Domestic palm oil consumption rose 6.81% cumulatively through August 2026, while exports increased 2.97%. Ending stocks stood at 2.214 million tons at the end of August.
PALMOILMAGAZINE, JAKARTA — Indonesia’s production of crude palm oil (CPO) and palm kernel oil (PKO) edged lower in August 2026 from the previous month, while domestic consumption and exports increased. Ending palm oil stocks stood at 2.214 million tons at the end of August.
Mukti Sardjono, Executive Director of the Indonesian Palm Oil Association (GAPKI), said CPO production reached 4.880 million tons in August 2026, down 0.50% from 4.904 million tons in July.
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PKO production also declined to 464,000 tons from 466,000 tons a month earlier. As a result, combined CPO and PKO production reached 5.343 million tons in August, down 0.50% from 5.370 million tons in July.
“On a cumulative basis from January to August 2026, CPO and PKO production reached 40.997 million tons, up 5.02% from 39.037 million tons during the same period in 2025,” Sardjono said in a statement received by PalmOilMagazine on Friday (Oct. 9).
Domestic Palm Oil Consumption Rises
Domestic palm oil consumption reached 2.304 million tons in August 2026, up 1.28% from 2.275 million tons in July.
The increase was primarily driven by biodiesel consumption, which rose 5.03% to 1.350 million tons from 1.285 million tons in July.
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In contrast, food-sector consumption fell 3.79% to 775,000 tons from 805,000 tons, while oleo-chemical consumption declined 2.70% to 180,000 tons from 185,000 tons.
During January-August 2026, cumulative domestic consumption reached 17.523 million tons, up 6.81% from 16.406 million tons in the same period last year.
Palm Oil Exports Jump 12.56%
Indonesia’s palm oil product exports reached 3.588 million tons in August 2026, up 12.56% from 3.188 million tons in July.
Exports of processed palm oil products increased 15.12% to 2.643 million tons from 2.296 mil-lion tons. CPO exports also jumped 31.83% to 329,000 tons from 249,000 tons.
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Exports of processed palm kernel oil products rose 14.58% to 113,000 tons from 99,000 tons.
Meanwhile, oleochemical exports declined 6.74% to 501,000 tons from 537,000 tons, while CPKO exports fell 62.54% to 3,000 tons from 7,000 tons.
Cumulatively, Indonesia exported 23.370 million tons of palm oil products during January-August 2026, up 2.97% from 22.696 million tons in the corresponding period of 2025.
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Export Value Reaches US$4.29 Billion
The increase in export volume helped lift the value of Indonesia’s palm oil exports to US$4.29 billion in August 2026, up 12.62% from US$3.81 billion in July.
The average CPO export price, however, edged down 0.34% to US$1,164 per ton from US$1,168 per ton in July.
For the January-August period, the value of palm oil exports reached US$27.55 billion, an 11.14% increase from US$24.78 billion during the same period in 2025.
GAPKI attributed part of the increase to stronger average CPO prices. The average CPO export price during January-August 2026 stood at US$1,140 per ton, up from US$1,075 per ton during the same period last year.
Exports to Pakistan, India and Russia Increase
By destination, exports in August increased from July to several key markets. Shipments to Pa-kistan reached 265,000 tons, up 113%, while exports to India rose 27% to 89,000 tons.
Exports to Russia surged 250% to 77,000 tons, while shipments to Bangladesh increased 48% to 66,000 tons. Exports to Malaysia rose 26% to 38,000 tons.
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However, exports to the European Union (EU-27) fell 44% to 160,000 tons. Shipments to the United States declined 14% to 36,000 tons, while exports to China fell 3% to 19,000 tons and those to Africa decreased 3% to 13,000 tons.
On a cumulative January-August basis, exports to China increased 24.7% from the same period last year, followed by Russia at 11.5%, Malaysia at 7.8%, Bangladesh at 6.2%, and Africa at 3.8%.
In contrast, exports to India declined 20.2%, followed by the United States at 3.9%, Pakistan at 1.7%, and the EU-27 at 0.4%.
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August Palm Oil Stocks Reach 2.214 Million Tons
With beginning stocks of 2.068 million tons, cumulative production of 40.997 million tons, do-mestic consumption of 17.523 million tons, exports of 23.370 million tons, and imports of 43,000 tons, Indonesia’s palm oil stocks stood at 2.214 million tons at the end of August 2026.
The data indicate that while cumulative production continued to grow, stronger domestic con-sumption and exports absorbed a significant portion of Indonesia’s palm oil supply during the January-August period. (P3)
