The country may see a decline in palm oil exports mainly due to stagnant production and greater domestic consumption following a government regulation on increased biodiesel mix in diesel fuel, according to the Indonesia Palm Oil Board.
Derom Bangun, the board’s chairman, said the country needed to revise this year’s crude palm oil (CPO) production target as production would be stagnant due to inclement weather...
Derom said that the country had previously aimed for 28 million tons of CPO production this year, but due to a prolonged rainy season, which hampered oil palm cultivation, Indonesia might only produce 26.7 million tons of CPO by the end of 2013...
“If the government’s policy of increasing the biodiesel mix to 10 percent in diesel fuel goes according to schedule in October, it will push national biodiesel consumption to 1.2 million kiloliters this year,” ...
Given the country’s annual diesel consumption of 33 million kiloliters, 10 percent means 3.3 million kiloliters of biodiesel or equal to 3 million tons of CPO...
Palm oil imports to the EU account for 10 percent of global production, and nearly half is imported through the Netherlands, Reuters reports... Indonesia, the world’s largest palm oil producer, has been expanding its oil palm estates by 200,000 hectares a year...
The news is taken from the Jakarta Post.