PALMOILMAGAZINE, JAKARTA — Indonesia has once again posted a strong performance in external trade, driven by a sharp rise in palm oil exports. Statistics Indonesia (Badan Pusat Statistik/BPS) reported that as of October 2025, national palm oil exports—covering crude palm oil (CPO) and processed products—grew at a double-digit pace and remained a key pillar of the country’s trade surplus, which has now been sustained for 66 consecutive months.
BPS data show that the value of Indonesia’s palm oil exports from January to October 2025 reached USD 20.2 billion, accounting for 9.05% of total non-oil and gas exports. “Exports of CPO and its derivatives rose 25.73% in value compared with the same period in 2024,” said BPS Deputy Pudji Ismartini during a press briefing on Monday (December 8).
In the same period last year, palm oil exports stood at USD 16.07 billion. The increase was supported by firmer global prices, with world palm oil prices in October 2025 rising 0.80% month-on-month to USD 1,045.04 per metric ton.
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In volume terms, Indonesia exported 19.49 million tons of palm oil in the first ten months of 2025, up 7.83% from 18.08 million tons in 2024. October alone saw exports reach 1.91 million tons.
While BPS did not detail specific destination countries, India remains one of Indonesia’s largest markets. By October 2025, Indonesia’s non-oil and gas exports to India totaled USD 15.32 billion, with the animal and vegetable fats and oils category—including palm oil—contributing USD 1.38 billion. Demand typically rises during India’s festive season, when consumption of sweets and fried foods increases significantly.
The animal and vegetable fats and oils category has also reinforced Indonesia’s overall trade balance, contributing to a cumulative surplus of USD 28.12 billion as of October 2025.
Amid robust global demand, positive developments have emerged from Europe. The European Parliament recently voted to delay the implementation of the EU Deforestation Regulation (EUDR) by one year. The regulation requires companies to prove that palm oil products are not linked to deforestation through geolocation data—a requirement widely seen as burdensome for Indonesian smallholders.
If the delay is formally enacted, large companies will have until December 30, 2026 to comply with the EUDR, while small and medium-sized enterprises will be granted an extension until June 30, 2027.
Responding to the decision, Coordinating Minister for Economic Affairs Airlangga Hartarto described the delay as a diplomatic win. “This postponement is a victory for Indonesia. Together with other countries, we have called for improvements to the EUDR,” he said at a business forum.
Separately, Indonesia is also lobbying for palm oil to be exempted from US import tariffs in ongoing trade negotiations. Airlangga expressed optimism that the US government would grant the exemption, noting that palm oil cannot be cultivated in the United States. (P3)
