The Impact of the COVID-19 on Indonesian Palm Oil Exports

Year 2023, Volume: 5 Issue: 2, 121 - 128, 29.12.2023

Zahraturrahmi Zahraturrahmı , Vecdi Demircan

https://doi.org/10.55979/tjse.1372120

Abstract

ABSTRACT
This study aims to reveal the impact of the COVID-19 pandemic (2020-2021) on Indonesian palm oil exports. Secondary data were used in the study. The data used are monthly crude palm oil production volumes, monthly crude palm oil export volumes and values, palm oil export destination countries, and monthly crude palm oil prices in the world and local markets from January 2019 to December 2021. Based on the research results, the COVID-19 pandemic has had a negative impact on Indonesian palm oil production and export volumes, and due to supply chain disruptions, labor constraints, decline in demand, and other constraints. Palm oil production and exports decreased by 2.9% and 8.5%, respectively during the COVID-19 pandemic. On the other hand, the COVID-19 pandemic positively impacted the increase in the price and export value of Indonesian palm oil. The world palm oil price increased by 26% during the COVID-19 pandemic, contributing to a 16.9% increase in Indonesia's export revenue. The Indonesian government has made various efforts to mitigate the negative impact of COVID-19 on Indonesian palm oil exports. These efforts include providing fiscal and economic stimulus, active promotion and economic diplomacy, diversifying export markets, and delaying the implementation of the mandatory B30 policy.

Keywords

COVID-19, Export, Indonesia, Palm oil

COVID-19'un Endonezya Palm Yağı İhracatı Üzerine Etkisi

Abstract

Bu çalışmada, COVID-19 salgınının (2020-2021) Endonezya'nın palm yağı ihracatı üzerindeki etkisini ortaya koymak amaçlanmıştır. Çalışmada ikincil veriler kullanılmıştır. Kullanılan veriler, aylık ham palm yağı üretim miktarları, aylık ham palm yağı ihracat miktarları ve değerleri, palm yağı ihracatı yapılan hedef ülkeler ve Ocak 2019 - Aralık 2021 döneminde dünya ve yerel piyasalarda aylık ham palm yağı fiyatlarıdır. Araştırma sonuçlarına göre, COVID-19 salgınının Endonezya palm yağı üretimi ve ihracat hacimleri üzerinde olumsuz bir etki yarattığı belirlenmiştir. Tedarik zincirindeki aksaklıklar, işgücü sınırlamaları, talepteki düşüş ve diğer kısıtlamalar nedeniyle COVID-19 salgını sırasında palm yağı üretimi %2.9, palm yağı ihracatı ise %8.5 oranında azalmıştır. Öte yandan, COVID-19 salgını Endonezya palm yağının fiyat ve ihracat değerindeki artışı olumlu yönde etkilemiştir. Dünya palm yağı fiyatı COVID-19 salgını sırasında %26 oranında artmış, bu da Endonezya'nın ihracat gelirinin %16.9 oranında artmasına etki etmiştir. Endonezya hükümeti, COVID-19'un Endonezya palm yağı ihracatı üzerindeki olumsuz etkisini hafifletmek için çeşitli çabalar sarf etmiştir. Bu çabalar arasında mali teşvikler ve ekonomik canlandırma sağlanması, aktif tanıtım ve ekonomik diplomasi, ihracat pazarlarının çeşitlendirilmesi ve zorunlu B30 politikasının uygulanmasının geciktirilmesi yer almaktadır.

Keywords

COVID-19, Endonezya, Palm yağı, İhracat

Thanks

This research is derived from the Master's Thesis of the Department of Agricultural Economics at Isparta University of Applied Sciences.

