Indonesia exported 22.8 mln tonnes of palm oil in 2024/25

Indonesia’s palm oil exports in MY 2024/25 will fall to 22.8 million tonnes due to lower demand from key buyers such as India, China and the US, as well as the impact of the B40 mandate on biodiesel. However, production is forecast to increase by 3% to 47 million tonnes in 2025/26, driven by favourable weather conditions and sufficient fertiliser use, Kedia Advisory said.

Palm oil prices rose 24% year-on-year between October 2024 and May 2025, making it less competitive with other vegetable oils. Increased shipments to Pakistan and Bangladesh partly offset lower exports in other regions. The positive change in market sentiment came after the revision of the US reciprocal tariffs to 19% and the conclusion of the Comprehensive Economic Agreement between Indonesia and the EU, which may reduce European tariffs in the future.

Indonesia’s soybean consumption is expected to remain stable at 3 million tonnes in 2025/26, mainly driven by the tofu and tempeh industries. Soybean imports are forecast at 2.7 million tonnes, of which 88% are from the US. Despite the decline in global soybean prices, the depreciation of the rupiah has limited purchasing activity.

Overall, Indonesia’s oilseed sector is balancing production growth, demand fluctuations and changes in trade policy. Weather conditions and currency trends will play a crucial role in shaping export performance in the near term, notes Kedia Advisory.

Tags: export, Indonesia, palm oil