Indonesia: Oilseeds and Products Update
Palm oil production continues to expand as young plantations mature. The introduction of a new palm oil levy will add $50 USD to the cost of each ton of Indonesian palm oil exported. The revenue from this program will be used to subsidize Indonesian biodiesel consumption. Industry sources are bullish that the program will offset low fossil fuel prices and help grow consumption. Indonesian palm oil stocks grew in 2015 due to low domestic industrial consumption and growing production. Stocks are expected to moderate as industrial consumption picks back up. Indonesian soybean plantings are down based on reports that Indonesian farmers are planting more corn. Current soybean imports are on track to reach 2.1 million metric tons in 2014/15. The United States remains the primary supplier of soybeans to Indonesia.
