Indonesia’s Palm Oil Exports Increased by 24.9% in H1

Exports from Indonesia rose sharply in June as exporters raced to get out before U.S. tariffs were imposed and palm oil shipments increased, official data released by Statistics Indonesia (BPS) showed on Friday.

Shipments from Southeast Asia’s largest economy rose 11.29 percent year-on-year to $23.44 billion in June, above economists’ forecast of 10.41 percent. In May, the country’s exports grew 9.68 percent.

Palm oil shipments from the world’s largest producer rose 15.1 percent in June and 24.91 percent in the first half of the year.

Imports rose 4.28 percent year-on-year to $19.33 billion in June, below economists’ forecast of 6.5 percent.

The result was a larger-than-expected trade surplus of $4.11 billion in June, above the survey’s forecast of $3.45 billion but slightly below May’s $4.30 billion.

Recall that Washington set Indonesia’s import tariff at 19% under a deal reached in July, rather than the previous threat of a 32% tariff, after Jakarta agreed to scrap most tariffs on U.S. industrial and agricultural products and buy more American goods. Indonesia accounts for about 85% of U.S. palm oil imports.

Earlier, it was reported that the EU would allow Indonesia to supply palm oil to the bloc at a 0% rate.

Tags: Indonesia, palm oil