2022 : Export Value of Palm Oil is Estimated to be the Highest in History
- 2022-12-19
- Posted by: Widyadhana Mufida
- Categories: Agriculture, News
The export value of palm oil in 2022 is estimated to be the highest in history. The Director General of Plantations at the Ministry of Agriculture Andi Nur Alamsyah estimates that the value of palm oil exports this year will reach US$38 billion. This is supported by the positive trend for crude palm oil (CPO) prices throughout 2022. This trend has a positive impact on palm oil export foreign exchange earnings.
“Exports of palm products by the end of this year will contribute US$38 billion in foreign exchange. Bigger than foreign exchange earnings in 2021. According to data from the Central Bureau of Statistics, exports of palm products generate foreign exchange of US$30.34 billion in 2021,” said Andi, quoted from the Indonesian Sawit Magazine page (19/12/2022).
Reported by wartaekonomi.co.id, Andi explained that the palm oil industry also employs around 17 million people. The workforce is in the on farm and off farm sectors. In addition, regional development also plays a role in the development of oil palm plantations, because it is the center of the economy in the region.
Head of the Foreign Relations Division of GAPKI Fadhil Hasan explained, exports of palm products were dominated by their derivative products. Meanwhile, palm oil is only 20% as a contribution to the ongoing downstream policy.
Export growth in the last three years has shown a downward trend, mainly due to the Covid-19 pandemic. In the first semester of 2022, export volume experienced disruptions and fell sharply due to export restriction and ban policies. This condition recovered in the second semester of 2022, although it was not fully compensated properly.
Exports in 2021 recorded positive growth compared to 2020 except for destination countries India, Spain, Italy, Bangladesh, and as well as European and Asian countries. Meanwhile, until August 2022, exports recorded positive growth to India, the United States and the Middle East. However, it experienced negative growth in other countries including China, Spain, the European Union (EU), and Asia.