PALMOILMAGAZINE, JAKARTA — Indonesia’s palm oil industry posted stronger performance in April 2026, supported by higher production, rising domestic consumption, and a sharp increase in exports. However, robust demand in both domestic and international markets led to a decline in national palm oil inventories.
GAPKI Executive Director Mukti Sardjono said crude palm oil (CPO) production reached 4.479 million metric tons in April, up 1.73 percent from 4.403 million tons recorded in March.
Meanwhile, palm kernel oil (PKO) production eased slightly to 416,000 tons from 424,000 tons in the previous month. As a result, combined CPO and PKO production totaled 4.903 million tons in April, representing a 1.70 percent increase from 4.821 million tons in March.
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On a year-on-year basis, the industry also recorded significant production growth. Total CPO and PKO output during January-April 2026 reached 20.461 million tons, up 13.43 percent from 18.039 million tons during the same period in 2025.
Domestic consumption also strengthened during the month, increasing 1.23 percent to 2.141 million tons from 2.115 million tons in March.
The growth was primarily driven by higher biodiesel and oleochemical demand. Biodiesel consumption rose 7.67 percent to 1.137 million tons, while oleochemical consumption increased 6.79 percent to 173,000 tons.
In contrast, food sector consumption declined 7.36 percent to 831,000 tons from 897,000 tons in the previous month.
Cumulative domestic consumption during the first four months of 2026 reached 8.666 million tons, representing a 6.06 percent increase compared with 8.171 million tons recorded during the same period last year.
Indonesia’s palm oil exports also recorded robust growth in April. Total exports reached 2.777 million tons, up 28.09 percent from 2.168 million tons in March.
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The largest increase occurred in CPO exports, which surged 59.38 percent to 153,000 tons from 96,000 tons. Exports of processed palm oil products rose 35.52 percent to 2.041 million tons, while oleochemical exports increased 3.85 percent to 486,000 tons.
Exports of processed palm kernel oil products also climbed 3.19 percent to 97,000 tons.
During the January-April period, total exports reached 11.324 million tons, an increase of 20.26 percent compared with 9.416 million tons during the corresponding period in 2025.
China recorded the largest increase in April imports of Indonesian palm products, rising by 118,000 tons. Other major growth markets included Africa, up 97,000 tons; the United States, 62,000 tons; India, 53,000 tons; the Middle East, 49,000 tons; Pakistan, 48,000 tons; Bangladesh, 40,000 tons; and the European Union, 7,000 tons.
Meanwhile, exports to Russia declined by 17,000 tons, while shipments to Malaysia fell by 9,000 tons compared with March.
On a cumulative basis through April, China remained the largest growth market, with imports increasing by 889,000 tons year-on-year. Other notable gains were recorded in Africa, India, the Middle East, the European Union, Malaysia, and Bangladesh.
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Conversely, exports to Pakistan, Russia, and the United States declined compared with the same period last year.
Export earnings also strengthened considerably. The value of Indonesia’s palm oil exports rose to US$3.38 billion in April, up 29.5 percent from US$2.61 billion in March.
During the first four months of 2026, export revenues reached US$13.04 billion, representing a 20.52 percent increase compared with US$10.82 billion recorded during the same period in 2025.
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The improvement in export earnings was supported by both higher export volumes and stronger international prices. Average CPO prices during January-April 2026 reached US$1,408 per ton CIF Rotterdam, compared with US$1,211 per ton during the same period a year earlier.
Despite higher production, rising domestic demand and export shipments reduced national inventories. Beginning stocks in April stood at 2.568 million tons. After adding production and subtracting domestic consumption and exports, end-April inventories fell to 2.558 million tons.
The slight decline from the March inventory level of 2.568 million tons indicates continued strong demand for Indonesian palm oil products in both domestic and overseas markets. (P3)
