THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY

USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT

POLICY

Date:

GAIN Report Number:

Approved By:

Prepared By:

Report Highlights:

Indonesian palm oil production will continue grow and will reach 25.4 million metric tons (mmt) in

marketing year (MY) 2011/2012, due to expanded harvested areas and higher yields. Indonesian

soybean production remains uncertain due to unpredictable weather patterns. Jonn Slette/Edy Wiyono Dennis Voboril 

## Indonesia Oilseeds and Products Annual Oilseeds and Products Annual Indonesia ID1107 3/9/2011 Required Repor t

- public distributionExecutive Summary:

Post predicts an increase in palm oil production from 23.6 mmt in MY 2010/2011 to 25.4 mmt in

MY 2011/2012 thanks to larger harvesting area at 6.35 million hectares and yield improvement

at 4.0 mt per hectare.

Palm kernel, palm kernel oil, and palm kernel meal, in parallel with an increase in palm oil

production, are predicted to register an increase in production to 6.8 mmt, 2.96 mmt, and 3.54

mmt respectively in MY 2011/2012.

Whether Indonesia’s soybean production will increase in MY 2010/2011 remains ambiguous due

to weather uncertainty. Post predicts soybean production level at 720,000 metric ton (mt) in MY

2011/2012.

Post estimates an increase in importation of soybean meal to 2.7 mmt in MY 2011/2012 thanks

to six percent growth in animal feed production.

Indonesia fresh coconut production has been on the downtrend due to smaller harvesting area

and declining yields. Con sequently, production of copra and copra’s derivative products crude

coconut oil and copra meal

- is predicted to decline in the next two marketing years.

Indonesia imported 195,000 mt of peanuts in MY 2009/2010. Reduced production is expected to

lead to an import level of 292,000 mt in MY 2010/2011. Imports will slightly drop to 250,000

mt in MY 2011/2012 thanks to a projected production recovery.

Commodities:

Production:

Indonesia’s palm oil production will continue to grow to 25.4 mmt in MY 2011/2012. This growth will

be primarily driven by increased harvested areas and higher yields. Between the years of 2000

– 2010,

the harvested area for oil palm growth fluctuated between 200,000 to 500,000 hectares, wi th average

growth being roughly 340,000 hectares. Post estimates that the harvested area will increase by an

additional 250,000 hectares in MY 2011/2012, reaching a total 6.35 million hectares. Production yields

are expected to increase to 4.0 mt per hec tare, as more harvested area begins to enter peak production.

Moreover, higher palm oil prices will provide increased economic incentives for increased use of

fertilizer and better crop management.

Consumption:

Palm oil for domestic consumption is dom inated by the Indonesian food processing industry. Food uses

of palm oil have averaged annual growth rates of nearly four percent since 2003. The use of palm oil by

the domestic food industry is predicted to increase to approximately 4.6 mmt in MY 2011/2 012.

Post predicts that the palm oil as biofuel feedstock will not likely experience progressive growth during

the next two years. Limited government subsidies available to biofuel producers, competition with

subsidized fossil fuels and uncompetitive biofuel purchasing prices by PERTAMINA (Indonesia’s state Oil, Palmowned oil company) prohibits the establishment of a transparent and competitive Indonesian biofuels

market.

Currently the Government of Indonesia (GOI) is developing downstream palm oil industri al processing

clusters, primarily for oleochemical production. Progress toward realizing this plan has been slow. As

a result, domestic palm oil use by oleochemical industries will experience only moderate growth. Post

estimates an increase in industria l use of palm oil by biofuel and oleochemical industry to 1.25 mmt in

MY 2011/2012.

Feed production is expected to increase by six percent to 11 mmt in MY 2011/2012. The feed industry

will procure 185,000 mt of palm oil during the same marketing year.

