Derom Bangun, Chairman of the Indonesian Palm Oil Council (DMSI), estimated that national production of crude palm oil in July 2017 would reach 3.40 million tons. In that case, Indonesia's total production of palm oil from January to July 2017 could reach 21.55 million tons. "With the current good weather, production from January to December 2017 could reach 36 million tons, whereas the initial projection was 35 million tons," Derom said in Jakarta on Sunday (3/9).
Derom also said that the positive production growth was supported by the fast increase in the productivity of young plants, and IMT (immature plants) becoming TM (producing plants) with a contribution exceeding the initial estimation.
Previously, The Indonesian Palm Oil Association (Gapki) stated that national palm oil export from January to June 2017 had reached 16.60 million tons, a 32.80% increase from the same period last year, which only reached 12.50 million tons. The increase was triggered by the surge in demand for palm oil from major export-destination countries, i.e., India, China, European Union (EU), and United States of America, as well as from Africa and Bangladesh.
The exports include crude palm oil (CPO) and palm kernel oil (PKO) with their derivatives, including oleochemicals and biodiesel. Meanwhile, production from January to June 2017 reached 18.15 million tons, while the same period in 2016 only reached 15.30 million tons. These data included the calculations from various palm oil associations, including DMSI.
According to Derom, palm oil production in July 2017 was believed to reach 3.40 million tons, export around 2.10 million tons, domestic consumption 800 thousand tons, and stock around 2.30 million tons. For August and September, DMSI estimated the production to be 3.50 million and 3.80 million tons each. "From January to July 2015 production was 18.50 million tons, while from January to July 2017, it reached 21.55 million tons. In October, production is estimated to decrease to 3.50 million tons, and in November to December 2017, it is expected to decrease even more," Derom said.
However, plantations that have conducted fruit stock census on trees could yield a more accurate estimation. "But since there is none,
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