BPS Says Palm Oil Triggered Deepest Decline In Processing Industry Exports

Fresh Fruit Bunches (FFB) of oil palm in Jambi. (Photo: ANTARA)

JAKARTA - Deputy for Distribution and Service Statistics of the Central Statistics Agency (BPS) Setianto said that the manufacturing sector experienced the deepest export decline of 25.92 percent in May 2022 compared to April 2022.

Palm oil export restrictions are said to be the trigger.

"So, what has decreased on a month-to-month (MoM) basis, mainly the processing industry which experienced the deepest decline in exports, which fell by 25.92 percent. For palm oil, we experienced export restrictions last May, so that palm oil experienced a decline in exports. decline in exports in May 2022," Setianto said as quoted by Antara, Wednesday, June 15.

Setianto said that the decline in Indonesia's palm oil exports can be seen from data on exports of this commodity to India, which fell 100 percent in May 2022 to 0 rupiah from April 2022 of 376.60 million US dollars.

Then, palm oil exports to Pakistan also fell by 90.17 percent to 21.90 million US dollars from the previous 222.80 million US dollars in April 2022.

The largest decline in palm oil exports occurred from Riau, which decreased by 91.57 percent to US$84.40 million in May 2022 compared to April 2022 of US$1 billion.

Setianto added that the value of Indonesia's exports in May 2022 reached 21.51 billion US dollars, down 21.29 percent compared to the previous month.

Nevertheless, the export value increased by 27 percent when compared to exports in May the previous year.

According to Setianto, the decline in exports in May 2022 occurred in almost all sectors, including the manufacturing sector; agriculture, forestry, and fisheries; and the mining industry.

"Only the oil and gas sector experienced an increase in exports in May 2022 by 4.38 percent," said Setianto.

Meanwhile, exports from the agricultural sector decreased by 25.92 percent, with the largest decline in exports of swallow's nests and medicinal plants.

Then, a decline also occurred in the mining sector by 12.92 percent, which was driven by a decline in copper and lignite ore commodities.

Meanwhile, exports of the oil and gas sector increased 4.38 percent (MoM), mainly driven by oil and gas commodities for crude oil and gas.

"Commodities that have increased include nickel, copper, vegetable woven materials, beverages, alcohol, vinegar, matches, fireworks and explosives," said Setianto.

Based on destination countries, the largest increase in Indonesian exports was to China, the United States, and Singapore.