Indonesia’s palm oil production set to rise 10% in 2025

Indonesia expects palm oil production to grow by 10% in 2025, reaching 56–57 million tonnes, exceeding previous forecasts. The increase is supported by favorable weather conditions and strong prices, which have encouraged farmers to manage their plantations more carefully, according to the Indonesian Palm Oil Association (GAPKI).

GAPKI Secretary-General M. Hadi Sugeng noted that weather in 2024–2025 has been optimal, with no prolonged rainfall, and high prices last year motivated farmers to improve plantation management. This provides optimism for higher yields compared to the previous year.

The association revised its annual forecast from 53.63 million tonnes to 56–57 million tonnes. A production level of 57 million tonnes would represent an 8% increase over 2024. At the same time, Indonesia’s palm oil exports are expected to rise to 30–31 million tonnes, up from 29 million tonnes in 2024, offsetting growing domestic demand driven by the B40 biodiesel program, which increased the mandatory blending rate to 40%.

In August 2025, palm oil stocks in Indonesia fell slightly to 2.54 million tonnes, down 1% from the previous month. Crude palm oil production reached 5.06 million tonnes, while palm oil exports totaled 3.47 million tonnes, a 1.8% decrease from July.

For 2026, GAPKI forecasts an additional 5% production growth and plans to use insect pollinators to transfer pollen from male to female flowers, stimulating fruit formation. This approach is expected to boost yields in late 2026 or early 2027, ensuring stable production levels and increased efficiency on Indonesian plantations.

Tags: crop forecast, Indonesia, palm oil