Trade:

Post predicts that the majority of Indonesian palm oil will be exported in the next marketing year, with

domestic consumption growth remaining moderate. Post predicts export volumes of palm oil will grow

from 17.85 mmt in the current marketing yea r to 19.35 mmt in MY 2011/2012, with vegetable oil

demand from China and India being the primary driver. Export growth to Europe depends on

Indonesia’s compliance with sustainable palm oil production requirements and the progress in Reducing

Emissions fro m Deforestation and Forest Degradation (REDD) enforcement. Significantly, Europe’s

supply and demand situation for rapeseed and sunflower oil will also be relevant in their demand for

palm oil. Provided that external factors remain predictable, Post expe cts Indonesian palm oil export to

Europe in MY 2011/2012 will remain consistent at roughly 4.0 mmt.

Stocks: Post expects ending stocks to increase from 302,000 mt in MY 2010/2011 to 367,000 mt in MY

2011/2012.

Policy:

The Indonesian Palm Oil Producers As sociation (GAPKI) has proposed to the GOI a scheme to

replace progressive palm oil export taxes with a three percent flat tax. The GOI has indicated

that it may be possibility of adopting a flat tax, but stressed that the percentage must be greater

than t he three percent proposed by GAPKI. This debate remains ongoing and the GOI continues

to maintain its progressive export tax, which raises taxes on a sliding scale based on the

international price of palm oil. This results in higher export taxes during p eriods of high palm

oils prices.

The GOI was expected to start implementing REDD as of January 2011. However,

implementation achieved, as stakeholders, to include the Ministry of Forestry, the Ministry of

Agriculture, palm oil production companies, mi ning companies, and non

- governmental

organizations are still debating whether the draft should include only primary forests or both

primary and secondary forests that are prohibited to be converted into other area uses such as

mining and estate business.

The rising palm oil prices have triggered a domestic cooking oil price hike. The GOI, hopes to

maintain more stable cooking oil prices by providing consumer price control subsidies. Up to

240 billion Indonesian rupiah (roughly $20 million) has been pu t aside for this initiative in

calendar year 2011.Production, Supply and Demand Data Statistics:

Oil, Palm

Indonesia 2009/2010 2010/2011 2011/2012

Market Year Begin: Oct

2009 Market Year B egin: Oct

2010 Market Year Begin: Oct

2011

USDA

Official New Post USDA

Official New Post USDA

Official New Post

Area Planted 0 7,650 0 7,800 8,000

Area Harvested 0 5,900 0 6,100 6,350

Trees 0 1,040,400 0 1,060,800 1,088,000

Beginning Stocks 190 190 242 242 297

Production 22,000 22,000 23,600 23,600 25,400

MY Imports 55 55 55 55 55

MY Imp. from U.S. 0 0 0 0 0

M Y Imp. from EU 0 0 0 0 0

Total Supply 22,245 22,245 23,897 23,897 25,752

MY Exports 16,573 16,573 17,850 17,850 19,350

MY Exp. to EU 2,950 2,950 4,000 4,000 4,330

Industrial Dom. Cons. 1,165 1,165 1,180 1,180 1,250

Food Use Dom. Cons. 4,110 4,110 4,395 4,400 4,600

Feed Waste Dom. Cons. 155 155 170 170 185

Total Dom. Cons. 5,430 5,430 5,745 5,750 6,035

Ending Stocks 242 242 302 297 367

Total Distribution 22,245 22,245 23,897 23,897 25,752

CY Imports 5 5 5 5 5

CY Imp. from U.S. 0 0 0 0 0

CY Exports 16,750 16,750 18,000 18,000 19,54 0

CY Exp. to U.S. 0 0

TS=TD 0 0 0

Commodities:

Production:

Palm fruit has two major parts, including the mesocarp from which palm oil is extracted and the kernel.

The followin g chart demonstrates the total amounts of Indonesian palm kernel over the last several

decades: Oilseed, Palm KernelThe above data shows that total palm kernel production experienced steep growth since 1999, reaching

12.4 mmt in 2010. In 2009 palm kernel crushers only used 48 percent of the palm kernel produced.

However, this level is up significantly since 2000 due to increased capacity of palm kernel processing

plants.

