Decreased Export Requests, DMSI Calls 6 Million Tons Of CPO RI Piling Up

JAKARTA - The Indonesian Palm Oil Council (DMSI) said that exports of crude palm oil (CPO) experienced a decline in demand from abroad.

Plt. Chairman of DMSI Sahat Sinaga said the lack of exports caused the domestic CPO to accumulate. The number of CPOs that have accumulated is 6.17 tons from all over Indonesia and is an export-ready supply from November 2022 to January 2023.

"The entrepreneur has arrears in PE 6.17 tons, 6.17 tons are not used as export material. A total of 6.17 tons do not want to be exported because of the recession," Sinaga told reporters in Jakarta, Tuesday, February 7.

On that occasion, Sahat also mentioned a statement from the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan who asked producers to store part of his CPO supply. Sahat assessed that producers are currently still difficult to export.

"It is said not to export it, indeed the market is weak again. It says hold it first, don't export it," he said.

Furthermore, said Sahat, on the other hand, if there are no exports, market conditions will be complicated. Therefore, Sahat advised the government to provide incentives for CPO producers in the form of temporary suspension of Exit Customs (BK) of 52 US dollars per ton, so that producers can export.

"That means if (Indonesia) is not exported, this is all runyam. So, exports should not be blocked, so they are not hindered, then it is necessary to sacrifice the Ministry of Finance, namely the current exit fee of 52 US dollars per ton, while postponed until Eid is finished," he said.