In a recent report by the Indonesia Palm Oil Association (GAPKI), it was revealed that Indonesia’s palm oil exports in 2023 experienced a 2.7% decrease compared to the previous year, amounting to 32.2 million metric tons. This drop from the 33.1 million tons shipped in 2022 was attributed to a combination of reduced export volume and lower average commodity prices.
During an industry event, Eddy Martono, the chairman of GAPKI, highlighted that the decline in palm oil export revenue in 2023 was influenced by the drop in export volume and the comparatively lower commodity prices in comparison to the previous year. Notably, in 2023, the use of palm oil as a feedstock for biodiesel production exceeded its utilization for food consumption.
Data provided by Indonesia’s energy ministry indicated that biodiesel consumption in 2023 reached 12.2 million kiloliters and is projected to increase to a range of 12.5-13 million kiloliters in the current year, reflecting a continued emphasis on biodiesel as a key application for palm oil.