References

• Anonymous (2019). Kuartal I 2019, Perang Dagang AS-China Gerus Harga Sawit. Retrieved October 10, 2023, from https://www.cnnindonesia.com/ekonomi/20190516091733-92-395314/kuartal-i-2019-perang-dagang-as-china-gerus-harga-sawit.
• Anonymous (2021). Global Vegetable Oil Market (2020 to 2027) Increasing Demand for Vegetable Oils in the Biofuel Industry is Driving Growth. Globe Newswire. Retrieved June 02, 2023, from https://www.globenewswire.com/news-release/2021/03/02/2185174/0/en/Global-Vegetable-Oil-Market-2020-to-2027-Increasing-Demand-for-Vegetable-Oils-in-the-Biofuel-Industry-is-Driving-Growth.html.
• Ashaari, A., Abdullah, M., & Fuzi, N. M. (2022). Malaysian palm oil industry performance during epidemic COVID-19. International Journal of Academic Research in Business and Social Sciences, 12(1), 622-628. https://doi.org/10.6007/IJARBSS/v12-i1/12058
• Astra, A. L. (2021). Permintaan sawit masih tinggi di tengah pandemi. PT Astra Agro Lestari Tbk. Retrieved July 06, 2023, from https://www.astra-agro.co.id/2021/08/25/permintaan-sawit-masih-tinggi-di-tengah-pandemi/
• Astra, A. L. (2022). Top harga sawit rekor lagi termahal sepanjang masa. PT Astra Agro Lestari Tbk. Retrieved October 06, 2022, from https://www.astra-agro.co.id/
• Aulya, S. (2022). Kepentingan Indonesia mengekspor CPO ke China pada tahun 2018-2020. Jurnal Online Mahasiswa FISIP, 9(I), 1-6. https://jnse.ejournal.unri.ac.id/index.php/JOMFSIP/article/view/32834
• Bappeti (2023). Stock price (forward-futures-spot) ministry of trade’s commodity futures trading regulatory agency (Bappebti). Ministry of Trade of Republic of Indonesia. Retrieved May 07, 2023, from https://bappebti.go.id/harga_komoditi_bursa
• BPDPKS (2021). Turunkan bea masuk CPO menjadi 2.5%, impor minyak sawit India meningkat signifikan pada September 2021. BPDP. Retrieved July 08, 2023, from https://www.bpdp.or.id/turunkan-bea-masuk-cpo-menjadi-25-impor-minyak-sawit-india-meningkat-signifikan-pada-september-2021
• BPS (2020). Indonesian Oil Palm Statistics 2020. ISSN: 1978-9947. PN:05100.2111. BPS C:5504003. Statistics Indonesia, Jakarta.
• BPS (2021a). Indonesian Economic Report 2021. Dampak Adanya Program Pemulihan Ekonomi Nasional (PEN) terhadap Perekonomian Indonesia di Masa Pandemi. ISSN:1858-0963. PN:07300.2114. BPS C:9199007. Statistics Indonesia, Jakarta.
• BPS (2021b). Indonesian Oil Palm Statistics 2021. ISSN:1978-9947. PN:05100.2209. BPS C:5504003. Statistics Indonesia, Jakarta.
• BPS (2022). Indonesian Economic Report 2022. ISSN:1858-0963. PN:07300.2116. BPS C:9199007. Statistics Indonesia, Jakarta.
• CFR (2023). 1950-2022 Oil dependence and U.S. foreign policy. Council on Foreign Relations. Retrieved April 04, 2023, from https://www.cfr.org/timeline/oil-dependence-and-us-foreign policy?gclid=CjwKCAjw2K6lBhBXEiwA5RjtCU0xRyE7xBnNnX2aUZ4l5YJqe84RSSIMy1CRORpnZPE659-Qwf3pPxoCH1gQAvD_BwE.
• Christina, B. (2020). Hit by oil crash, Indonesia set to delay B40 biodiesel, stay with B30 for now. Reuters. Retrieved April 20, 2023, from https://www.reuters.com/article/indonesia-biodiesel-idUKL4N2CQ2F1
• Christina, B., & Alison, W. (2022). Indonesia to sell 2.5 million tonnes of palm oil to China. Reuters. Retrieved May 02, 2023, from https://www.reuters.com/markets/commodities/indonesia-sell-25-million-tonnes-palm-oil-china-2022-11-11/
• DGEIMA (2023). Statistical of National Leading Estate Crops Commodity 2021-2023. Director General of Estate Indonesian Ministry of Agriculture, Jakarta.
• Ditjenbun (2020). Kementan tanggap: dampak akibat penyebaran COVID-19 bagi ekspor komoditas perkebunan. Kementerian Pertanian Direktoral Jenderal Perkebunan (ditjenbun). Retrieved May 07, 2022, from https://ditjenbun.pertanian.go.id/kementan-tanggap-dampak-akibat-penyebaran-COVID-19-bagi-ekspor-komoditas-perkebunan/
• GAPKI (2021). Refleksi industri sawit 2020 & prospek 2021. Indonesian Palm Oil Association (GAPKI). Retrieved June 06, 2022, from https://gapki.id/news/2021/02/05/refleksi-industri-sawit-2020-prospek-2021/
