Weaker rupiah supports Indonesia’s palm oil export earnings

Indonesia’s palm oil industry expects export revenues to rise in 2026, driven by strong shipment volumes, higher global prices, and the significant depreciation of the rupiah against the US dollar.

The sector generated $35.87 billion in export earnings in 2025 and anticipates surpassing this level in 2026. In the first quarter of the year alone, export revenue increased by 10.4% year-on-year to $9.66 billion, compared with $8.75 billion in the same period last year.

Price dynamics have also supported growth, with average palm oil prices rising to $1,356 per ton in January–March 2026, up from $1,230 per ton a year earlier. At the same time, higher export volumes further strengthened overall industry performance.

Currency depreciation has become an additional key driver. The weaker rupiah increases export revenue when converted into local currency, boosting returns for producers and traders. Industry representatives note that even with stable dollar-denominated prices, earnings in rupiah terms continue to rise due to exchange-rate effects.

As the world’s largest producer and exporter of palm oil, Indonesia maintains a dominant position in the global market. Industry players remain optimistic that 2026 could outperform the previous year if current trends persist through the end of the year.

Tags: Indonesia, palm oil, margin, export