China increases palm oil imports from Indonesia by 31%

China significantly increased its purchases of Indonesian palm oil in 2026. According to the Indonesian Palm Oil Association (GAPKI), shipments to the Chinese market rose by 31% year-on-year in the first half of the year. In June alone, exports to China jumped 67% compared with May.

Overall, Indonesia exported nearly 3.3 mln tons of palm oil and palm oil products in June, bringing January-June shipments to almost 16.6 mln tons. China remains one of the key markets for Indonesian palm oil, which is mainly used in food processing and consumer goods manufacturing.

Processed palm oil accounted for the bulk of Indonesia’s exports. Shipments reached around 2.3 mln tons in June and nearly 11.8 mln tons in the first half of the year. Indonesia’s palm oil export revenues totaled $3.9 bln in June and at least $19.4 bln in January-June.

Shipments to India, another major buyer of Indonesian palm oil, also surged in June, rising 396% from May. However, the sharp monthly increase has not yet reversed the broader trend, as exports to India in the first half of 2026 remained 7% below the previous year’s level.

China therefore shows a more sustained increase in demand for Indonesian palm oil. Growing purchases by one of the world’s largest vegetable oil importers are providing important support to Indonesia’s exports, while the sharp increase in shipments to India has so far been primarily a monthly development.

Tags: China, Indonesia, palm oil