Analysis of Indonesian Crude Palm Oil Trends

Abstract

Indonesia is a naturally resourceful country. One of these natural resources comes from the agricultural sector, especially plantations. Crude palm oil (CPO) currently becomes one of the leading export commodities in this sector. Indonesian CPO in 2019 increased in production compared to 2018 from 42.9 to 48.4 million tons. The increase in CPO export activities for industrial needs is due to product development and planting area expansion. The attention of related parties regarding the sustainability of these export activities also contributes to such an increase. Evaluation and strategic preparedness based on occurring possibilities are necessary to face global competition. This study aims to analyze trends of Indonesian CPO production, export volume and value, and production areas. It employed the Least Square analysis method with the time series data of 2015 –2019. The findings showed that planting areas and CPO production were increased annually; accordingly, it increased its export volume and value in the global trade