Indonesia’s palm oil exports to China are growing

China has asked Indonesia to guarantee sufficient supplies of crude palm oil (CPO) due to growing demand, according to the country’s Deputy Agriculture Minister, Sudarjono. The Jakarta Globe reports details of the statement. Sudarjono noted that China recently submitted a corresponding request to the Indonesian Ministry of Trade.

The government reported that in 2024, Indonesia had a surplus in agricultural trade with China of US$1.77 billion. Palm oil was Indonesia’s largest export, valued at US$2.72 billion.

“China is demanding a long-term guarantee of oil supplies. They see growing demand for palm oil in their country, while Indonesia is the largest producer in the world,” Sudarjono said.

The deputy minister also noted that Indonesia plans to increase palm oil production to meet demand for its biodiesel program. Indonesia is currently implementing the B40 standard, which requires diesel fuel to be blended with 40% palm oil. The country plans to mandate blending at B45 and B50 levels by next year.

Analysts previously estimated that total palm oil consumption in Indonesia in 2025 is expected to reach a record high of 23.1 million tonnes, more than three times the average of the past 10 years.

“We guarantee further improvements in palm oil productivity to meet domestic demand, including supporting the B50 energy program and ensuring reliable export supplies,” Sudaryono said.

Tags: China, Indonesia, palm oil