Palm kernel production stood at 5.875 mmt in MY 2009/2010. Post predicts that this will rise to 6.125

and 6.8 mmt in MY 2010/2011 and 2011/2012 respectively.

Consumption:

97 percent of palm kernel used by Indonesian crushers goes toward the production PKO (and

subsequently PKM). The remaining three percent of Indonesian palm kernel is used in the production

of livestock feed. No Indonesian palm kernel is exported, and Indonesia does not currently import palm

kernel, as the domestic supply exceeds demand.Production, Supply and Demand Data Statistics:

Oilseed, Palm Kernel

Indonesia 2009/2010 2010/2011 2011/2012

Market Year Begin: Oct

2009 Market Year Begin: Oct

2010 Market Year Begin: Oct

2011

USDA

Official New

Post USDA

Official New

Post USDA Official New Post

Area Planted 0 7,650 0 7,800 8,000

Area Harvested 3,250 5,900 0 6,100 6,350

Trees 0 0 0

Beginning Stocks 230 230 80 80 85

Production 5,875 5,875 6,300 6,125 6 ,800

MY Imports 0 0 0 0 0

MY Imp. from U.S. 0 0 0 0 0

MY Imp. from EU 0 0 0 0 0

Total Supply 6,105 6,105 6,380 6,205 6,885

MY Exports 0 0 0 0 0

MY Exp. to EU 0 0 0 0 0

Crush 5,950 5,950 6,200 6,045 6,710

Food Use Dom. Cons. 0 0 0 0 0

Feed Waste Dom. Cons. 75 75 75 75 75

Total Dom. Cons. 6,025 6,025 6,275 6,120 6,785

E nding Stocks 80 80 105 85 100

Total Distribution 6,105 6,105 6,380 6,205 6,885

CY Imports 0 0 0 0 0

CY Imp. from U.S. 0 0 0 0 0

CY Exports 0 0 0 0 0

CY Exp. to U.S. 0 0 0 0 0

TS=TD 0 0 0

Commodities:

Production:

PKO is derived from palm kernel at the extraction rate of around 44 percent. Indonesia produced 2.6

mmt of PKO in MY 2009/2010. Increasing palm oil production and expanding crushing capacity would

raise PKO production to 2.65 and 2.96 mmt in MY 2010/2011 and 2011/2012 respectively. Oil, Palm KernelConsumption:

Domestic use is approximately 33 percent of total Indonesian PKO production, with do mestic industrial

consuming the lion’s share (85 percent).

Trade:

66 percent of total Indonesian PKO production is destined for the export market. Indonesia PKO

exports registered at nearly 1.59 mmt in MY 2009/2010. The volume is expected to grow to 1.8 and 2

mmt in MY 2010/2011 and MY 2011/2012 respectively.

Production, Supply and Demand Data Statistics:

Oil, Palm Kernel

Indonesia 2009/2010 2010/2011 2011/2012

Market Year Begin: Oct

2009 Mar ket Year Begin: Oct

2010 Market Year Begin: Oct

2011

USDA

Official New

Post USDA

Official New

Post USDA Official New Post

Crush 5,950 5,950 6,200 6,045 6,750

Extr. Rate, 999.9999 0. 0.4378 0. 0.4384 0.4378

Beginn ing Stocks 36 36 225 225 187

Production 2,605 2,605 2,715 2,650 2,955

MY Imports 2 2 2 2 2

MY Imp. from U.S. 0 0 0 0 0

MY Imp. from EU 0 0 0 0 0

Total Supply 2,643 2,643 2,942 2,877 3,144

MY Exports 1,586 1,586 1,900 1,800 2,030

MY Exp. to EU 550 550 550 550 600

Industrial Dom. Cons. 700 700 750 750 800

Food Use Dom. Cons. 132 132 140 140 150

Feed Waste Dom. Cons. 0 0 0 0 0

Total Dom. Cons. 832 832 890 890 950

Ending Stocks 225 225 152 187 164

Total Distribution 2,643 2,643 2,942 2,877 3,144

CY Imports 2 2 2 2 2

CY Imp. from U.S. 0 0 0 0 0

CY Exports 1,650 1,650 1,950 1,950 2,100

CY Exp. to U.S. 0 0 0 0 0

TS=TD 0 0 0Commodities:

