Indonesia to more than triple palm oil use
Palm oil use in Indonesia is expected to reach unprecedented levels this year. Analysts predict that this figure will triple the average for the past decade, driven by an increase in biodiesel production forecasts to 13.6 million tonnes, 1.5 million tonnes higher than last year. These forecasts were announced by experts at Oil World (Germany).
The current B40 blending mandate in Indonesia (40% palm biodiesel use) has been implemented despite challenges and uncertainties in the industry. The government plans to further increase biodiesel blending to 50% (B50). Final implementation is scheduled for 2026. This will have a significant impact on future exports of Indonesian palm oil, experts note.
Total palm oil use in Indonesia in 2025 is expected to reach a record high of 23.1 million tonnes, more than three times the average for the past 10 years. However, increased domestic consumption is expected to significantly limit the country’s oil exports, despite increased production volumes.
Against this backdrop, analysts expect palm and soybean oil prices to rise by $100–$150. Sunflower oil, on the other hand, is expected to decline, according to industry representatives, due to a reduction in the premium over alternative products.
Read also
Sunflower meal supplies to China increased fourfold in March
Argentina to cut wheat production by a quarter in MY 2026/27
Brazil considers used cooking oil imports to expand SAF production
Ukraine and Saudi Arabia agree to deepen cooperation in food security
North American wheat market grapples with adverse weather conditions
Got additional questions?
We will be happy to assist!
Write to us
Our manager will contact you soon