WINNIPEG, (MarketsFarm) – There is 1.70 million more hectares (4.20 million acres) of palm oil plantation area in Indonesia than originally estimated by the country’s Ministry of Agriculture. In turn, palm oil production is expected to increase as well.
The total amount of hectares in 2019 was now pegged at slightly more than 16.38 million (40.48 million acres). The increase was noted in a report by the United States Department of Agriculture’s (USDA) attaché that was released Jan. 29. The report said the increase was discovered by using satellite data gathered by the agriculture ministry, along with the Ministry of Forestry and Environment as well as Indonesia’s space agency.
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Of the 26 provinces in Indonesia that have palm oil plantations, Riau has the most plantation area at nearly 3.39 million hectares (8.38 million acres) followed by North Sumatera with 2.08 million (5.14 million). These two provinces account for a third of Indonesia’s plantation area, the attaché’s report noted.
The additional area has helped to increase production at 43.0 million tonnes in 2019/20, for a 1.5 million-tonne increase from the previous year. The USDA said Indonesia accounts for 57.2 per cent of global palm oil production.
The attaché wrote the country’s domestic use will jump 17.8 per cent from last year to 15.61 million tonnes, with food consumption pegged at 5.95 million tonnes. Industrial use was forecast to jump by 25 per cent to 9.20 million tonnes following Indonesia implementing its B30 blending mandate. That mandate requires 30 per cent palm oil in the country’s biodiesel production. The remainder will be for feed use.
Exports in 2019/20 are expected to change little from the previous year. The attaché predicted 28.7 million tonnes for the current marketing year, compared to almost 28.3 in 2018/19.