Production:

PKM is derived from palm kernel at the extraction rate of around 53 percent. Indonesia produced 3.12

mmt of PKM in MY 2009/2010. Increasing palm oil production and expanding crushing capacity

would raise PKM production to 3.2 and 3.5 mmt in MY 2010/2011 and 2011/2012 respectively.

Consumption:

Domestically, PKM is only consumed for animal feed and accounted for nearly 400,000 mt in MY

2009/2010. Feed use of PKM is expected to slowly grow to 450,000 and 500,000 mt in MY 2010/2011

and 201 1/2012 respectively.

Trade:

85 percent of total Indonesian PKM production is destined for the export market. Indonesian PKM

exports registered at 2.6 mmt in MY 2009/2010. The volume is expected to grow to 2.8 and more than

3 mmt in MY 2010/2011 and MY 2011/2012 respectively. Meal, Palm KernelProduction, Supply and Demand Data Statistics:

Meal, Palm Kernel

Indonesia 2009/2010 2010/2011 2011/2012

Market Year Begin: Oct

2009 Market Year Beg in: Oct

2010 Market Year Begin: Oct

2011

USDA

Official New

Post USDA

Official New

Post USDA Official New Post

Crush 5,950 5,950 6,200 6,045 6,750

Extr. Rate, 999.9999 1. 0.5235 1. 0.5327 0.5237

Beginning Stocks 30 30 144 144 115

Production 3,115 3,115 3,245 3,220 3,535

MY Imports 2 2 1 1 2

MY Imp. from U.S. 0 0 0 0 0

MY Imp. from EU 0 0 0 0 0

Total Supply 3,147 3,147 3,390 3,365 3,652

MY Exports 2,606 2,606 2,800 2,800 3,025

MY Exp. to EU 600 600 600 600 700

Industrial Dom. Cons. 0 0 0 0 0

Food Use Dom. Cons. 0 0 0 0 0

Feed Waste D om. Cons. 397 397 450 450 500

Total Dom. Cons. 397 397 450 450 500

Ending Stocks 144 144 140 115 127

Total Distribution 3,147 3,147 3,390 3,365 3,652

CY Imports 0 0 0 0 0

CY Imp. from U.S. 0 0 0 0 0

CY Exports 2,725 2,725 2,850 2,850 3,050

CY Exp. to U.S. 0 0 0 0 0

SME 141 141 160 160 178

TS=TD 0 0 0

Commodities:

Production:

Indonesian soybean production in MY 2011/2012 is predicted to reach 720,000 mt. This prediction

anticipates the possibility that Indonesia will not increase its production levels in MY 2010/2011 due to

ongoing w eather problems.

The Indonesia Weather Office (BMKG), at the prospective level, has indicated that the 2011 dry season

might start in June instead of April. Ministry of Agriculture officials have expressed their anxiety that Oilseed, SoybeanIndonesia will not increase soybean production in 2011 due to the unpredicted weather situation.

Farmers in the southern areas of West Java typically finish preparing their fields for soybean production

by the end of February. When weather cycles are normal, standing crops of soyb eans are visible in

April, when the dry season typically begins. The fields and beans then begin to dry down and farmers

can harvest their crops during the beginning of June. However, because of the recent extraordinary

weather, Indonesia’s soybean produc tion in MY 2010/2011 remains uncertain.

Post reflects uncertainty in Indonesia soybean production recovery in the following scenario:

Provided that the weather patterns are normal, Post predicts that production would increase from

700,000 mt in MY 2009 /2010 to 720,000 mt in MY 2010/2011. Post pegs production in MY 2011/2012

at 720,000 mt to take into account the possible production problems in MY 2010/2011.

