Palm oil exports from Indonesia, the world's largest producer, dropped 5 percent to 19.4 million tonnes last year, the agriculture ministry said on Monday, highlighting rising domestic consumption. The fall in exports came even as palm output rose a modest 2.5 percent in 2011 from the previous year, to 22.51 million tonnes, the ministry said in a statement.
Key hurdles in Indonesia's palm oil sector include difficulties in bank financing, poor infrastructure and relatively low productivity, said Gamal Nasir, director-general of plantation at the agriculture ministry. Rising demand for palm oil - used in cosmetics, cookies and ice cream - has led to deforestation that has prompted an Indonesian moratorium on new permits to clear forests from May last year.
In August, Indonesia raised the minimum for the crude palm oil export tax to 7.5 percent from 1.5 pct previously. The agriculture ministry did not provide a forecast for 2012. Last week, the Indonesian Palm Oil Association said it expects crude palm oil exports to rise as much as 9 percent to 17.5-18 million tonnes and for output to increase 6 percent to 25 million tonnes.
RUBBER OUTPUT RISES Indonesian rubber output rose to 3.088 million tonnes last year from 2.734 million tonnes in 2010, while rubber exports increased to 2.62 million tonnes from 2.42 million tonnes, the agriculture ministry said. "There is a relatively small increase in output because of slow expansion on rubber plantations since there is tripartite agreement to restrict plantation expansion," Nasir said, adding most rubber plantations are relatively old.
The world's top three rubber producers - Thailand, Indonesia and Malaysia - are part of the International Tripartite Rubber Council, that normally uses supply cuts and export curbs to help support prices. Earlier this month, the Indonesian Rubber Association said output in the world's second-biggest producer would rise 6 percent this year to 3.27 million tonnes.
The country's coffee output slipped to 633,990 tonnes in 2011 from 686,920 tonnes in 2010, with exports at 387,870 tonnes versus 433,600 tonnes. Indonesia is the world's fourth-largest coffee producer after Brazil, Colombia and Vietnam, and the world's No 2 robusta coffee producer after Vietnam.