Indonesia: Refined Palm Oil Market 2024

Refined Palm Oil Market Size in Indonesia

The Indonesian refined palm oil market fell remarkably to $X in 2022, waning by -70% against the previous year. In general, consumption showed a abrupt curtailment. Refined palm oil consumption peaked at $X in 2020; however, from 2021 to 2022, consumption failed to regain momentum.

Refined Palm Oil Production in Indonesia

In value terms, refined palm oil production totaled $X in 2022 estimated in export price. The total output value increased at an average annual rate of +2.5% over the period from 2012 to 2022; however, the trend pattern remained consistent, with somewhat noticeable fluctuations being observed in certain years. The pace of growth was the most pronounced in 2017 with an increase of 21% against the previous year. As a result, production reached the peak level of $X. From 2018 to 2022, production growth remained at a somewhat lower figure.

Refined Palm Oil Exports

Exports from Indonesia

In 2022, the amount of refined palm oil exported from Indonesia dropped to X tons, which is down by -10.8% against the year before. Overall, total exports indicated strong growth from 2012 to 2022: its volume increased at an average annual rate of +5.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +9.6% against 2020 indices. The growth pace was the most rapid in 2021 when exports increased by 23% against the previous year. As a result, the exports attained the peak of X tons, and then fell in the following year.

In value terms, refined palm oil exports soared to $X in 2022. Over the period under review, exports, however, posted a buoyant increase. The pace of growth was the most pronounced in 2021 with an increase of 90%. The exports peaked in 2022 and are likely to see gradual growth in years to come.

Exports by Country

China (X tons), Pakistan (X tons) and India (X tons) were the main destinations of refined palm oil exports from Indonesia, together accounting for 35% of total exports. The United States, Bangladesh, Malaysia, Egypt, Russia, Vietnam, Italy, Spain, Myanmar and the Philippines lagged somewhat behind, together comprising a further 36%.

From 2012 to 2022, the biggest increases were recorded for the United States (with a CAGR of +41.9%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, the largest markets for refined palm oil exported from Indonesia were China ($X), Pakistan ($X) and India ($X), together comprising 35% of total exports. The United States, Bangladesh, Malaysia, Egypt, Italy, Russia, Vietnam, Myanmar, Spain and the Philippines lagged somewhat behind, together accounting for a further 35%.

In terms of the main countries of destination, the United States, with a CAGR of +50.6%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The average refined palm oil export price stood at $X per ton in 2022, surging by 37% against the previous year. Overall, the export price posted a notable increase. The pace of growth was the most pronounced in 2021 an increase of 55% against the previous year. Over the period under review, the average export prices hit record highs in 2022 and is expected to retain growth in the immediate term.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was the United States ($X per ton), while the average price for exports to Egypt ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to the United States (+6.1%), while the prices for the other major destinations experienced more modest paces of growth.

Refined Palm Oil Imports

Imports into Indonesia

In 2022, supplies from abroad of refined palm oil was finally on the rise to reach X tons for the first time since 2019, thus ending a two-year declining trend. Over the period under review, imports saw a tangible increase. The most prominent rate of growth was recorded in 2013 when imports increased by 14,611% against the previous year. As a result, imports attained the peak of X tons. From 2014 to 2022, the growth of imports remained at a lower figure.

In value terms, refined palm oil imports soared to $X in 2022. Overall, imports enjoyed a strong expansion. The pace of growth appeared the most rapid in 2013 when imports increased by 10,850% against the previous year. As a result, imports attained the peak of $X. From 2014 to 2022, the growth of imports remained at a lower figure.

Imports by Country

In 2022, Niger (X tons) constituted the largest supplier of refined palm oil to Indonesia, with a 75% share of total imports. Moreover, refined palm oil imports from Niger exceeded the figures recorded by the second-largest supplier, Malaysia (X tons), threefold. The third position in this ranking was taken by Singapore (X tons), with a 0.3% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Niger stood at +12.8%. The remaining supplying countries recorded the following average annual rates of imports growth: Malaysia (+23.4% per year) and Singapore (-26.8% per year).

In value terms, Niger ($X) constituted the largest supplier of refined palm oil to Indonesia, comprising 89% of total imports. The second position in the ranking was taken by Malaysia ($X), with an 11% share of total imports. It was followed by Singapore, with a 0.1% share.

From 2012 to 2022, the average annual rate of growth in terms of value from Niger stood at +18.3%. The remaining supplying countries recorded the following average annual rates of imports growth: Malaysia (+11.1% per year) and Singapore (-34.2% per year).

Import Prices by Country

In 2022, the average refined palm oil import price amounted to $X per ton, reducing by -13.5% against the previous year. In general, import price indicated pronounced growth from 2012 to 2022: its price increased at an average annual rate of +2.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, refined palm oil import price increased by +44.8% against 2020 indices. The growth pace was the most rapid in 2021 an increase of 67% against the previous year. As a result, import price reached the peak level of $X per ton, and then shrank in the following year.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was India ($X per ton), while the price for Singapore ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by India (+16.6%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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