Consumption:

As mentioned in our January 2011 oilseeds update, the annual growth of the produc tion of tempeh and

tofu

– which accounts for a large majority of Indonesian soybean consumption

– stands at two to three

percent. Smaller food sectors such as soymilk and soy sauce are growing at a higher rate, reportedly up

to eight percent.

Based on that growth rate, domestic soybean consumption is predicted to grow to 2.45 mmt in MY

2011/2012.

Trade:

Stagnant production in the midst of growing consumption will result in higher imports of soybean.

Imports of soybeans are expected to grow to 1.73 mm t in MY 2011/2012, of which 91 percent is

expected to be imported from the United States.Production, Supply and Demand Data Statistics:

Oilseed, Soybean

Indonesia 2009/2010 2010/2 011 2011/2012

Market Year Begin: Oct

2009 Market Year Begin: Oct

2010 Market Year Begin: Oct

2011

USDA

Official New

Post USDA

Official New

Post USDA Official New Post

Area Planted 540 550 550 555 555

Area Harvested 530 530 550 535 535

Beginning Stocks 100 100 70 70 50

Production 700 700 740 720 720

MY Imports 1,620 1,620 1,635 1,655 1,730

MY Imp. from U.S. 1,467 1,467 1,320 1,500 1,575

MY Imp. from EU 0 0 0 0 0

Total Supply 2,420 2,420 2,445 2,445 2,500

MY Exports 0 0 0 0 0

MY Exp. to EU 0 0 0 0 0

Crush 0 0 0 0 0

Food Use Dom. Cons. 2,300 2,300 2,340 2,340 2,390

Feed Waste Dom. Cons. 50 50 55 55 60

Total Dom. Cons. 2,350 2,350 2,395 2,395 2,450

Ending Stocks 70 70 50 50 50

Total Distribution 2,420 2,420 2 ,445 2,445 2,500

CY Imports 1,630 1,630 1,635 1,635 1,700

CY Imp. from U.S. 1,450 1,450 1,320 1,320 1,335

CY Exports 0 0 0 0 0

CY Exp. to U.S. 0 0 0 0 0

TS=TD 0 0 0

Commodities:

Consumption:

Soybean meal is mainly used by livestock feed producers in Indonesia. The growing trends in soybean

meal consumption correspond with the increase in animal feed production. The incr eased levels of

animal feed production further correspond with Indonesia’s rapid economic growth. As more people

enter the middle class, more people can afford to pay for meat, eggs and dairy. The Indonesian Feed

Millers Association (GPMT) sets their nat ional feed production target at 10.3 mmt in MY 2010/2011.

GPMT also projects six percent production growth in livestock feed over the next marketing year. Meal , SoybeanSoybean meal, which is used as a source of protein, accounts for 25 percent of total feed ingredie nt.

Based on this information, the feed industry will likely procure nearly 2.58 and 2.74 mmt of soybean

meal in MY 2010/2011 and MY 2011/2012 respectively.

Trade:

Limited soybean supplies and the absence of soybean crushing facilities make Indonesia to tally

dependent on imported soybean meal to satisfy its domestic demand. Indonesia is predicted to import

2.6 and 2.7 mmt of soybean meal in MY 2010/2011 and MY 2011/2012 respectively. The

overwhelming majority of Indonesian tofu and tempeh is derived fr om U.S. soybeans, due to their

quality and size, which is desirable for these products. However, Indonesian importers of soybean meal

are less concerned about overall quality and tend to be more price sensitive. As a result, a large margin

of the soybean meal imported into Indonesia originates from South America.

Production, Supply and Demand Data Statistics:

Meal, Soybean

Indonesia 2009/2010 2010/2011 2011/2012

Market Year Begin: Oct

2009 M arket Year Begin: Oct

2010 Market Year Begin: Oct

2011

USDA

Official New

Post USDA

Official New

Post USDA Official New Post

Crush 0 0 0 0 0

Extr. Rate, 999.9999 0. 0. 0. 0. 0.

