JAKARTA - The palm oil processing industry is one of the leading sectors that supports the national economy. This performance is proven, among others, through its contribution of 17.6% to total non-oil and gas exports in 2021.
"In 2021, exports of palm products was around 40.31 million tons with an export value of USD35.79 billion, an increase of 56.63% of the export value in 2020," said Industry Ministry Spokesman Febri Hendri Antoni Arif in Jakarta, Thursday (10/3. In addition, the palm oil processing industry is a labor-intensive sector, which has absorbed 4.20 million direct workers and up to 12 million indirect workers.
According to Febri, downstreaming of the palm oil-based industry is one of the successes of the government's policy since 2007 which has consistently set this sector as a priority program until 2022. In addition, in the past 10 years, exports of palm oil derivative products have increased significantly, from 20 % in 2010 to 80% in 2020. This is in accordance with the target of the downstream palm oil industry development roadmap which is regulated through the Minister of Industry Regulation No. 13 of 2010.
Based on data from the Ministry of Industry, the national demand for palm cooking oil (MGS) in 2021 is 5.07 million tons, consisting of industrial bulk needs of 1.62 million tons (32%), household bulk 2.12 million tons (42%), simple packaging 0.21 million tons (4%), and premium packaging 1.11 million tons (22%).
Fulfilling the need for bulk MGS of 1.62 million tons for the food industry using raw materials and/or supporting materials for MGS is unlikely to use bulk MGS from the Domestic Market Obligation (DMO) because it is usually supplied by the group's MGS factories at market prices or purchased from MGS factories. with a Business to Business (B2B) mechanism.
In addition, the scarcity issue in the MGS market is an accumulation of inventory problems for MGS stock since December 2021, including the occurrence of rush buying in mid-January 2022. This is expected to contribute to the scarcity of MGS in the market, although in the last few weeks there has been additional supply of MGS to the market. the community that obtained the DMO. (LM)