Indonesian palm exports to slide further in 2025, industry body says

Indonesia is expected to export 27.5 million metric tonnes in 2025, a decline of 6.9% from last year, its biggest palm oil industry group, the Indonesia Palm Oil Association (GAPKI), said on Thursday.

The world’s biggest exporter of the commodity is struggling to boost production of the versatile vegetable oil as its trees age, at a time when it is expanding the mandatory mix of palm oil in biodiesel.

The fall would extend the drop of 8.3% in 2024, when Indonesia exported 29.54 million tonnes of palm oil products, GAPKI data showed.

Indonesia’s marginal production growth in 2025, coupled with higher domestic demand, is expected to reduce prospects for exports, association official Hadi Sugeng told reporters.

“Exports tend to slide year by year, in contrast with domestic consumption,” Hadi added. “Meanwhile, our production is just so-so.”

GAPKI estimated total palm oil output of 53.63 million tonnes this year, including about 48.98 million tonnes of crude palm oil, only a slight increase from last year’s output.

In 2024, Indonesia produced 48.16 million tonnes of crude palm oil and had stocks of 2.58 million by the end of 2024, GAPKI said.

Tight exports have buoyed palm oil prices in global markets, which GAPKI warned would blunt competitiveness against rival vegetable oils.

“Palm oil is no longer a cheap vegetable oil,” Hadi added. “It is often more expensive than other vegetable oils, causing importers, especially India, to buy the cheaper ones.”