Expensive Fertilizers Price Becomes The Main Cause Of RI's Palm Oil Production Increases Slightly

Illustration of palm oil (Photo: doc. Antara)

JAKARTA - The Indonesian Palm Oil Council (DMSI) predicts that national palm oil production will increase to 52.5 million tons this year, compared to last year's record of 51.2 million tons.

As for the derivatives, from the prediction of palm oil production in 2023 of 52.5 million tons, namely 46.8 million tons for CPO, and 4.4 million tons for CPKO.

"(The increase) is not too big, because fertilizer is also getting more expensive. So, Indonesia must immediately take various steps so that productivity does not decrease," said Acting Chairman of the Indonesian Palm Oil Board (DMSI) Sahat Sinaga in Jakarta, Tuesday, February 7.

For domestic consumption, said Sahat, this year's cooking oil in particular is predicted to reach 11 million tons, from 9.9 million tons last year.

"We project that this year (2023) it will increase to 11 million tons, in 2022 it will be 9.9 million tons," he said.

Meanwhile, this year's FAME is predicted to increase to 10 million tons, from the previous 8.8 million tons in 2022. This means that domestic consumption, which was previously 40.5 percent, will increase to 44.6 percent, in 2023.

"Therefore, if there are rumors outside saying that B35 will make it difficult, that's not true. It's actually very interesting so that domestic consumption will increase. Because, for cooking oil (Indonesia) actually only needs 11 million tons. So that's enough," he concluded.