• GAPKI (2022). Kinerja industri sawit 2021 & prospek 2022. Indonesian Palm Oil Association (GAPKI). Retrieved May 03, 2023, from https://gapki.id/news/2022/01/29/kinerja-industri-sawit-2021-prospek-2022/
• GAPKI (2023). Kinerja industri sawit Indonesia. Indonesian Palm Oil Association (GAPKI). Retrieved May 03, 2023, from https://gapki.id/kinerja-industri-sawit-indonesia/
• Hendra, R. (2019). Industri sawit dan tantangan perang dagang Uni Eropa. KOMPAS. Retrieved October 10, 2023, from https://www.kompas.id/baca/opini/2019/12/31/industri-sawit-dan-tantangan-perang-dagang-uni-eropa-2
• Henry, I. (2020). Isu perang dagang mengancam aktıvıtas perdagangan komodıtas ekspor kelapa sawıt. Jurnal Ilmiah Administrasi Bisnis, 16 (2), 114-139. https://doi.org/10.26593/jab.v16i2.4219.114-139
• Indexmundi (2022a). Palm oil exports by country in 1000 MT. Indexmundi. Retrieved October 06, 2022, from https://www.indexmundi.com/agriculture/?commodity=palm-oil&graph=exports
• Indexmundi (2022b). Palm oil production by country in 1000 MT. Retrieved October 06, 2022, from Indexmundi.https://www.indexmundi.com/agriculture/?commodity=palm-oil
• Jadhav, R., David, G., & Jane, M. (2021). India cuts crude palm oil import tax, potentially boosting imports. Reuters. Retrieved July 08, 2023, from https://www.reuters.com/article/india-palmoil-duty-idUSKCN2E520C
• Jadhav, R., Shri, N., & Angus, M. (2020). India raises import tax on crude palm oil to 44%. Reuters. Retrieved July 08, 2023, from https://www.reuters.com/article/india-palmoil-imports-idINKBN1ZV3H9
• Kamath, A. (2022). How will hiking import tax on palm crude oil help Indian farmers?. Dailyo. Retrieved June 02, 2023, from https://www.dailyo.in/wallet/how-will-hiking-import-tax-on-palm-crude-oil-help-indian-farmers-37636
• Kemenkeu (2020). Respon kebijakan ekonomi indonesia dalam menghadapi Tantangan COVID-19. Ministry of Finance Republic of Indonesia. Retrieved April 20, 2023, from https://pen.kemenkeu.go.id/in/page/tantangancovid
• KOMINFO (2019a). Tiga langkah strategis pemerintah dorong peningkatan ekspor. Ministry of Communication and Information of the Republic of Indonesia. Retrieved October 10, 2023, from https://www.kominfo.go.id/content/detail/17094/tiga-langkah-strategis-pemerintah-dorong-peningkatan-ekspor/0/berita
• KOMINFO (2019b). Pertama di dunia, Indonesia terapkan biodiesel 30 persen (B30). Ministry of Communication and Information of the Republic of Indonesia. Retrieved October 10, 2023, from https://www.kominfo.go.id/index.php/content/detail/23437/pertama-di-dunia-indonesia-terapkan-biodiesel-30-persen-b30/0/artikel_gpr
• LPEI (2021). Outlook ekspor komoditas utama Indonesia 2021. Indonesia Eximbank Lembaga Pembiayaan Ekspor Indonesia (LPEI). Retrieved May 07, 2023, from https://www.indonesiaeximbank.go.id/annual-report
• MEARI (2021). Bahas Penguatan Kerjasama Bilateral, Indonesia-Malaysia Fokus Pada Kolaborasi di Bidang Kelapa Sawit. Siaran Pers HM.4.6/350/SET.M.EKON.3/10/2021. Ministry for Economic Affairs of the Republic of Indonesia, Jakarta.
• MIRI (2021). Tantangan dan Prospek Hilirisasi Sawit Nasional Analisis Pembangunan Industri, Edisi IV. Ministry of Industry of the Republic of Indonesia, Jakarta.
• MRR (2021). Global vegetable oil market research report industry analysis, size, share, growth, trends and forecast 2020 to 2027. Market Research Report. Retrieved May 08, 2023, from https://www.giiresearch.com/report/vmr1008992-global-vegetable-oil-market-research-report.html
• World Bank (2022). World Bank commodity price data (the pink sheet), annual prices, 1960 to present, real 2010 US dollars. Retrieved March 07, 2023, from https://www.worldbank.org/en/research/commodity-markets
• World Bank (2023). World bank commodity price data (the pink sheet), monthly prices in nominal US dollars 1960 to present. Retrieved March 07, 2023, from https://databank.worldbank.org/databases/commodity-price-data