Beginning Stocks 65 65 45 144 169

Production 0 0 0 0 0

MY Imports 2,330 2,504 2,600 2,600 2,700

MY Imp. from U.S. 225 533 175 175 200

MY Imp. from EU 1 1 1 1 0

Total Supply 2,39 5 2,569 2,645 2,744 2,869

MY Exports 0 0 0 0 0

MY Exp. to EU 0 0 0 0 0

Industrial Dom. Cons. 0 0 0 0 0

Food Use Dom. Cons. 0 0 0 0 0

Feed Waste Dom. Cons. 2,350 2,425 2,600 2, 575 2,735

Total Dom. Cons. 2,350 2,425 2,600 2,575 2,735

Ending Stocks 45 144 45 169 134

Total Distribution 2,395 2,569 2,645 2,744 2,869

CY Imports 2,450 2,450 2,600 2,600 2,760

CY Imp. from U.S. 150 150 175 175 200

CY Exports 0 0 0 0 0

CY Exp. to U.S. 0 0 0 0 0

SME 2,350 2,425 2,600 2,575 2,735

TS=TD 0 0 0Commodities:

Production:

The availability of copra in Indonesia depends on the following factors:

Fresh coconut productions

Indonesia fresh coconut production is predicted to decline within the next two years due to stagnant

yields and smaller harvested areas. The yields are stagnating as farmers frequently fail to replant and

regularly fertilize their trees. Coconut trees have become more of a “backyard crop” in which a single

household might own between 20

– 50 trees. Farmers who a ctually specialize in coconut production

generally control between 3

– 5 hectares of coconut planting land. The areas usually associated with

coconut production are Gorontalo, North Sulawesi, Riau, and North Sumatra, in which they use

coconuts to produce c opra. Conversely, coconut tree logging activities and land conversion has resulted

in decreased harvested areas for coconut.

Indonesian Fresh Coconut Production (dehusked)

MY Harvested Area Yield Production (MT)

2009/10 3,770,000 0.9284 3,500,000

201 0/11 3,750,000 0.9293 3,485,000

2011/12 3,735,000 0.9277 3,465,000

Source: Post estimate from various sources

Note: production is measured in copra equivalent

As can be seen on the table, country’s coconut production (copra equivalent) is predicted to decline

from 3.5 mmt in MY 2009/2010 to 3.485 mmt in MY 2010/2011, and it is expected to further decline to

3.465 mmt in MY 2011/2012.

Other uses of fresh coconut

Industrial uses for fresh coconut are expected to grow over the next two marketing years

. The

Indonesian food industry, including two large instant coconut milk instant producers, Pulau Sambu and

Cocomas, is the major growth driver of industrial consumption of fresh coconut.

Type of Use Marketing Year

(In MT)

2009/10 2010/11 2011/12

Direct Use 800,000 760,000 735,000

Copra 1,600,000 1,535,000 1,480,000

Instant Coconut Milk 235,000 255,000 280,000

Other Food Industry 865,000 935,000 970,000

Lower supplies of fresh coconuts, combined with higher industrial demand for fresh coconuts, may

result in less fresh coconuts available for copra production. Unstable copra prices also contribute to Oilseed, Copralower copra production, as more farmers prefer to sell fresh coconuts instead of processing into copra.

Consequently, production of copra is predicted to decline from 1.6 million mt in MY 2009/2010 to

1.535 mmt and 1.48 mmt in MY 2010/2011 and MY 2011/2012 respectively.

Consumption: Nearly all production of copra comes from copra crushing facilities, which produce crude

coconut oil and co pra meal.

Trade: A tiny fraction of copra, mostly in North Sulawesi and Gorontalo, is exported to Philippines.

Geographically, these two provinces are very close to Philippines.

Policy:

Indonesia coconut council (DEKINDO) that has been established in 20 08 is proposing to government to

initiate coconut revitalization program in 2012. The program will include distribution of good coconut

seed, replanting and rejuvenation, as well as developing value added products derived from coconut.

