Indonesia Palm Oil Exports – Eyes on China as India, EU to Rise Duties

08 November 2019
Indonesia Palm Oil Export Data

Palm oil is one of the world’s most produced and consumed oils. This highly stable, production-efficient and cheap oil is used in a wide variety of cosmetic, food and hygiene goods. It can also be used as source for bio-fuel or bio-diesel. Most palm oil is produced in Africa, Asia and South America because the trees require sunshine, warm temperatures and plenty of rain in order to maximize production. Indonesia is the world’s largest producer and exporter of palm oil but it is also the biggest greenhouse gas emitter after China and the United States. Global palm oil production is dominated by Indonesia and Malaysia. These two countries, together, account for around 85 to 90 percent of total palm oil production on the world.


According to Indonesia palm oil export data, the country is anticipating a boost in exports of the commodity to China, taking advantage of an opportunity opened up by the escalating trade war between Beijing and Washington. This move came after India announced its plans to increase palm oil import tariffs from Indonesia and a bio-fuel phase-out in the European Union (EU). On the other side, China removed palm oil from its import tariff quota management.


For Indonesia, the U.S.-China trade war presents an opportunity to expand beyond a European market that’s become increasingly hostile to palm oil because of its environmental implications. The European Commission passed a measure in March 2019 to phase out palm oil-based bio-fuels by 2030. This measure came over concerns that production of palm oil often on land cleared of rain-forest contributes to worldwide carbon emissions and thus exacerbates climate change.


The Indonesian Palm Oil Association (GAPKI) welcomed the decision of Chinese government to end palm oil import quotas. Exports account for about 70% of Indonesia’s palm oil production, but the government is trying to boost domestic consumption to mitigate demand risks.

 

Indonesia Palm Oil Exports to India, EU and China in 2018


As per Indonesia export statistics of palm oil, the country supplied oil the most to India, followed by the European Union (EU) and China. Indonesia exported palm oil worth US$ 3559 million to India, US$ 2288 million to EU and US$ 2086 to China. Check palm oil quantity exported from Indonesia to India, EU and China in 2018.



Country/Region

Quantity (Tons)

India

6,344,084

EU

3,784,317

China

3,576,823

 


Indonesia Palm Oil Exports to the World in Last 5 Years


The majority of Indonesia’s palm oil output is exported. And the country’s most important palm oil export destination countries are India, Pakistan, China, Malaysia and the Netherlands. Although the numbers are very insignificant, Indonesia also imports some palm oil, primarily from India. In the last five years, the value of Indonesia’s exports of palm oil has increased. Below given chart and table shows quantity of palm oil exported from Indonesia in the last 5 years.



Year

Quantity (Tons)

2014

22,892,387

2015

26,467,564

2016

22,759,305

2017

27,353,340

2018

27,893,676

 


Top 5 Indonesia Palm Oil Export Destinations in 2018


Indonesia’s largest export destination of palm oil is India, which purchased oil worth US$ 3559 million in 2018. Among top 5 Indonesia palm oil export destinations, four countries are from Asian continent. India was followed by China, Pakistan, Bangladesh and Spain.



Country

Value in %

India

21.5%

China

12.6%

Pakistan

8.7%

Bangladesh

5.1%

Spain

4.3%

 


Palm Oil Production by Country


Indonesia customs data reveals that Indonesia is the largest production country of palm oil in the world. In 2018, Indonesia produced 41,500 metric tons of palm oil, followed by Malaysia, Thailand, Colombia and Nigeria.



Country

Quantity (Metric Tons)

Indonesia

41,500

Malaysia

21,200

Thailand

3,000

Colombia

1,680

Nigeria

1,015


Indonesia Palm Oil Production by Year


In the past 20 years, the production of palm oil in Indonesia has increased with few Indonesian industries have shown a tremendous growth. Indonesia’s palm oil production increased from 33,000 metric tons in 2014 to 41,500 metric tons in 2018. Have a look at production values of palm oil in the last five years.  



Year

Quantity (Metric Tons)

2014

33,000

2015

32,000

2016

36,000

2017

39,500

2018

41,500

 


Indonesia Export Data of palm oil contains detailed information about Indonesian companies who supply oil to foreign buyers. It also covers overseas import companies who purchase palm oil from the country. Besides company information, data also covers other shipment details such as Date, HS Code, Product Specifications, Importer Country, Destination Port, Quantity, Value, etc. Have a look at the sample below to understand the data format.


Indonesia Palm Oil Exports (Sample)


Date

19-01-2019

Export Notes

Export

HS Code

15111000

Product Description

Crude Palm Oil

Indonesian Exporter Name

PT. Bumi Indawa Niaga

Exporter Address

Wisma Korindo JL. MT Haryono Kav Pancoran, Jakarta Selatan

Importer Name

Posco Daewoo Corporation

Importer Address

165, Convensia-Daero, Yeonsu-Gu, Incheon

Importer Country

Republic of Korea

Destination Country

India

Port of Loading

Asike

Destination Port

Haldia

Quantity

4002.664

Unit

TNE

Net Weight

4002664

FOB Value (USD)

1364908.42

Freight

27298.1684

Insurance

2854.0235

 


Indonesia’s palm oil plantation and processing industry is a key to the country’s economy. The export of palm oil is an important foreign exchange earner while the industry provides employment opportunities to millions of Indonesians. In terms of agriculture, palm oil is the most important industry of Indonesia contributing between 1.5-2.5 percent of the nation’s gross domestic product (GDP).


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