Palm oil trade for Indonesia is very important considering its role and contribution to the Indonesian economy. In Indonesia, as many as 17 million farmers depend on the palm oil industry so that the decline in palm oil prices can directly affect their welfare.
Therefore, stated by the General Chairman of the Indonesian Palm Oil Association (Gapki) Joko Supriyono, as the largest producer and exporter of palm oil, Indonesia needs to strengthen its position in the global market. Estimated production of crude palm oil (CPO) in 2019 is 45.7 million plus palm kernel oil (PKO) 4 million tons, exports 35 million tons, and domestic consumption is 16 million tons.
“This is important because as the largest producer and exporter, besides being still dependent on the export market, Indonesia’s position is relatively weak especially when the market fluctuates and prices decline,” Joko said in his remarks at the 15th Indonesian Palm Oil Conference (IPOC) 2019 and 2020 Price Outlook in Nusa Dua, Bali, Thursday (10/31/2019).