Production, Suppl y and Demand Data Statistics:

Oilseed, Copra

Indonesia 2009/2010 2010/2011 2011/2012

Market Year Begin: Oct

2009 Market Year Begin: Oct

2010 Market Year Begin: Oct

2011

USDA

Official New

Post U SDA

Official New

Post USDA Official New Post

Area Planted 0 0 0 0 0

Area Harvested 0 0 0 0 0

Trees 0 0 0 0 0

Beginning Stocks 172 172 172 172 152

Production 1,600 1,600 1,600 1,535 1,480

MY Imports 0 0 0 0 0

MY Imp. from U.S. 0 0 0 0 0

MY Imp. from EU 0 0 0 0 0

Total Supply 1,772 1,772 1,772 1,707 1,632

MY Exports 40 40 50 50 60

MY Exp. to EU 0 0 0 0 0

Crush 1,550 1,550 1,550 1,495 1,440

Food Use Dom. Cons. 0 0 0 0 0

Feed Waste Dom. Cons. 10 10 10 10 10

Total Dom. Cons. 1,560 1,560 1,560 1,505 1,450

Ending Stocks 172 172 162 152 122

Total Distribution 1,772 1,772 1,772 1,707 1,632

CY Imports 0 0 0 0

CY Imp. from U.S. 0 0 0 0

CY Exports 50 50 50 60

CY Exp. to U.S. 0 0 0 0

TS=TD 0 0 0Commodities:

Production:

Crude coconut oil (CCO) is extracted from copra. Lower copra availability, therefore, would reduce

CCO production. Post estimates a decrease in CCO production from 968,000 mt in MY 2009/2010 to

935 and 900,000 mt in MY 2010/2011 and MY 2011/2012 respectively.

Consumption:

Less than forty percent of CCO production is used for industrial and fo od consumption in Indonesia.

Food consumption, however, is expected to decline in the next two marketing years as Indonesian

household more familiar with palm oil for cooking.

Trade: Indonesia is one of the five largest CCO exporting countries. The count ry exports more than 60

percent of its CCO production. Owing to the decreasing CCO production, the growing export and

industrial use of CCO in the next two marketing years would be at the expense of lower food use of

CCO.

Production, Supply and Demand Da ta Statistics:

Oil, Coconut

Indonesia 2009/2010 2010/2011 2011/2012

Market Year Begin: Oct

2009 Market Year Begin: Oct

2010 Market Year Begin: Oct

2011

USDA

Official New

Post USDA

Official Ne w

Post USDA Official New Post

Crush 1,550 1,550 1,550 1,500 1,440

Extr. Rate, 999.9999 1. 0.6245 1. 0.6233 0.625

Beginning Stocks 171 171 264 258 203

Production 968 968 968 935 900

MY Imports 0 0 0 0 0

MY Imp. from U.S. 0 0 0 0 0

MY Imp. from EU 0 0 0 0 0

Total Supply 1,139 1,139 1,232 1,193 1,103

MY Exports 550 556 620 645 650

MY Exp. to EU 165 165 165 195 200

Industrial Dom. Cons. 200 200 230 230 235

Food Use Dom. Cons. 125 125 150 115 110

Feed Waste Dom. Cons. 0 0 0 0 0

Total Dom. Cons. 325 325 380 345 345

Ending Stocks 264 258 232 203 108

Total Distribution 1,139 1,139 1,232 1,193 1,103

CY Imports 0 0 0 0 0

CY Imp. from U.S. 0 0 0 0 0

CY Exports 660 600 660 66 0 665 Oil, CoconutCY Exp. to U.S. 0 0 0 0 0

TS=TD

- 0 0 0

Commodities:

Production:

The extraction of crude coconut oil from copra would result in copra meal as a byproduct. Production

of copra meal, in parallel with CCO production, is expected to decline from 505,000 mt in MY

2009/2010 to 478,000 and 468,000 mt in MY 2010/2011 and 2011/2012 respectively.

