Indonesia to be largest palm oil consumer

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Indonesia, the world’s largest producer of palm oil, is about to become the largest consumer as well, overtaking India as the front runner.

Consumption could climb as much as 13 per cent, equaling 8.5 million metric tonnes, up from 7.5 tonnes this year, the Jakarta Globe reported Indonesia’s Deputy Trade Minister Bayu Krisnamurthi as saying. Usage of the staple good has already jumped 51 per cent in Indonesia over the past four years.

Output is also expected to rise 7 per cent next year to 27 million tonnes, continuing to meet increased external and internal demand.

In reaction, India has announced intentions to raise import taxes on palm oil and other edible oils, arguing that demand for locally output is being harmed.

Rising demand for palm oil stems from a multiple amount of consumer goods, including instant noodles, candy, cosmetics and cooking oil.

A cheap labour pool and a quickly developing supply chain with locally produced feedstock materials has made Indonesia an attraction destination for production facilities, recently attracting Unilever and L’Oreal to invest in Indonesia as their regional hub.

Indonesia’s economy expanded 6 per cent over the past eight quarters, due to President Susilo Bambang Yudhoyono’s bump in government spending, making the world’s largest archipelago one of the fastest growing nations in Southeast Asia.

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Reading Time: 1 minute

Indonesia, the world’s largest producer of palm oil, is about to become the largest consumer as well, overtaking India as the front runner.

Reading Time: 1 minute

Indonesia, the world’s largest producer of palm oil, is about to become the largest consumer as well, overtaking India as the front runner.

Consumption could climb as much as 13 per cent, equaling 8.5 million metric tonnes, up from 7.5 tonnes this year, the Jakarta Globe reported Indonesia’s Deputy Trade Minister Bayu Krisnamurthi as saying. Usage of the staple good has already jumped 51 per cent in Indonesia over the past four years.

Output is also expected to rise 7 per cent next year to 27 million tonnes, continuing to meet increased external and internal demand.

In reaction, India has announced intentions to raise import taxes on palm oil and other edible oils, arguing that demand for locally output is being harmed.

Rising demand for palm oil stems from a multiple amount of consumer goods, including instant noodles, candy, cosmetics and cooking oil.

A cheap labour pool and a quickly developing supply chain with locally produced feedstock materials has made Indonesia an attraction destination for production facilities, recently attracting Unilever and L’Oreal to invest in Indonesia as their regional hub.

Indonesia’s economy expanded 6 per cent over the past eight quarters, due to President Susilo Bambang Yudhoyono’s bump in government spending, making the world’s largest archipelago one of the fastest growing nations in Southeast Asia.

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