Losing to Vietnam, Indonesia's CPO palm oil exports drop

Published 2024년 5월 28일

Tridge summary

The Indonesian Ombudsman has identified competition from Vietnam as a key factor in the recent decline in Indonesian crude palm oil (CPO) exports. This competition was bolstered by a 2022 ban on Indonesian CPO exports to several countries, including European countries and India. As a result, buyers in these countries sought alternative suppliers, such as Vietnam, which quickly responded with a competitive policy. The ban disrupted the international business climate and led to a significant decrease in the export value of Indonesian CPO, despite an expected increase in national palm oil exports in 2023. India is the largest consumer of Indonesian CPO, importing 19.65% of the country's total national exports in 2023.

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Original content

Reporter: Sabrina Rhamadanty | Editor: Tendi Mahadi KONTAN.CO.ID - JAKARTA. The Indonesian Ombudsman revealed the reason why Indonesian crude palm oil (CPO) exports have decreased in recent years, one of which is because they are unable to compete with CPO from Vietnam. Chairman/Member of the Indonesian Ombudsman, Yeka Hendra Fatika, said this started in 2022 when there was a ban on CPO exports from Indonesia to several destination countries, including European countries and India. "So at that time the price of CPO was high but suddenly we were not allowed to export CPO, that was around May 2022. That disrupted the international business climate," he said when met by Kontan at the Public Discussion on Prevention of Maladministration in Palm Oil Industry Governance Services which was held at the Ombudsman building, in the South Jakarta area, Monday (27/05). "Imagine, our buyers from India are not sent goods even though they already have a contract. They are definitely looking for ...

Source: Kontan