JAKARTA – Indonesia’s crude palm oil (CPO) production continues to show dynamic trends throughout 2024. According to the latest report from the Indonesian Palm Oil Association (GAPKI), CPO production in September 2024 reached 4.021 million tons, reflecting a slight increase of 0.88% compared to July’s production of 3.986 million tons. Palm Kernel Oil (PKO) production also rose to 394,000 tons from 391,000 tons in August.

However, on a year-on-year (YoY) basis, total CPO and PKO production up to September 2024 reached 38.937 million tons, a 4.62% decrease compared to 40.823 million tons during the same period in 2023. This decline has drawn attention amidst ongoing efforts by the government and industry players to enhance efficiency and productivity.

On the domestic consumption front, GAPKI reported a decrease in total palm oil consumption in September 2024 to 1.989 million tons, down from 2.060 million tons in August. Key sectors experienced declines, with consumption in the food sector dropping from 898,000 tons in August to 865,000 tons in September.

Biodiesel consumption also fell to 934,000 tons in September from 979,000 tons in August. “Conversely, oleochemical consumption rose to 190,000 tons from 183,000 tons in the previous month,” said GAPKI Executive Director Mukti Sardjono in an official statement quoted by InfoSAWIT on Friday (November 22, 2024).

On an annual basis, domestic consumption through September 2024 reached 17.559 million tons, a 1.63% increase compared to 17.277 million tons during the same period in 2023. While annual food sector consumption declined by 4.01%, from 7.845 million tons in 2023 to 7.530 million tons in 2024, oleochemical usage decreased by 1.65%, from 1.702 million tons to 1.674 million tons. Biodiesel consumption, however, saw significant growth, rising by 8.08% from 7.730 million tons in 2023 to 8.355 million tons in 2024.

The annual declines in production and domestic consumption for the food and oleochemical sectors highlight challenges in the palm oil market, both domestically and internationally. Nevertheless, the increase in biodiesel consumption offers a bright spot, supported by government-mandated biodiesel policies.

The slight monthly rise in CPO and PKO production reflects stability in the industry’s capacity despite external pressures such as weather and global price fluctuations. To address these annual declines, industry players and the government are urged to prioritize innovation and efficiency. Strategies such as improving plantation productivity, advancing processing technology, and diversifying export markets will be essential to maintaining the competitiveness of Indonesia’s palm oil industry.

Meanwhile, the upward trend in biodiesel consumption presents a significant opportunity for the industry to capitalize on renewable energy markets, aligning with national and global sustainability targets. (T2)