JAKARTA (Oct 22): Indonesia's palm oil stock is expected to remain at around 2.5 million metric tonnes at end-2024 after output was affected by dry weather last year, the country's main palm oil industry association Gapki said on Tuesday.

Palm oil product exports by the world's largest producer in August rose 15% from a year earlier to 2.38 million metric tonnes, Gapki data showed, lowering its end-August palm oil stock to 2.45 million tonnes from 2.51 million tonnes a month earlier.

That was Indonesia's the lowest monthly stockpile since March 2019, Gapki data showed.

Gapki expects the stockpile to remain at that level as production of palm oil this year, Secretary General M Hadi Sugeng Wahyudiono told reporters, noting output was affected by a dry weather pattern in 2023.

Output in August was up slightly from a year earlier but overall production from the start of the year was down by 5%.

"Until the end of the year, most likely the (output) will remain 5% lower ... This year the total production of crude palm oil and crude palm oil output is estimated at 51 million tonnes," Hadi said.

Domestic consumption of palm oil is driven by its use in biodiesel blending.

Agriculture Minister Andi Amran Sulaiman on Tuesday reaffirmed the new government's commitment to implement a mandatory 40% mix of palm oil-based fuel in diesel, known as B40, starting from January.

Indonesia currently has a 35% mandatory mix of biodiesel.

Expanding the mix to 40% will increase domestic palm oil consumption by two million tonnes, Gapki chairperson Eddy Martonneo said.

Uploaded by Magessan Varatharaja