Indonesian Liquid Gold vs Trump
- JAKARTA - Palm oil and its derivatives from Indonesia have become essential components in a wide array of U.S.
- The United States relies on a diverse range of Indonesian palm oil products, highlighting the strength of Indonesia's export sector and the global market's dependence on this commodity.
- Palm oil's versatility and affordability have earned it the nickname "liquid gold." Crude palm oil (CPO) can be processed into a multitude of products, including cosmetics, detergents, fuel...
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Indonesian Palm Oil a Key Ingredient in US Industries
JAKARTA – Palm oil and its derivatives from Indonesia have become essential components in a wide array of U.S. products, from bath soap on Walmart shelves to margarine in whole Foods Market and shortening in doughnuts.
The United States relies on a diverse range of Indonesian palm oil products, highlighting the strength of Indonesia’s export sector and the global market’s dependence on this commodity. The important role of Indonesian palm oil in the U.S.economy could create vulnerabilities for America in trade disputes.
Palm oil’s versatility and affordability have earned it the nickname “liquid gold.” Crude palm oil (CPO) can be processed into a multitude of products, including cosmetics, detergents, fuel oil, butter, biscuits, base ingredients, shampoo, lipstick, cooking oil, margarine, chocolate mixtures, and ice cream.
Key Indonesian Palm Oil Exports to the U.S.
1. Processed Palm Oil (HS 15119020)
Processed palm oil (HS 15119020) is the most dominant export, serving various purposes from fast-food restaurants to raw materials for soap and lotion.export volumes surged from 512 million kilograms in 2020 to 813 million kilograms in 2023. However, the value saw a correction in 2024 due to the normalization of global prices.
2. Liquid Fraction of Palm Oil (HS 15119037)
Liquid (HS 15119037) and solid fractions (HS 15119031) of palm oil have also experienced rapid growth. The liquid fraction, commonly used in chocolate, soft margarine, and dairy products, reached 529 million kilograms in 2023, a fourfold increase compared to 2020.The solid fraction, utilized in biscuits and creamers, has consistently remained above 400 million kilograms at its peak.
3. Solid Fraction of Palm Oil (HS 15119031)
4. Refined,bleached,and Deodorized (RBD) palm Oil (HS 15132995)
RBD palm kernel oil (HS 15132995) remains crucial for the U.S. chemical and personal care industries. While volumes have remained stable between 130 and 150 million kilograms, the export value sharply increased to $155 million in 2024, indicating a demand for higher-quality processed oil.
5. Shortening (HS 15179043)
6.Coconut (Copra) and Fractions (HS 15131990)
7. Vegetable Fats and Oils from Palm Kernels (HS 15162023)
8. Olein Palm Oil, Refined, Bleached and Deodorized (RBD) (HS 15132994)
2. Liquid Fraction of Palm Oil (HS 15119037)
Liquid (HS 15119037) and solid fractions (HS 15119031) of palm oil have also experienced rapid growth. the liquid fraction, commonly used in chocolate, soft margarine, and dairy products, reached 529 million kilograms in 2023, a fourfold increase compared to 2020.The solid fraction, utilized in biscuits and creamers, has consistently remained above 400 million kilograms at its peak.
3. Solid Fraction of Palm oil (HS 15119031)
4. Refined,bleached,and Deodorized (RBD) palm Oil (HS 15132995)
RBD palm kernel oil (HS 15132995) remains crucial for the U.S. chemical and personal care industries. While volumes have remained stable between 130 and 150 million kilograms, the export value sharply increased to $155 million in 2024, indicating a demand for higher-quality processed oil.
5. Shortening (HS 15179043)
6.Coconut (Copra) and Fractions (HS 15131990)
7. Vegetable fats and Oils from Palm Kernels (HS 15162023)
8. Olein Palm Oil, Refined, Bleached and Deodorized (RBD) (HS 15132994)