Consumption:

Nearly half of Indonesia copra meal production is used for animal (cattle) f eed. Another half of copra

meals are allocated for the export market.

Production, Supply and Demand Data Statistics:

Meal, Copra

Indonesia 2009/2010 2010/2011 2011/2012

Market Year Begin: Oc t

2009 Market Year Begin: Oct

2010 Market Year Begin: Oct

2011

USDA

Official New

Post USDA

Official New

Post USDA Official New Post

Crush 1,550 1,550 1,550 1,500 1,440

Extr. Rate, 999.9999 0. 0.3258 0. 0.3187 0.32 5

Beginning Stocks 12 12 3 15 23

Production 493 505 493 478 468

MY Imports 0 0 0 0 0

MY Imp. from U.S. 0 0 0 0 0

MY Imp. from EU 0 0 0 0 0

Total Supply 505 517 496 493 491

MY Exports 250 250 250 235 235

MY Exp. to EU 15 15 0 0 0

Industrial Dom. Cons. 0 0 0 0 0

Food Use Dom. Cons. 0 0 0 0 0

Feed Waste Dom. Cons. 25 2 252 243 235 225

Total Dom. Cons. 252 252 243 235 225

Ending Stocks 3 15 3 23 31

Total Distribution 505 517 496 493 491

CY Imports 0 0 0 0 0

CY Imp. from U.S. 0 0 0 0 0 Meal, CopraCY Exports 225 225 240 230 230

CY Exp. to U.S. 0 0 0 0 0

SME 114 114 110 106 102

TS=TD 0 0 0

Commodities:

Production:

Indo nesia produced 1.15 mmt of peanuts that were harvested from 700,000 hectares of harvested area in

MY 2009/2010. Production is predicted to slightly decline by 70,000 mt to 1.08 mmt in MY 2010/2011

due to possible unfavorable weather condition (read: highe r rainfall). As the weather may back to

normal, production recovery is expected to take a place in MY 2011/2012.

Consumption:

Most of peanut production is dedicated to food use. Indonesian traditional foods often include peanut

sauces for condiments. Indonesian peanut consumption, therefore, will grow in parallel with population

growth.

Stagnant production, in combination with growing food use, will result in smaller peanuts that are

allocated for animal feed use and crushing.

Trade:

Indonesia expe rienced trade deficit of peanuts at minus 195,000 mt in MY 2009/2010. Production drop

is expected to widen trade deficit to 292,000 mt in MY 2010/2011. The deficit will slightly drop to

250,000 mt in MY 2011/2012 thanks to possible production recovery. Oilseed, PeanutProduction, Supply and Demand Data Statistics:

Oilseed, Peanut

Indonesia 2009/2010 2010/2011 2011/2012

Market Year Begin: Jan

2013 Market Year Begin: Jan

2014 Market Year Begin: Ja n

2015

USDA

Official New

Post USDA

Official New

Post USDA Official New Post

Area Planted 0 0 0 0 0

Area Harvested 750 700 750 690 700

Beginning Stocks 40 40 40 17 11

Production 1,250 1,150 1,250 1,080 1,150

MY Imports 200 200 200 300 260

MY Imp. from U.S. 0 0 0 0 0

MY Imp. from EU 0 0 0 0 0

Total Supply 1,490 1,390 1,490 1,397 1,421

MY Exports 8 5 8 8 10

MY Exp. to EU 0 0 0 0 0

Crush 65 40 65 40 50

Food Use Dom. Cons. 1,310 1,310 1,310 1,320 1,330

Feed Waste Dom. Cons. 67 18 67 18 20

Total Dom. Cons. 1,442 1,368 1,442 1,378 1,400

Ending Stocks 40 17 40 11 11

Total Distribution 1,490 1,390 1,490 1,397 1,421

CY Imports 200 200 200 200 200

CY Imp. from U.S. 0 0 0 0 0

CY Exports 8 5 8 0 0

CY Exp. to U.S. 0 0 0 0 0

TS=TD 0 0 0