The supply of palm oil from Indonesia abroad may decrease in 2023, as the country began to use the “palm” more often in the production of biodiesel. It is reported by Reuters with reference to the statement of the national association GAPKI.
“There is a shift in the structure of demand: from exports to an increase in domestic consumption of palm oil,” Fadhil Hassan, head of trade and promotion at GAPKI, said at the conference.
According to him, the sale of palm oil from Indonesia to foreign markets in the period from 2020 to 2025 may decrease by 7.66% after an increase in shipments of these products by more than 8% from 2016 to 2020.
“Domestic consumption shows significant growth due to the introduction of a mandatory program for biofuels B35,” the expert said.
The Indonesian government’s decision to raise the mandate is linked to plans to reduce fuel imports amid high global energy prices.
Hassan also added that palm oil production in Indonesia is likely to decline slightly in 2023 due to bad weather and insufficient use of fertilizers on small farms.