Indonesia Will Dominate Global Vegetable Oil Supply in 2023
- 2022-11-24
- Posted by: Widyadhana Mufida
- Category: Uncategorized
Indonesia palm oil (CPO) will continue to dominate global vegetable oil supply in 2023. Deputy Director of the Institute for Development of Economics and Finance Eko Listiyanto also sees this potential. He explained that Indonesia CPO has contributed 58 percent of the world’s total CPO supply. This figure is equivalent to 46.5 million metric tons from the 79.16 million metric tons of world CPO.
“Palm oil will still dominate compared to other vegetable oils,” said Eko in Jakarta (24/11/2022).
According to merdeka.com, Indonesia’s CPO dominance is expected to continue until 2023. However, the price of these export products will not be as high as this year. This is because the peak moment of rising commodity prices has decreased. Not only that, a disruption in this Industry might affect CPO supply globally.
Telisa Falianty, Economist from University of Indonesia, said that legal processes could affect the industry. Therefore, Indonesia needs to resolve its legal processes problem, so it can maintain its sustainability.
“For example, the regulation prohibiting the export of CPO and its derivatives on April 28, 2022. This regulation has caused various impacts. Starting from a decrease in world CPO prices, a shortage of global CPO supply, and an oversupply of domestic CPO,” she said.
Telisa explained that the national economy cannot be separated from the palm oil industry. This industry covers 82 percent of the total plantation crop production. In addition, the palm oil industry also involves a large number of workers.
“Because the processing of palm oil requires a long process. That makes a lot of workers involved in the industry. Apart from that, farm laborers and casual workers are also very affected,” she added.
DPR Commission IV member Daniel Johan believes the national palm oil industry will continue to progress as long as the law is properly enforced. He also explained that the palm oil industry is very strategic in the eyes of the world. This is because palm oil is used for various strategic products, such as food products, clothing and energy supply.
“Indonesia’s current growth can still be positive and the trade balance can be surplus, because palm oil is one of them. So, if this industry is shaken, the opposite will happen,” said Daniel.